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.

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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.

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The Motley Fool

APRIL 28, 2024

Let's break down five companies that are established dividend payers, and assess why holding each of these stocks over a long-term time horizon can lead to massive gains for your portfolio. Hercules Capital Hercules Capital (NYSE: HTGC) is a business development company (BDC).

Leveraged Buyouts 244

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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

JUNE 20, 2024

Companies that are profitable on a recurring basis, have proven they can navigate economic downturns, and are capable of providing transparent long-term growth outlooks are precisely the type of businesses that investors expect to increase in value over the long run. For instance, the company depends on a strong U.S. since Sept.

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The Motley Fool

SEPTEMBER 30, 2024

Ares Capital Ares Capital is the world's largest publicly traded business development company ( BDC ). These specialized entities are popular among income-seeking investors because they can avoid paying income taxes by distributing nearly all of their earnings to shareholders in the form of dividend payments.

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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. These specialty financiers fill the gap left by U.S.

Legal 244

Legal Capital Business Development Companies Taxes 244

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. PennantPark and similar BDCs make loans to midsized businesses that big banks tend to ignore. This BDC pays dividends monthly.

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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. Hercules is different from a typical bank as it tends to offer more flexible financing options. As such, shareholders have cheered the stock for quite some time.

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Leveraged Buyouts Initial Public Offering Shareholders Exchange-Traded Funds 246

The Motley Fool

MARCH 2, 2024

Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC). The BDC industry has grown significantly because many banks have shied away from these opportunities. As a BDC, Ares Capital must return at least 90% of its taxable income to shareholders in the form of dividends.

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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. over the past five years.

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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. billion portfolio is spread across 130 portfolio companies. Image source: Getty Images.

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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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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

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. BDCs are required to pay out 90% of their taxable income to investors each year.

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Mergers and Acquisitions Leveraged Buyouts Due Diligence Portfolios 246

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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The Motley Fool

FEBRUARY 19, 2024

This is a business development company ( BDC ), which means it can legally avoid paying income taxes by distributing nearly all its profits to shareholders as a dividend. As a BDC, Ares Capital lends to middle-market businesses. at recent prices.

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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. The nation's central bank has officially shifted to a rate-easing cycle, which is expected to reduce short-term borrowing costs. Image source: Getty Images. PennantPark Floating Rate Capital: 10.4%

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The Motley Fool

DECEMBER 17, 2023

I think you can safely bank on that dividend payout at least staying at the current level. 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.

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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. British American Tobacco Cigarette sales volumes have been declining for decades, but British American Tobacco (NYSE: BTI) still raises its dividend consistently.

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The Motley Fool

JULY 27, 2023

Verizon An investment of $43,800 is enough to generate $3,333 in annual dividend income from Verizon (NYSE: VZ) at the moment, plus the company's known for steadily raising its payout. yield, and shareholders can reasonably expect another bump in a couple of months. At recent prices, the stock offers a big 7.6%

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The Motley Fool

SEPTEMBER 18, 2023

These businesses aren't flashy, but they do produce reliable profits. Plus, they're committed to distributing earnings to their shareholders. If we ignore a few exceptions in 2018, the company has maintained or raised its monthly payout since it began distributing dividends in 2011. Image source: Getty Images. and higher.

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The Motley Fool

MAY 2, 2024

On the other side of the coin, publicly traded companies that don't offer a payout trudged their way to a more modest 4.27% annualized return between 1973 and 2023 and did so while being 18% more volatile than the S&P 500. In other words, they're just the type of businesses that are expected to increase in value over an extended timeline.

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Debt Exchange-Traded Funds Public Companies Capital 243

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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Debt Initial Public Offering Leveraging Banks 240

The Motley Fool

JANUARY 6, 2024

As one of three giant telecom businesses in America, there's a very good chance that rising broadband revenues will allow it to keep raising that payout for at least another decade. Ares Capital Ares Capital (NASDAQ: ARCC) is a business-development company ( BDC ) that offers a huge 9.4% yield at recent prices.

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Investing Debt Amortization Depreciation 240

The Motley Fool

JULY 14, 2023

Companies that offer a regular payout to their shareholders are usually profitable on a recurring basis and time-tested. PennantPark has the highest yield among the three companies listed here (11.4%) and doles out its payout on a monthly basis. Roughly 10 years ago, J.P.

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Debt Investing Asset Management Capital 246

The Motley Fool

MAY 7, 2024

Investors eager to bulk up their passive income streams can do so without breaking the bank. These three stand out because their underlying businesses appear capable of meeting their current obligations and raising their yields higher in the years ahead. at recent prices. Currently, investors are entitled to $0.08

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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%. The company raised its monthly payout twice last year. Without getting too far into the weeds, BDCs make money by investing in the equity (common and preferred stock) and/or debt of middle-market companies.

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Debt Investing Assets Capital 246

The Motley Fool

OCTOBER 24, 2024

Ares Capital is a business development company ( BDC ) that provides financing for middle-market companies (businesses that generate between $10 million and $250 million in earnings before interest, taxes, depreciation, and amortization ( EBITDA ) every year). Should you invest in it today?

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Capital Debt Amortization Banks 130

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). You might be wondering what makes Hercules stand out from a traditional bank.

Leveraged Buyouts 130

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

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. Loans representing just 1.3% at the end of June.

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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. Over the trailing two years, ended Sept.

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The Motley Fool

JUNE 14, 2024

Shares of this business development company boast a trailing dividend yield of a little over 8%, in fact, and that's based on just its ordinary quarterly payout. Sometimes these funds are offered in exchange for equity in the company in question. Like dividends? How Hercules Capital is different. Chart by author.

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Capital Business Development Companies Stakes Prospects 130

The Motley Fool

FEBRUARY 22, 2024

Dividend stocks may not be highfliers like the " Magnificent Seven " but can generally increase in value over time and make their patient shareholders richer. 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).

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Debt Investing Capital Business Development Companies 230

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. Ares operates as a business development company ( BDC ). Middle-market companies collectively generate over $10 trillion in annual sales in the U.S. Therein lies Ares' opportunity.

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Shareholders Business Development Companies Capital Private Companies 130

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. These companies are often caught in limbo. They're reasonably well established compared to startups. and dividends per share paid of $1.87

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Capital Startups Investing Shareholders 130

The Motley Fool

SEPTEMBER 18, 2023

Ares Capital ranks as the largest publicly traded business development company (BDC). It provides financing to middle-market businesses that banks sometimes shun. There's a risk, though, that earnings fluctuations could result in dividend cuts.

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