The Motley Fool

AUGUST 13, 2024

This is to say that an expanding economy has needed more capital to facilitate transactions. A BDC is a company that invests in the debt or equity (common and/or preferred stock) of middle-market businesses -- i.e., generally unproven small- and micro-cap companies. weighted average yield on debt investments.

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Stakes Stock Market Stock Market Debt 246

The Motley Fool

SEPTEMBER 23, 2024

Ares Capital (NASDAQ: ARCC) and PennantPark Floating Rate Capital (NYSE: PFLT) offer an average yield of 10.5% 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.

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The Motley Fool

AUGUST 23, 2023

Investors are more than a little concerned with a debt load of about $143 billion. 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. at the end of June from just 7.7%

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The Motley Fool

JULY 13, 2023

Stag Industrial specializes in buying commercial industrial properties from businesses, which are often leased back to those very same businesses. This is enticing to clients because they aren't limited in how they can use capital proceeds to benefit their business, whether for debt reduction or further growth.

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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). Likewise, 99.9%

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The Motley Fool

AUGUST 3, 2024

Investors who are nearing retirement, or simply eager to boost their passive income stream, may want to turn toward Pfizer (NYSE: PFE) and Ares Capital (NASDAQ: ARCC). Ares Capital Corporation Ares Capital is a business development company, or BDC. over the past five years. For decades, U.S. a year earlier.

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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

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

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. PennantPark Floating Rate Capital's $1.1

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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. Hercules Capital: 11.5% Ares Capital: 9.6% The company's 9.6%

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Mergers and Acquisitions Leveraged Buyouts Due Diligence Portfolios 246

The Motley Fool

AUGUST 28, 2024

Companies that regularly share a percentage of their profits with investors are usually time-tested and recurringly profitable. Based on a separate study from Mellon Capital that was released in the mid-2010s, high-yielding dividend stocks are sometimes more trouble than they're worth. billion of which was tied to debt securities.

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The Motley Fool

FEBRUARY 4, 2024

Acquiring properties that you rent to others is a popular one, but acquiring rental properties often requires more capital than most investors are prepared to commit. Ares Capital Ares Capital (NASDAQ: ARCC) is America's largest publicly traded business development company ( BDC ). as of Sept.

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The Motley Fool

AUGUST 25, 2023

PennantPark Floating Rate Capital: 11.75% yield A second ultra-high-yield dividend stock that can provide $200 in super safe annual-dividend income from an initial investment of just $1,750 (split equally, three ways) is under-the-radar business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT).

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The Motley Fool

JUNE 23, 2023

yield isn't a typo, with the company parsing out a double-digit yield in 13 of the past 14 years. Mortgage REITs are businesses that aim to borrow money at the lowest short-term lending rate possible and use this capital to purchase higher-yielding long-term assets. billion in debt investment is of the variable-rate variety.

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Debt Investing Asset Management Assets 246

The Motley Fool

OCTOBER 24, 2024

One such stock that has been attracting a lot of attention is Ares Capital (NASDAQ: ARCC) , which at its current share price yields a massive 8.9%. Why does Ares Capital pay such a high dividend? It invests between $30 million and $500 million in debt and equity in each company. Should you invest in it today?

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Capital Debt Amortization Depreciation 130

The Motley Fool

MAY 2, 2024

Following the closure of its Spirit Realty Capital acquisition in January, it held over 15,450 CRE properties. Here's the kicker: Approximately 89% of the total rent tied to these properties is "resilient to economic downturns and/or isolated from e-commerce pressures," per the company. billion) is tied up in debt securities.

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Debt Exchange-Traded Funds Public Companies Capital 243

The Motley Fool

MARCH 28, 2024

Realty Income completed the acquisition of Spirit Realty Capital in January for $9.3 A BDC is a business that invests its capital into the equity (common and/or preferred stock) or debt of middle-market companies -- i.e., generally unproven micro- and small-cap businesses. billion in secured debt.

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Debt Investing Exchange-Traded Funds Capital 246

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).

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Debt Investing Assets Banks 245

The Motley Fool

FEBRUARY 1, 2024

Discovery , AT&T earned more than $40 billion in concessions -- most of which involved the new media entity taking on select debt lots previously held by AT&T. Since March 31, 2022, AT&T's net debt has declined from $169 billion to $128.9 million in net debt, its net-leverage ratio is a modest 0.31. yield is safe.

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The Motley Fool

NOVEMBER 30, 2023

Annaly Capital Management: 14.81% yield One surefire way to receive more than triple the yield of long-term Treasury bonds is to purchase shares of mortgage real estate investment trust (REIT) Annaly Capital Management (NYSE: NLY). One of the biggest tailwinds for Annaly Capital Management is the Fed's quantitative tightening measures.

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Debt Initial Public Offering Leveraging Banks 240

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

APRIL 20, 2024

One type of business that income-focused investors might have come across is the business development company (BDC) , which invests in the debt and equity of middle-market companies. And about 96% of its debt investments are at floating rates. About 96% of its debt portfolio is floating rate.

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The Motley Fool

JULY 14, 2023

The uncertainty of the pandemic coerced global energy majors to reduce their capital expenditures (capex). yield about as rock-solid as they come for ultra-high-yield companies. PennantPark has the highest yield among the three companies listed here (11.4%) and doles out its payout on a monthly basis. Further, all but $0.1

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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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Investing Debt Amortization Depreciation 240

The Motley Fool

APRIL 16, 2024

Billionaire hedge fund manager Ken Griffin more than tripled Citadel Advisors' position in Hercules Capital (NYSE: HTGC) during the last three months of 2023. 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.

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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. As its name implies, PennantPark Floating Rate Capital is a lender that almost always lends at variable interest rates. The company generated $8.5

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Debt Investing Capital Business Development Companies 246

The Motley Fool

AUGUST 11, 2023

Without getting too far into the weeds, mortgage REITs like AGNC aim to borrow money at low short-term rates and use this capital to purchase higher-yielding, longer-duration assets, such as mortgage-backed securities (MBS). This leverage also supports the company's juicy payout. PennantPark Floating Rate Capital: 10.8%

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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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The Motley Fool

NOVEMBER 23, 2023

It's also the key cog that fuels acquisitions and the company's steady growth in its base annual distribution. Years of reduced capital spending during the COVID-19 pandemic, coupled with Russia's ongoing war with Ukraine, will make it difficult to increase worldwide oil supply anytime soon. million in debt securities.

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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. This BDC's costs of capital are rising too, but not quite as fast.

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Banks Amortization Debt Capital 243

The Motley Fool

OCTOBER 21, 2024

The average dividend payer in the S&P 500 index might be unappealing, but there are underappreciated businesses with ultra high dividend yields waiting for income-seeking investors to scoop them up. Ares Capital (NASDAQ: ARCC) , and EPR Properties (NYSE: EPR) offer yields above 8% at recent prices. At recent prices, it offers an 8.9%

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The Motley Fool

JUNE 15, 2023

Now that some of that risk has been alleviated , the company has a pretty good chance to continue meeting its dividend obligation. Ares Capital: a 10.34% yield Ares Capital (NASDAQ: ARCC) is a business development company, or BDC. in the first quarter. of the total investment portfolio at amortized cost.

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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. Agency" securities are backed by the federal government in the event of default and provide an added layer of protection for the company's investments. As of Sept.

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The Motley Fool

JANUARY 2, 2024

Legacy telecom companies are lugging around quite a bit of debt on their balance sheets. Discovery , AT&T was sitting on $169 billon in net debt. Discovery assumed certain lots of debt previously held by AT&T. If you're wondering why the company chose to veer toward debt investments, the answer is yield.

Debt 242

Debt Liabilities Capital Business Development Companies 242

The Motley Fool

JANUARY 4, 2024

It's also in the process of acquiring Spirit Realty Capital in an all-share deal that clocks in at $9.3 Spirit Realty's CRE portfolio will complement Realty Income's existing assets, while allowing the combined company to further diversify beyond retail. million in debt from middle-market businesses. As of Sept.

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Debt Investing Assets Capital 246

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. In the third quarter, 69% of Ares Capital's portfolio was earning interest at floating rates that grew significantly. in Q3 from 9.6%

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The Motley Fool

MAY 5, 2024

Ares Capital If you'd like to build an even larger passive income stream, take a look at Ares Capital (NASDAQ: ARCC). As the largest publicly traded business development company ( BDC ) in the U.S., Ares provides private companies with the cash they need to expand. The BDC leader's $22.9

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