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. BDCs typically compete with banks and even venture capital or private equity funds depending on the deal structure. Data source: YCharts.

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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. as of Sept. dividend yield at recent prices.

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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 specializes in an instrument called venture debt -- or loans made at high interest rates.

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The Motley Fool

NOVEMBER 30, 2023

In an effort to combat historically high inflation that briefly surpassed an annualized rate of 9% in June 2022, the nation's central bank has raised its federal funds rate at the fastest pace in more than four decades. BDCs are businesses that invest in the debt and/or equity (common and preferred stock) of middle-market companies.

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The Motley Fool

JULY 16, 2024

PennantPark Floating Rate Capital: 10.31% yield A second super safe ultra-high-yield monthly payer that can help you bring home $1,000 in monthly income from a starting investment of $121,000 that's been split three ways is business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). is well above average.

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The Motley Fool

SEPTEMBER 7, 2023

Shares of the phone and internet service provider have fallen about 23% in 2023 as investors worry about a high debt load and potential litigation regarding lead-lined cables. 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.

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The Motley Fool

AUGUST 13, 2024

This under-the-radar 11%-yielding stock makes for a phenomenal buy during periods of panic Should the stock market tumble, the virtually unknown ultra-high-yielding stock I'm looking to triple my position in is business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). For example, the company's $1.66

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The Motley Fool

MARCH 28, 2024

PennantPark Floating Rate Capital: 10.91% yield The second ultra-high-yield stock that can help you generate $300 in super safe monthly dividend income from a beginning investment of $43,000 split two ways is completely under-the-radar business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). Since Sept.

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The Motley Fool

SEPTEMBER 4, 2024

Time to pounce: PennantPark Floating Rate Capital (10.88% yield) A second electrifying ultra-high-yield dividend stock that income-seeking investors should strongly consider pouncing on in September is little-known business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). As of June 30, PennantPark's $1.45

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The Motley Fool

SEPTEMBER 23, 2024

Ares Capital Ares Capital is a business development company ( BDC ), which means it can legally avoid paying income taxes by distributing nearly all its profit to shareholders as a dividend. For decades now, American banks have been increasingly hesitant to lend money directly to midsize businesses.

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The Motley Fool

JANUARY 6, 2024

There was $129 billion in net debt on AT&T's balance sheet at the end of September, which isn't as frightening as it might seem. The company expects to achieve a manageable net debt-to-adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA) ratio of 2.5 million in net unsecured debt.

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The Motley Fool

FEBRUARY 8, 2024

PennantPark Floating Rate Capital: 11.02% yield A second ultra-high-yield stock that can help you bring home $300 each month from an initial investment of $32,000 (split three ways) is business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). The company raised its monthly payout twice last year.

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The Motley Fool

DECEMBER 4, 2023

AT&T finished September with $129 billion in net debt. 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. 30 and it's using these profits to reduce debt. AT&T generated $19.8 yield at recent prices.

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The Motley Fool

SEPTEMBER 23, 2023

Ares Capital Corporation: Ultra-high yield and mild growth Ares Capital Corporation (NASDAQ: ARCC) is a business development company ( BDC ), which means it can avoid paying income taxes by delivering at least 90% of its earnings to investors as a dividend. At recent prices, Ares Capital offers a huge 10.1%

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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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The Motley Fool

JULY 14, 2023

Morgan Asset Management, a division of money-center bank JPMorgan Chase , released a report that compared the performance of publicly traded companies that didn't pay a dividend to those that initiated and grew their payouts between 1972 and 2012. million in common and preferred stock, it's predominantly a debt-focused BDC, with $1.01

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The Motley Fool

AUGUST 28, 2024

First of all, the nation's central bank is widely expected to kick off a rate-easing cycle in September. The goal for BDCs is to generate income by investing in the equity (preferred or common stock) and/or debt of middle-market companies -- i.e., small- and micro-cap businesses that are largely unproven. Since Sept.

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The Motley Fool

MAY 2, 2024

Time to pounce: PennantPark Floating Rate Capital (10.82% yield) A second ultra-high-yield dividend stock that's begging to be bought in May is off-the-radar business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). billion) is tied up in debt securities. billion) is tied up in debt securities.

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The Motley Fool

SEPTEMBER 18, 2023

The company has raised its dividend payout for 17 straight years. Soaring interest rates have the market worried that Verizon's debt load could become too much of a burden. Steady cash flow generation and declining capital expenditures suggest its debt load will be manageable. Shares of Verizon offer a huge 7.7%

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The Motley Fool

DECEMBER 27, 2023

Ares Capital Ever since the Great Recession , America's largest banks mostly stopped lending to middle-market companies regardless of their ability to generate cash and make interest payments. The average yield it received on debt investments during its fiscal Q4 that ended Sep. ARCC Dividend data by YCharts. 30 surged to 12.6%

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The Motley Fool

FEBRUARY 22, 2024

BDCs are companies that invest in the debt or equity (common and preferred stock) of middle-market businesses (i.e, generally small and unproven companies). billion in debt securities held means it's primarily a debt-focused BDC. The answer to "Why focus on debt for unproven businesses?"

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The Motley Fool

FEBRUARY 16, 2024

Ares is a leading business development company ( BDC ) based in the U.S. As a direct lender, it supplies the capital that private companies need to fund and grow their operations. Ares typically serves established businesses with revenue of $10 million to $1 billion. Ares spread its $22.9

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The Motley Fool

DECEMBER 16, 2023

PennantPark Floating Rate Capital Ever since the Great Recession , large American banks subject to stricter regulations have been hesitant to lend to middle-market businesses. The company generated $8.5 As its name implies, PennantPark Floating Rate Capital is a lender that almost always lends at variable interest rates.

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The Motley Fool

MAY 5, 2024

As the largest publicly traded business development company ( BDC ) in the U.S., Ares provides private companies with the cash they need to expand. It specializes in loans to "middle-market" businesses that typically have sales of between $10 million and $1 billion. The BDC leader's $22.9

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The Motley Fool

AUGUST 11, 2023

Approximately 10 years ago, the wealth management division of money-center bank JPMorgan Chase , J.P. A BDC is a company that invests in either the equity (common or preferred stock) or debt of middle-market businesses. By "middle-market business," I'm referring to companies with microcap or small-cap valuations.

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The Motley Fool

DECEMBER 5, 2023

AT&T closed out the September quarter with $138 billion in total debt. Discovery , this new media entity assumed certain lots of debt that AT&T had previously held. 30, 2023, AT&T's net debt fell from $169 billion to $128.7 million in debt securities it holds makes it a primarily debt-focused BDC.

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Private Equity Wire

OCTOBER 9, 2023

The Bank of America has speculated that defaults in corporate private credit will exceed those in the syndicated loan market next year if interest rates remain consistently higher, as reported by Bloomberg.

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The Motley Fool

MAY 4, 2024

Ares Capital Ares Capital (NASDAQ: ARCC) is America's largest business development company ( BDC ). BDCs exist because big American banks generally aren't willing to lend to middle-market businesses, regardless of their ability to generate cash and pay their bills. on its debt-related securities.

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Capital Business Development Companies Taxes Debt 245

The Motley Fool

OCTOBER 21, 2024

Ares Capital Ares Capital is the world's largest publicly traded business development company, or BDC. banks that have been dialing back their direct lending operations for decades. The midsize businesses Ares lends to are willing to borrow at higher rates than you might expect. in the second quarter.

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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. The average return on Ares Capital's debt investments rose to 12.5% last year from 11.6%

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The Motley Fool

APRIL 5, 2024

Ares Capital Ares Capital is America's largest publicly traded business development company ( BDC ). For decades, American banks have been increasingly hesitant to lend to mid-market businesses, which by definition generate between $10 million and $1 billion in annual revenue. in the fourth quarter of 2023.

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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. This makes growth a challenge, but the company raised its payout by 20% over the past three years. At recent prices, it offers a 9.5% dividend yield.

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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. At the end of March, 87% of its loan portfolio was first-lien senior secured debt.

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The Motley Fool

AUGUST 23, 2024

Hercules Capital Hercules Capital (NYSE: HTGC) is a business development company (BDC) that specializes in high-yield loans to venture-backed companies. Generally speaking, a bank may avoid making a loan to a young company. Generally speaking, a bank may avoid making a loan to a young company.

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Exchange-Traded Funds Banks Capital Business Development Companies 246

The Motley Fool

JUNE 27, 2023

yield Unlike the telecom stocks on this list, PennantPark Floating Rate Capital (NYSE: PFLT) is a business development company (BDC). Like most BDCs, PennantPark focuses on mid-sized companies that the big banks generally aren't willing to work with. on its debt instruments.

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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. The company's total returns have trounced the S&P 500 through the years. How can Ares Capital pay such a juicy dividend yield?

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The Motley Fool

JULY 20, 2023

In other words, they're businesses that have demonstrated their staying power to investors through thick and thin. Morgan Asset Management, a division of money-center bank JPMorgan Chase , publicly traded companies that initiated and grew their payouts between 1972 and 2012 produced an annualized return of 9.5%. from 12.4%

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