The Motley Fool

OCTOBER 22, 2024

Companies that dole out a dividend to their shareholders on a regular basis tend to be recurringly profitable and time-tested. 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. Image source: Getty Images.

Debt 246

Debt Initial Public Offering Exchange-Traded Funds Capital 246

The Motley Fool

APRIL 16, 2024

Hercules Capital Hercules Capital is a business development company ( BDC ) that lets everyday investors get in on the ground floor with innovative tech and life science businesses. Its investments include a mixed bag of successful companies, including Axsome Therapeutics , Palantir Technologies , and Transmedics Group.

Hedge Funds 246

Hedge Funds Portfolios Capital Business Development Companies 246

The Motley Fool

JUNE 27, 2023

These companies are willing to distribute their earnings to shareholders, but that doesn't mean they want to offer eye-popping dividend yields. Investors have pushed their stock prices down because they aren't entirely convinced these businesses can continue growing earnings at a healthy pace. Image source: Getty Images.

Shareholders 246

Shareholders Assets Business Development Companies Taxes 246

The Motley Fool

NOVEMBER 3, 2024

That's because companies rarely commit to distributing a portion of their profits to shareholders unless they're already profitable and likely to stay that way. Dividend-paying businesses have to be extra careful with their cash flows, which tends to benefit investors. At recent prices, Rithm Capital offers a big 9.5%

Legal 130

Legal Capital Debt Shareholders 130

The Motley Fool

JUNE 13, 2024

Just as the name suggests, these are companies that own revenue-bearing properties ranging from office buildings to hotels to apartments to warehouses. Most of any rent-driven profits produced by these organizations are passed along to a REIT's shareholders. Even by REIT standards, however, Realty Income is notable.

Banks 242

Banks Shareholders Capital Business Development Companies 242

The Motley Fool

AUGUST 13, 2023

Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded business development company (BDC) in the world. It provides alternative financing to middle-market companies across a wide range of industries. The company also has potential growth opportunities in transporting captured carbon.

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Initial Public Offering Financing Finance Leveraging 246

The Motley Fool

MARCH 2, 2024

Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC). As a BDC, Ares Capital must return at least 90% of its taxable income to shareholders in the form of dividends. However, the company's yield of around 7.5% isn't shabby at all.

New York Stock Exchange 240

New York Stock Exchange Buyout Investing Legal 240

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. over the past five years. For decades, U.S.

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Buyout Legal Debt 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. Including exchange-traded funds (ETFs), there are well over 1,000 securities that investors can choose from that offer their shareholders/unitholders a dividend.

Companies 246

Companies Debt Exchange-Traded Funds Capital 246

The Motley Fool

DECEMBER 4, 2023

Businesses usually become profitable on a recurring basis long before they commit to a dividend program. Once they make such a commitment, returning a portion of profits to shareholders forces management teams to make smarter decisions. Image source: Getty Images. Plus, there could be much more in the years that follow.

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Debt Investing Earnings Before Interest Amortization 233

The Motley Fool

JUNE 23, 2023

Morgan Asset Management, a division of money-center bank JPMorgan Chase , released a study that compared the performance of publicly traded companies that initiated and grew their payouts between 1972 and 2012 to public companies that didn't offer a payout over the same timeline. In 2013, J.P. Image source: Getty Images.

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Debt Investing Asset Management Assets 246

The Motley Fool

SEPTEMBER 7, 2023

Buying shares of businesses that produce profits and commit to returning those profits to their shareholders is an investing strategy with a terrific track record. 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.

Exchange-Traded Funds 246

Exchange-Traded Funds Debt Earnings Before Interest Amortization 246

The Motley Fool

JUNE 8, 2024

Brookfield Renewable (NYSE: BEPC) (NYSE: BEP) is particularly well suited to deliver gains to shareholders fueled by clean energy. It owns an ever-expanding portfolio of wind, solar, hydroelectric, nuclear, and other power-producing assets ranging across five continents. Ares operates as a business development company ( BDC ).

Shareholders 130

Shareholders Capital Business Development Companies Private Companies 130

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. As a BDC, Ares Capital lends to middle-market businesses. At recent prices, the stock offers a tempting 6.6% at recent prices.

Investing 245

Investing Taxes Legal Capital 245

The Motley Fool

JUNE 14, 2023

Ares Capital: A 10.05% yield Ares Capital (NASDAQ: ARCC) is a business development company, or BDC. These specialized investment vehicles can avoid paying income taxes by distributing at least 90% of their profits to shareholders. 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

MARCH 6, 2024

dividend yield Hercules Capital (NYSE: HTGC) is a business development company (BDC) that specializes in providing capital to venture-backed start-ups. Since Hercules is a BDC, it's required to pay out 90% of its taxable income to shareholders each year in the form of a dividend. Hercules Capital: 10.6% Rithm Capital: 9.1%

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Leveraged Buyouts Initial Public Offering Shareholders Exchange-Traded Funds 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 8, 2024

By comparison, companies that didn't offer a payout to their shareholders produced an average annual return of just 3.95%. 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. billion of its $60.2

Debt 246

Debt Investing Assets Capital 246

The Motley Fool

FEBRUARY 24, 2024

Most American shareholders see their quarterly payments fluctuate with currency exchange rates but the payout has grown every year, in British pounds, since 2007. There are 505 companies in Ares Capital's portfolio and nearly all are backed by private equity sponsors. At recent prices, it offers a 9.8%

Private Equity Firms 246

Private Equity Firms Private Equity Firms Legal Capital 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.

Investing 246

Investing Capital Business Development Companies Asset Management 246

The Motley Fool

DECEMBER 17, 2023

Ares Capital is organized as a business development company (BDC). Regulations require that BDCs return a minimum of 90% of taxable income to shareholders in the form of dividends. I think you can safely bank on that dividend payout at least staying at the current level.

Investing 238

Investing Capital Business Development Companies Prospects 238

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

MAY 5, 2024

Hercules Capital Hercules Capital (NYSE: HTGC) is a business development company ( BDC ) that allows individual investors to take part in the previously elusive world of venture capital investing. It slashed its dividend in 2022 to compensate for the spin-off of its media assets. At recent prices, the stock offers a 6.6%

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The Motley Fool

APRIL 7, 2024

It's the largest publicly traded business development company (BDC). As a BDC, Ares Capital must return at least 90% of its income to shareholders as dividends to be exempt from federal taxes. The company continues to generate plenty of income to return as evidenced by its dividend yield of nearly 9.4%.

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Capital Business Development Companies Prospects Assets 130

The Motley Fool

OCTOBER 19, 2024

Now that it's purely a telecommunications business, investors can expect predictable cash flows supporting its quarterly dividend. AT&T froze its dividend in place after lowering it in 2022 to adjust for the sale of its media assets. yield and there's a good chance the company will soon begin raising its payout again.

Private Equity Firms 130

Private Equity Firms Private Equity Firms Investing Business Development Companies 130

The Motley Fool

AUGUST 25, 2023

Companies that regularly dole out a dividend to their shareholders tend to be profitable on a recurring basis, are time-tested, and can provide investors with transparent long-term growth outlooks. Net-interest margin" refers to the average yield AGNC nets from its owned assets less the average yield on what it's borrowed.

Debt 246

Debt Initial Public Offering Investing Capital 246

The Motley Fool

JUNE 18, 2023

Since their inception in the 1980s by an act of Congress, business development companies (BDCs) have often delivered market-beating total returns for shareholders. There are many different types of investment vehicles that are capable of building wealth for patient investors. Image source: Getty Images. during the year.

Capital 130

Capital Startups Investing Shareholders 130

The Motley Fool

MARCH 25, 2024

Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC). The company provides financing to middle-market businesses with a special focus on the upper end of that market. BDCs are required to return at least 90% of earnings to shareholders in the form of dividends.

Capital 130

Capital Financing Finance Business Development Companies 130

The Motley Fool

JUNE 9, 2024

General Re had acquired New England Asset Management (NEAM) three years earlier. Ares Capital is the largest publicly traded business development company (BDC). Ares and Verizon have been able to reward shareholders so consistently because they both have strong underlying businesses. direct lending market.

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Investors Capital Business Development Companies Asset Management 130

The Motley Fool

JANUARY 6, 2024

The businesses underlying these stocks are still growing thanks to strong advantages over their competitors. AT&T AT&T (NYSE: T) slashed its payout in 2022 following the sale of its media assets, but the company still offers a yield that's miles above average. Shares of the telecom giant offer a juicy 6.5%

Debt 240

Debt Investing Earnings Before Interest Amortization 240

The Motley Fool

NOVEMBER 24, 2023

Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded business development company (BDC) on the market. Its assets under management total $395 billion, with roughly two-thirds of that amount going toward credit financing for middle-market businesses.

Capital 130

Capital Business Development Companies Financing Finance 130

The Motley Fool

SEPTEMBER 18, 2023

Instead, Ares Capital is one of the stocks owned by New England Asset Management (NEAM). Ares Capital ranks as the largest publicly traded business development company (BDC). It provides financing to middle-market businesses that banks sometimes shun. That hasn't been a problem for Ares Capital.

Initial Public Offering 147

Initial Public Offering Conglomerates Debt Capital 147

The Motley Fool

MARCH 17, 2024

But with so many opportunities out there, it's challenging to identify companies that both pay dividends and consistently perform at a high level. One good place to source ideas is to look at business development companies (BDCs). He owns a position in Ares in his secret portfolio -- through New England Asset Management.

Leveraged Buyouts 130

Leveraged Buyouts Exchange-Traded Funds Private Equity Firms Private Equity Firms 130

The Motley Fool

JUNE 23, 2024

AT&T AT&T cut its dividend in 2022 to compensate for the spin-off of its unpredictable media assets. The company hasn't raised the payout since slashing it a couple of years ago, and at recent prices, the telecom stock offers a 6.1% AT&T racked up a lot of debt building out its 5G infrastructure. dividend yield.

Debt 130

Debt Investing Earnings Before Interest Amortization 130

The Motley Fool

DECEMBER 5, 2023

Companies that pay a regular dividend to their shareholders tend to be profitable on a recurring basis and time-tested. These are businesses that have demonstrated their ability to navigate a challenging economic climate and come out stronger on the other side. million of the company's $906.3 To begin with, all but $0.1

Debt 246

Debt Liabilities Capital Assets 246

The Motley Fool

APRIL 5, 2024

The Motley Fool's in-house research team finds that while these investors allocate about 31% of their investable assets to ordinary listed stocks, they allocate an average of 27% of their portfolios to private equity investments. It's officially structured as a business development company, or BDC.

Stakes 130

Stakes Hedge Funds Private Equity Firms Private Equity Firms 130

The Motley Fool

OCTOBER 31, 2024

Baby bonds are issued by the same types of companies that issue traditional bonds, including utility companies, investment banks, telecom companies and other types of corporate issuers. In other words, they're not backed by any underlying assets or collateral.

Due Diligence 100

Due Diligence Investing Bidding Taxes 100