The Motley Fool

DECEMBER 15, 2023

Business development companies (BDCs) can be a great source of dividend income, in part because they are required to pay out at least 90% of their taxable income each year as dividends. The investment firm New England Asset Management (NEAM) is a subsidiary of Berkshire Hathaway. Data source: YCharts.

Mergers and Acquisitions 246

Mergers and Acquisitions Exchange-Traded Funds Financial Institutions Banks 246

The Motley Fool

JULY 16, 2024

Although other asset classes have delivered nominal gains for investors, including housing, gold, and Treasury bonds, no other asset class comes remotely close to the average annual rate of return that stocks have generated over the last 100 years. Lastly, AGNC's investment team relies almost exclusively on agency assets.

Debt 245

Debt Investing Assets Banks 245

The Motley Fool

JULY 29, 2024

As a business development company (BDC) , Ares must return at least 90% of its income to shareholders in the form of dividends for its profits to be exempt from taxes. The company has a lot of income to return with its dividend yield topping 9.2%. Enbridge's distributable cash flow payout range is between 60% and 70%.

Debt 246

Debt Capital Business Development Companies Taxes 246

The Motley Fool

JANUARY 7, 2024

Stock Business Summary Dividend Yield 5. Brookfield Infrastructure (NYSE: BIP) (NYSE: BIPC) Owns and operates infrastructure assets including pipelines, data centers, and utilities 5% (BIP) 4.4% (BIPC) 6. Enbridge (NYSE: ENB) Midstream energy company that operates pipelines and other assets 7.4%

Finance 246

Finance Financing Banks Financial Services 246

The Motley Fool

JUNE 14, 2023

Ares Capital: A 10.05% yield Ares Capital (NASDAQ: ARCC) is a business development company, or BDC. Ares Capital is essentially a lender to midsized companies that have a hard time getting the big banks to return their calls. AT&T cut its dividend in 2022, but it also spun off its unpredictable media assets.

Banks 243

Banks Amortization Debt Capital 243

The Motley Fool

JULY 8, 2024

The business development company (BDC) pays a juicy dividend yield of roughly 9.2%. However, the company has 15 years of steady to growing dividends. The demand for its pipelines and other midstream assets should remain strong with a growing world population driving increased usage of fossil fuels.

Capital 246

Capital Business Development Companies Assets Returns 246

The Motley Fool

AUGUST 28, 2024

Mortgage REITs are businesses that seek to borrow money at low short-term lending rates and use this capital to purchase higher-yielding long-term assets, such as mortgage-backed securities (MBS). As of June 30, only $1 billion of its $66 billion investment portfolio was put to work in riskier assets.

Investing 244

Investing Debt Exchange-Traded Funds Assets 244

The Motley Fool

OCTOBER 22, 2024

With yields on MBSs having risen since March 2022 and short-term borrowing costs on the decline, Annaly has a clearer path to high value assets without the Fed buying MBSs. Lastly, Annaly Capital Management predominantly invests in agency assets. PennantPark Floating Rate Capital: 10.4%

Debt 246

Debt Initial Public Offering Exchange-Traded Funds Capital 246

The Motley Fool

MARCH 19, 2025

Assets that are easy to passively own, conversely, generally produce weaker results. Nearly half of all Berkshire Hathaway's current value is made up of solid-but-small companies you can't directly invest in. And don't think for a minute that Warren Buffett hasn't taken full advantage of this rarely seen business structure, either.

Mutual Funds 244

Mutual Funds Conglomerates Stakes Business Development Companies 244

The Motley Fool

JULY 9, 2023

Ares Capital Ares Capital (NASDAQ: ARCC) reigns as the largest publicly traded business development company (BDC). It provides financing primarily to middle-market businesses. I suspect, though, that oil prices will hold up relatively well with recent production cuts announced by Saudi Arabia and Russia.

Investing 264

Investing Finance Financing Business Development Companies 264

The Motley Fool

FEBRUARY 8, 2024

In simple terms, mortgage REITs look to borrow money at the lowest possible short-term rate and use this capital to purchase higher-yielding long-term assets. These "long-term assets" are often mortgage-backed securities (MBS), which is how the industry got its name. The company raised its monthly payout twice last year.

Debt 246

Debt Investing Assets Capital 246

The Motley Fool

SEPTEMBER 30, 2024

Ares Capital Ares Capital is the world's largest publicly traded business development company ( BDC ). At the end of June, 50% of Ares Captial's assets were first-lien senior secured loans. With a brief exception in 2018, it's been making monthly dividend payments that have risen or remained steady since 2011.

Investors 245

Investors Debt Professional Services Stakes 245

The Motley Fool

OCTOBER 21, 2024

Ares Capital Ares Capital is the world's largest publicly traded business development company, or BDC. The midsize businesses Ares lends to are willing to borrow at higher rates than you might expect. Ares Capital (NASDAQ: ARCC) , and EPR Properties (NYSE: EPR) offer yields above 8% at recent prices.

Legal 244

Legal Capital Business Development Companies Taxes 244

The Motley Fool

MAY 2, 2024

Anyone familiar with middle-market financing probably knows the company well, though. It's the largest publicly traded business development company (BDC) providing financing solutions to middle-market businesses. Ares Capital Ares Capital (NASDAQ: ARCC) might be the least well-known of my picks.

Finance 246

Finance Financing Stakes Business Development Companies 246

The Motley Fool

AUGUST 3, 2024

Ares Capital Corporation Ares Capital is a business development company, or BDC. Income-seeking investors like these types of businesses because they can legally avoid federal income taxes by distributing nearly everything they earn to shareholders as a dividend. For decades, U.S. in the second quarter.

Buyout 246

Buyout Legal Debt Capital 246

The Motley Fool

JANUARY 4, 2024

Spirit Realty's CRE portfolio will complement Realty Income's existing assets, while allowing the combined company to further diversify beyond retail. BDCs are businesses that invest in small- and micro-cap companies (collectively known as "middle-market companies"). History offers comfort for investors, as well.

Debt 246

Debt Investing Assets Capital 246

The Motley Fool

AUGUST 11, 2023

Morgan Asset Management, released a report that compared the returns of publicly traded companies initiating a dividend and growing their payout over a period of 40 years (1972 to 2012) to publicly traded companies that didn't offer a dividend over the same time line. As of June 30, $56.9 PennantPark Floating Rate Capital: 10.8%

Debt 246

Debt Investing Legal Leveraging 246

The Motley Fool

JULY 10, 2024

This is a business development company (BDC), which essentially means it makes relatively high-interest loans to businesses that are large, but not large enough to get loans from traditional banks. As its name implies, nearly all the loans this BDC originates collect interest at floating rates. in the first quarter.

Investing 241

Investing Capital Business Development Companies Portfolios 241

The Motley Fool

AUGUST 13, 2023

Now that it's shed all its risky media assets, income-seeking investors can look forward to steady payouts that could grow significantly in the years ahead. AT&T isn't installing many landlines these days, but heaps of new high-speed internet connections for businesses and mobile devices could drive steady growth of its bottom line.

Investing 243

Investing Debt Business Development Companies Portfolios 243

The Motley Fool

OCTOBER 20, 2024

For decades, ADM has leveraged its enormous global asset base to originate, process, and transport agricultural commodities between over 190 countries. Lots of businesses can crush soybeans, but doing it at a price point that attracts food producers isn't easy. That said, success for one can offset dozens of failures.

Stakes 246

Stakes Finance Financing Shareholders 246

The Motley Fool

DECEMBER 3, 2023

It's a business development company (BDC) that's required to distribute at least 90% of its income to shareholders in the form of dividends to be exempt from federal taxes. It also recently completed the acquisition of alternative asset manager Sculptor Capital Management. Ares Capital stands out from most BDCs, though.

Investing 246

Investing Capital Asset Management Business Development Companies 246

The Motley Fool

FEBRUARY 4, 2024

Ares Capital Ares Capital (NASDAQ: ARCC) is America's largest publicly traded business development company ( BDC ). Middle-market businesses generally have over $10 million in annual revenue, but they still can't get America's big banks to give them loans. dividend yield at recent prices. Mobility service revenue rose 4.4%

Investing 246

Investing Debt Taxes Capital 246

The Motley Fool

AUGUST 23, 2023

AT&T slashed its dividend after spinning off the last of its media assets in 2022, and the stock has been under pressure ever since. With customers who rarely disconnect their mobile or fiber internet connections, AT&T's telecom business is a reliably profitable one that generated $18 billion in free cash flow over the past 12 months.

Banks 246

Banks Debt Legal Business Development Companies 246

The Motley Fool

JANUARY 5, 2024

One of the best ways to create wealth is by investing in companies that pay a dividend. While many different types of companies pay dividends, business development companies (BDCs) represent a unique opportunity. The company's 9.6%

Mergers and Acquisitions 246

Mergers and Acquisitions Leveraged Buyouts Due Diligence Portfolios 246

The Motley Fool

FEBRUARY 19, 2024

The company reported total revenue that rose 1.4% In 2022, AT&T slashed its dividend in half to adjust for the sale of its media assets and still hasn't raised the payout. Last year was the sixth in a row that the company added over 1 million new fiber subscribers. As a BDC, Ares Capital lends to middle-market businesses.

Investing 245

Investing Legal Taxes Capital 245

The Motley Fool

JULY 18, 2024

Main Street Capital Another stock that pays a monthly dividend is Main Street Capital (NYSE: MAIN) , which is a business development company (BDC) that invests in the debt and equity of lower-middle-market companies. It's also grown its net-asset value (NAV) by 130% since 2007. in June.

Amortization 241

Amortization Depreciation Earnings Before Interest Leveraging 241

The Motley Fool

DECEMBER 17, 2023

Ares Capital is organized as a business development company (BDC). Enterprise Products Partners' fortunes don't hinge on oil and gas prices because of its business model built around pipelines and other midstream assets. That's because Ares Capital's dividend yield stands at 9.73%.

Investing 238

Investing Capital Business Development Companies Prospects 238

The Motley Fool

SEPTEMBER 7, 2023

Selling off its media assets helped reduce AT&T's debt load, but the company was still sitting on $132 billion in net debt at the end of June. Justice Department and Environmental Protection Agency (EPA) aren't interested in pursuing. That works out to about 3.1x This BDC pays dividends monthly.

Exchange-Traded Funds 246

Exchange-Traded Funds Debt Amortization Depreciation 246

The Motley Fool

FEBRUARY 24, 2024

Ares Capital Ares Capital (NASDAQ: ARCC) is a business development company ( BDC ), which means it lends to companies that are too big for small business loans but still too small to work with large banks. There are 505 companies in Ares Capital's portfolio and nearly all are backed by private equity sponsors.

Private Equity Firms 246

Private Equity Firms Private Equity Firms Legal Capital 246

The Motley Fool

JUNE 20, 2024

Although the stock market has its ups and downs, equities have handily outperformed other asset classes over the last century, including Treasury bonds, housing, oil, and gold. Investors, say hello to business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). But not all stocks are created equal.

Companies 246

Companies Debt Exchange-Traded Funds Capital 246

The Big Picture

APRIL 1, 2023

 This week, we speak with Ken Kencel, who is president and chief executive officer of Churchill Asset Management, a private credit firm with $46 billion in assets under management that was the top US private equity lender in the 2022 PitchBook league tables and was named 2022 Lender Firm of the Year by The M&A Advisor.

Asset Management 69

Asset Management Assets Mergers and Acquisitions Finance 69

The Motley Fool

MARCH 5, 2024

Ares Capital Ares Capital is America's largest business development company (BDC), which essentially means it's a lender for mid-market businesses throughout America. AT&T AT&T cut its dividend by 47% in 2022 after spinning off its media assets and hasn't raised the payout yet. dividend yield.

Investing 242

Investing Capital Business Development Companies Debt 242

The Motley Fool

DECEMBER 5, 2023

PennantPark Floating Rate Capital: 10.95% yield A second incomparable ultra-high-yield dividend stock that's begging to be added to income seekers' portfolios in December is little-known business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). million of the company's $906.3

Debt 246

Debt Liabilities Assets Capital 246

The Motley Fool

MARCH 2, 2024

Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC). Like Energy Transfer, the company is organized as a limited partnership and operates pipelines, storage facilities, and other midstream assets. However, the company's yield of around 7.5%

New York Stock Exchange 240

New York Stock Exchange Buyout Investing Legal 240

The Motley Fool

FEBRUARY 18, 2024

The company's dividend yield of 9.49% would enable you to make well nearly $3,638 in passive income this year. Ares Capital offers such a high yield primarily because of its business structure. Of course, the company must generate plenty of income in the first place to have enough to pay dividends.

Investing 239

Investing Capital Business Development Companies Taxes 239

The Motley Fool

AUGUST 25, 2023

Net-interest margin" refers to the average yield AGNC nets from its owned assets less the average yield on what it's borrowed. However, there is light at the end of the tunnel for AGNC, and this good news should provide a lift to the company's shares sooner than later. Furthermore, all but $1.1

Debt 246

Debt Initial Public Offering Investing Capital 246

The Motley Fool

DECEMBER 4, 2023

AT&T Income-seeking investors should be flocking to AT&T (NYSE: T) now that it's sold off all of its risky media assets. This is a heavy load, but highly reliable cash flows from mobile, home, and business internet subscribers are sufficient to whittle it down to a more manageable figure. yield at recent prices.

Debt 233

Debt Investing Amortization Depreciation 233