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. Should you invest $1,000 in Hercules Capital right now? About 96% of its debt portfolio is floating rate.

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Capital Initial Public Offering Collateral Debt 130

The Motley Fool

JANUARY 6, 2024

The company expects to achieve a manageable net debt-to-adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA) ratio of 2.5 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.

Investing 240

Investing Debt Amortization Depreciation 240

The Motley Fool

AUGUST 23, 2023

A yield trap can come about for a few reasons, including a burdensome debt load, a declining business, or an elevated dividend payout ratio. Sporting a whopping 10% dividend yield, investors may initially think that the business development company ( BDC ) Ares Capital (NASDAQ: ARCC) is a yield trap.

Capital 130

Capital Amortization Depreciation Debt 130

The Motley Fool

FEBRUARY 1, 2024

With global energy companies forced to slash their capital expenditures due to unprecedented demand uncertainty, it's coal that's stepped in to fill the production void and meet growing global demand needs. I'm talking about smaller, generally unproven private companies. However, the COVID-19 pandemic changed everything.

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Debt Investing Liabilities Private Companies 246

The Motley Fool

MARCH 6, 2024

Hercules Capital: 10.6% dividend yield Hercules Capital (NYSE: HTGC) is a business development company (BDC) that specializes in providing capital to venture-backed start-ups. Ares Capital: 9.5% dividend yield Another BDC on my list is Ares Capital (NASDAQ: ARCC). Rithm Capital: 9.1%

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Leveraged Buyouts Initial Public Offering Shareholders Exchange-Traded Funds 246

The Motley Fool

AUGUST 10, 2024

A stock market sell-off isn't great for the performance of stocks already in your portfolio, but it's creating opportunities to buy shares of terrific dividend-paying businesses at a relative discount. At recent prices, Pfizer (NYSE: PFE) , PennantPark Floating Rate Capital (NYSE: PFLT) , and Ares Capital (NASDAQ: ARCC) offer an 8.9%

Investing 130

Investing Amortization Depreciation Earnings Before Interest 130

The Motley Fool

JUNE 23, 2024

Investors who are attracted to truly passive income generation may want to consider AT&T (NYSE: T) , PenantPark Floating Rate Capital (NYSE: PFLT) , and Pfizer (NYSE: PFE). At the end of March, the company's net debt level was 2.9 At recent prices, PennantPark Float Rate Capital offers a huge 10.7% dividend yield.

Debt 130

Debt Investing Amortization Depreciation 130

The Motley Fool

DECEMBER 28, 2024

During the past three years, Ares Capital 's (NASDAQ: ARCC) stock has risen about 6%. That's because Ares is a business development company (BDC) that mainly focuses on paying high dividends to income-oriented investors. Let's review its business model, growth rates, and valuations to decide. Net of available cash.

Capital 246

Capital Debt Assets Banks 246

The Motley Fool

FEBRUARY 8, 2025

Ares Capital 's (NASDAQ: ARCC) stock has increased only about 40% during the past 10 years. What does Ares Capital do? It aims to invest $30 million to $500 million in debt and equity in those companies. To dilute its overall risk, Ares Capital spreads its investments across 535 companies. Net of available cash.

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Capital Debt Assets Amortization 219

The Motley Fool

MARCH 16, 2025

Ares Capital (NASDAQ: ARCC) , a business development company (BDC) that pays out most of its profits as dividends, went public in October 2004 at $15 a share. How does Ares Capital make money? Ares usually invests anywhere from $30 million to $500 million in debt and equity in each company.

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Capital Debt Taxes Venture Capital 130

The Motley Fool

DECEMBER 31, 2024

See the 10 stocks Dividend yields among most S&P 500 stocks aren't appealing, but there are a few business development companies (BDCs) that deserve more attention from income-seeking investors than they've been getting. Ares Capital Ares Capital is the largest BDC with shares that trade on public markets.

Investing 246

Investing Amortization Depreciation Capital 246

The Motley Fool

JANUARY 18, 2025

At recent prices, Realty Income (NYSE: O) , PennantPark Floating Rate Capital (NYSE: PFLT) , and Ares Capital (NASDAQ: ARCC) offer a yield of 8.5% PennantPark Floating Rate Capital Direct lending between traditional banks and midsized American businesses hardly exists anymore. on average. during the third quarter.

Investing 244

Investing Amortization Depreciation Capital 244

The Motley Fool

JANUARY 1, 2025

Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC). As a BDC, Ares provides financing primarily to middle-market businesses with market caps between $100 million and $1 billion. Ares Capital is no exception with its forward dividend yield of 8.72%.

Investing 130

Investing Taxes Amortization Depreciation 130

The Motley Fool

DECEMBER 23, 2024

Walgreens Boots Alliance (NASDAQ: WBA) and PennantPark Floating Rate Capital (NYSE: PFLT) offer yields above 10% at recent prices. Before opening your brokerage application to buy these stocks, it's important to remember dividend yields usually don't climb this high unless investors are worried about the underlying businesses.

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Portfolios Financial Institutions Amortization Depreciation 130