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Investing $100,000 in These 3 Ultra-High-Yield Dividend Stocks Could Bring $10,000 in Passive Income to Your Portfolio in 2024

The Motley Fool

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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Looking For Passive Income? Here Are 5 Ultra-High-Yield Dividend Stocks to Buy and Hold For a Decade

The Motley Fool

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).

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Investing $50,000 Into These Ultra-High-Yield Dividend Stocks Could Make You Nearly $5,200 in Annual Income

The Motley Fool

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). For instance, Hercules and Horizon usually offer revolving or term loans.

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3 Ultra-High-Yield Dividend Stocks to Buy Hand Over Fist Right This Instant

The Motley Fool

Business development companies (BDC) can be particularly good sources of dividend income, paying above market returns. There are many companies in need of capital or advisory services, but they are not big enough or deemed suitable by investment banks. This is where Ares comes into the equation.

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Want to Make $10,000 in Passive Income This Year? Invest $100,000 in These 3 Ultra-High-Yield Dividend Stocks.

The Motley Fool

While many companies pay dividends, business development companies (BDCs) represent a unique and potentially lower-risk way of adding substantial passive income to your portfolio. This can require lots of effort when it comes to performing due diligence, and there's always the risk that you could be wrong.

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Ares Faces Its Biggest Decision Yet: Stick With Private Credit or Become an Alts Supermarket

Private Equity Insights

Lately, much attention has been lavished on Ares Capital, the unit created in 2004 to provide financing for middle-market acquisitions, recapitalizations, and leveraged buyouts. The Ares portfolio is diversified across 466 borrowers backed by 222 private equity sponsors that invest in those borrowers’ equity.

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Private Equity's Creative Wizardry Posing Systemic Risk?

Pension Pulse

Whereas Kleinman went in hard with his warning that “everything is not going to be okay” for buyout firms, Stavros joined in with the concession that his industry may have gotten “too creative” lately. When buyout groups do look to sell, PIKs, NAV loans and other kinds of excess baggage are creating obstacles.

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