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. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company.

Mergers and Acquisitions 246

Mergers and Acquisitions Exchange-Traded Funds Financial Institutions Banks 246

The Motley Fool

NOVEMBER 1, 2024

Ares Capital ranks as the largest publicly traded business development company (BDC). It provides financing to middle-market businesses. Ares Capital brings scale and expertise that attract middle-market companies looking for capital to grow their businesses. The market for BDCs continues to grow.

Shareholders 243

Shareholders Capital Business Development Companies Taxes 243

The Motley Fool

SEPTEMBER 9, 2024

There are many types of businesses that could benefit from reductions in interest rates. In particular, I've been looking closely at business development companies ( BDCs ). What are business development companies? Moreover, underwriting protocols vary from one company to the next.

Mergers and Acquisitions 246

Mergers and Acquisitions Venture Capital Debt Business Development Companies 246

The Motley Fool

MARCH 2, 2024

Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC). It focuses primarily on providing financing alternatives to the upper end of the middle market. The company's distribution yield stands at 8.6%. However, the company's yield of around 7.5%

New York Stock Exchange 240

New York Stock Exchange Buyout Investing Legal 240

The Motley Fool

DECEMBER 8, 2023

Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded business development company (BDC). It provides financing to middle-market businesses with a special focus on the upper end of this market. The company's dividend has been stable or increased for more than 14 years.

Assets 246

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The Motley Fool

AUGUST 4, 2024

Ares Capital Ares Capital (NASDAQ: ARCC) is a leading business development company (BDC) that provides financing to middle-market businesses. Technically, you'll buy units instead of shares since the midstream energy company is organized as a limited partnership (LP). Its yield of over 7.3%

Initial Public Offering 246

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The Motley Fool

FEBRUARY 16, 2024

Moreover, as a primarily volume-based business, Enterprise is largely protected from the price volatility that's inherent in the oil and gas industry. The company's mostly fee-based revenue tends to hold up well during challenging market environments. Ares is a leading business development company ( BDC ) based in the U.S.

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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. More importantly, the company has a more stringent risk management approach than most of its peers. Rithm Capital is involved in multiple businesses.

Investing 246

Investing Capital Asset Management Business Development Companies 246

Private Equity Wire

MARCH 14, 2025

percentage points over the Secured Overnight Financing Rate (SOFR), was among the most expensive financings at the time, according to SEC filings from business development companies holding the debt. The deal, which carried a spread of 7.25

Finance 45

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The Motley Fool

JULY 5, 2023

Prospect received new financing in May that will likely result in it resuming payments before the end of 2023. yield PennantPark Floating Rate Capital (NYSE: PFLT) is a business development company (BDC), which is another type of entity that can avoid paying taxes by distributing nearly all its profits to shareholders as a dividend.

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The Motley Fool

FEBRUARY 18, 2024

The company's dividend yield of 9.49% would enable you to make well nearly $3,638 in passive income this year. Ares Capital offers such a high yield primarily because of its business structure. Of course, the company must generate plenty of income in the first place to have enough to pay dividends.

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Investing Capital Business Development Companies Taxes 239

The Motley Fool

JULY 27, 2023

Unfortunately, high dividend yields are usually a sign that the stock market has lost confidence in a company's ability to raise its dividend obligation over time. The earnings contraction was disappointing, but the company is still earning more than enough to cover a quarterly dividend set at $0.652 per share.

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Investing Prospects Taxes Capital 245

The Motley Fool

FEBRUARY 1, 2024

According to a report issued last year by the Hartford Funds, in collaboration with Ned Davis Research, dividend-paying companies have generated an annualized return of 9.18% over the past half-century (1973-2022). The company regularly locks in production at favorable prices up to four years in advance.

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The Motley Fool

DECEMBER 4, 2023

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. The company is on pace to achieve a net debt-to-adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) ratio in the 2.5

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The Motley Fool

AUGUST 25, 2023

Companies that regularly dole out a dividend to their shareholders tend to be profitable on a recurring basis, are time-tested, and can provide investors with transparent long-term growth outlooks. annualized return for the public companies that didn't offer a dividend over the same 40-year stretch. That compared to a measly 1.6%

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The Motley Fool

JULY 20, 2023

Publicly traded companies that pay a regular dividend are usually profitable, offer transparent long-term growth outlooks, and are time-tested. In other words, they're businesses that have demonstrated their staying power to investors through thick and thin. 2 that billionaires are selling: Horizon Technology Finance (10.2%

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Debt Finance Financing Assets 189

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 more a company can look into the future and offer accurate forecasts, the more likely Wall Street and investors will reward that business with an increasingly higher market value. The company's 7.5%

Debt 246

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The Motley Fool

JANUARY 4, 2024

A recent study from Ned Davis Research and the Hartford Funds examined the performance of dividend-paying companies to non-payers over a roughly half-century stretch (1973-2022). Companies that pay a regular dividend are typically profitable on a recurring basis, time-tested, and capable of providing transparent long-term growth outlooks.

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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. between 1972 and 2012. annualized return over this same four-decade span.

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The Motley Fool

NOVEMBER 30, 2023

Though a 15% yield is typically viewed as unsustainable for most companies, Annaly has supported an average yield of around 10% over the past two decades and returned $25 billion to shareholders since its initial public offering in 1997. This means financing deals will usually have a premium rate that favors the lender.

Debt 240

Debt Initial Public Offering Leveraging Banks 240

The Motley Fool

JANUARY 2, 2024

According to a study from Ned Davis Research and Hartford Funds, publicly traded companies that initiated and grew their payouts between 1973 and 2022 generated an annualized return of 10.24%. AT&T: 6.61% yield The first top-notch dividend stock that stands out as a no-brainer buy in 2024 is none other than telecom company AT&T (NYSE: T).

Debt 242

Debt Liabilities Capital Stakes 242

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. Hercules Capital: 10.6% Ares Capital: 9.5% Horizon Technology: 11.1%

Leveraged Buyouts 246

Leveraged Buyouts Initial Public Offering Shareholders Exchange-Traded Funds 246

The Motley Fool

FEBRUARY 23, 2024

Ares Capital ranks as the largest publicly traded business development company (BDC). It focuses on providing financing to the upper end of the middle market. This, along with the company's diversified portfolio, means Ares Capital's investments are less risky -- which is good news for long-term investors.

Initial Public Offering 172

Initial Public Offering Capital Business Development Companies Finance 172

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). Horizon Technology Finance: Dividend yield 11.4% Hercules Capital: Dividend yield 10.5%

Leveraged Buyouts 130

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

The Motley Fool

MARCH 25, 2024

Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC). The company provides financing to middle-market businesses with a special focus on the upper end of that market. The company's total return has trounced the S&P 500 over the long run.

Finance 130

Finance Financing Capital Business Development Companies 130

The Motley Fool

JUNE 27, 2023

What happened Contract healthcare manufacturing company Emergent BioSolutions (NYSE: EBS) was looking a bit under the weather as far as its stock was concerned on Tuesday. He will also vacate his position as the company's president. Miller has been serving as an advisor to Emergent for several months, the company said.

Business Development Companies 130

Business Development Companies Finance Financing Banks 130

Private Equity Insights

SEPTEMBER 28, 2023

Centerbridge Partners and Wells Fargo & Company announced they are entering into a strategic relationship focused on direct lending to non-sponsor North American middle market companies. We are excited about our anchor investment in this unique platform.” The British investor has closed.

Funds 130

Funds Finance Financing Capital 130

The Motley Fool

DECEMBER 13, 2024

That hasn't made this business development company ( BDC ) a hit lately, though; its stock has fallen since Nov. Specifically, the item in question was the company's 2024 fiscal fourth-quarter (ended Sept. credit secured by collateral that has primary position among other financing instruments). As of Sept.

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The Motley Fool

JULY 22, 2024

While there are many dividend stocks out there, some of my favorite opportunities are in business development companies (BDC). dividend yield Hercules Technology Growth Capital (NYSE: HTGC) is a BDC that specializes in making high-yield loans to emerging technology businesses. Hercules Technology Growth Capital: 9.1%

Private Equity Firms 130

Private Equity Firms Private Equity Firms Collateral Venture Capital 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. The company has consistently generated significant profits, hence its highly attractive dividend. That hasn't been a problem for Ares Capital.

Initial Public Offering 147

Initial Public Offering Conglomerates Debt Capital 147

Private Equity Wire

APRIL 25, 2024

Consistent with the Firm’s investment philosophy, New Mountain’s private credit strategy focuses on lending to the highest quality companies in select, non-cyclical defensive growth industries. Since inception, New Mountain Capital has invested approximately $15.1bn in credit.

Capital 98

Capital Funds Leveraging Business Development Companies 98

Private Equity Wire

JUNE 5, 2024

The team joins from King & Spalding and includes Jennifer Daly, who was co-head of the global finance and restructuring practice and previously headed the private credit and special situations practice, Roger Schwartz, Matthew Warren, Christopher Boies, Zachary Cochran, Peter Montoni, Geoffrey King, Lindsey Henrikson and Robert Nussbaum.

Law Firms 94

Law Firms Financial Institutions Business Development Companies Finance 94

Private Equity Wire

MARCH 20, 2024

Fowler previously co-led the global private finance group at Barings until 8 March, while Tucker served as Global Head of Operations until his departure in January 2023. Barings will not sit idly by and allow the defendants’ misconduct to occur.” We will continue to fund existing commitments.”

Legal 98

Legal Investing Asset Management Finance 98

The Motley Fool

JUNE 8, 2024

The company has a proven ability to identify projects with superior profit potential. In addition to climate change concerns, the booming demand for artificial intelligence (AI) services is driving companies to step up their investments in clean energy technology. Ares operates as a business development company ( BDC ).

Shareholders 130

Shareholders Business Development Companies Capital Private Companies 130

Private Equity Wire

SEPTEMBER 27, 2023

Centerbridge Partners and Wells Fargo & Company are entering into a strategic relationship to launch a new $5bn private credit fund which will primarily make senior secured loans to non-sponsor-backed middle-market firms in North America.

Funds 97

Funds Business Development Companies Finance Financing 97

The Motley Fool

NOVEMBER 24, 2023

Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded business development company (BDC) on the market. Its assets under management total $395 billion, with roughly two-thirds of that amount going toward credit financing for middle-market businesses.

Business Development Companies 130

Business Development Companies Capital Finance Financing 130

The Motley Fool

FEBRUARY 27, 2024

For some, investing in companies taking advantage of emerging trends, such as artificial intelligence (AI), can be lucrative. However, this approach requires investors to speculate about which companies are best positioned to win long term. In exchange for capital, founders will give up equity in their company.

Leveraged Buyouts 130

Leveraged Buyouts Due Diligence Initial Public Offering Exchange-Traded Funds 130