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. As a BDC, Ares must return at least 90% of its earnings to shareholders in the form of dividends to be exempt from federal income taxes. The market for BDCs continues to grow.

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Shareholders Capital Business Development Companies Taxes 243

The Motley Fool

APRIL 16, 2024

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. Its investments include a mixed bag of successful companies, including Axsome Therapeutics , Palantir Technologies , and Transmedics Group.

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Portfolios Hedge Funds Capital Business Development Companies 246

The Motley Fool

APRIL 5, 2024

The swift loss of sales for Paxlovid and Comirnaty led to an earnings contraction, but it didn't affect the company's dividend payout raising streak. That's heaps more than the company needs to meet its dividend commitment, which is currently set at $1.68 At its recently beaten-down price, the stock offers an eye-popping 6.1%

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The Motley Fool

MAY 4, 2024

Among companies that reported recently are a handful of dividend-paying businesses that offer dividend yields above 4% at recent prices. CVS Health Shares of CVS Health (NYSE: CVS) recently tanked about 16% after the company issued a downward guidance revision. In 2023, the company earned U.S. dividend yield.

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Capital Business Development Companies Taxes Debt 245

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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Investing Legal Stock Exchanges Debt 246

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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Investors Debt Professional Services Stakes 245

The Motley Fool

JUNE 25, 2024

AbbVie's stock price has been under pressure because the company lost patent-protected exclusivity for Humira in the U.S. Ares Capital Ares Capital is a business development company ( BDC ) that offers a huge 9.3% The company's raised its dividend payout by 16.1% sales that reached $18.6 billion in 2022.

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Amortization Depreciation Capital Business Development Companies 246

The Motley Fool

AUGUST 3, 2024

It's a well-documented fact that companies committed to distributing their profits usually outperform companies that don't have a dividend program. If we exclude rapidly declining sales related to the company's COVID-19 products, though, revenue soared by 14% year over year. billion and could climb much higher. For decades, U.S.

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The Motley Fool

DECEMBER 4, 2023

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 PennantPark Floating Rate Capital PenantPark Floating Rate Capital (NYSE: PFLT) is a business development company ( BDC ) that offers investors a huge 10.9%

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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. They are also popular with income-seeking investors because they can legally avoid paying income taxes by distributing nearly all their profits to shareholders as dividends. At recent prices, it offers an 8.9%

Legal 244

Legal Capital Business Development Companies Taxes 244

The Motley Fool

JANUARY 6, 2024

AT&T AT&T (NYSE: T) slashed its payout in 2022 following the sale of its media assets, but the company still offers a yield that's miles above average. The company expects to achieve a manageable net debt-to-adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA) ratio of 2.5

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Investing Debt Amortization Depreciation 240

The Motley Fool

OCTOBER 20, 2024

Companies like Archer-Daniels-Midland (NYSE: ADM) , Hercules Capital (NYSE: HTGC) , and Royalty Pharma (NASDAQ: RPRX) are raising their payouts rapidly. As a BDC, Hercules Capital can avoid income taxes by distributing at least 90% of profits to shareholders as a dividend. Profits are down, but ADM still generated $3.16

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The Motley Fool

DECEMBER 24, 2023

Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded business development company (BDC). To be exempt from paying federal taxes, BDCs must return at least 90% of their income to shareholders in the form of dividends. The company continues to generate strong earnings. I think so.

Capital 239

Capital Business Development Companies Taxes Shareholders 239

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.

Shareholders 246

Shareholders Assets Business Development Companies Taxes 246

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. Investors could be rewarded in another way.

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Investing Capital Asset Management Business Development Companies 246

The Motley Fool

AUGUST 23, 2023

Unfortunately, stocks don't offer high yields until most investors have concerns about their underlying businesses. The companies in this list face challenges that have pressured their stock prices and resulted in yields that are far above average. AT&T's dividend payment chewed up just 44.6% Its average deposit balance of $1.9

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Banks Debt Legal Business Development Companies 246

The Motley Fool

JULY 18, 2024

Most dividend-paying companies in the U.S. However, for investors looking for more frequent payouts to help supplement their income, there are some companies that pay out their dividends on a monthly basis. The company recently announced a $0.263 dividend for July, which is good for a 5.6% overall, including 8.2% in June.

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Amortization Depreciation Earnings Before Interest Leveraging 241

The Motley Fool

JUNE 14, 2023

Ares Capital: A 10.05% yield Ares Capital (NASDAQ: ARCC) is a business development company, or BDC. These specialized investment vehicles can avoid paying income taxes by distributing at least 90% of their profits to shareholders. That's right -- they think these 10 stocks are even better buys.

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Banks Amortization Debt Capital 243

The Motley Fool

SEPTEMBER 7, 2023

Holding a company liable if it followed prevailing regulations seems like an uphill battle that the U.S. 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. By the first half of 2025, the company expects net debt to fall to just 2.5x

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Exchange-Traded Funds Debt Amortization Depreciation 246

The Motley Fool

SEPTEMBER 18, 2023

The company has raised its dividend payout for 17 straight years. Earlier this month, the company announced its 17th consecutive annual dividend raise. If we ignore a few exceptions in 2018, the company has maintained or raised its monthly payout since it began distributing dividends in 2011. dividend yield. a year earlier.

Investing 243

Investing Debt Legal Capital 243

The Motley Fool

FEBRUARY 24, 2024

Luckily for income-seeking investors, the noncash charges won't affect the company's ability to steadily raise its dividend commitment. Ares Capital Ares Capital (NASDAQ: ARCC) is a business development company ( BDC ), which means it lends to companies that are too big for small business loans but still too small to work with large banks.

Private Equity Firms 246

Private Equity Firms Private Equity Firms Legal Capital 246

The Motley Fool

MARCH 2, 2024

Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC). Energy Transfer Energy Transfer (NYSE: ET) is a large midstream energy company that operates pipelines, storage facilities, and more. The company's distribution yield stands at 8.6%. isn't shabby at all.

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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.

Investing 239

Investing Capital Business Development Companies Taxes 239

The Motley Fool

OCTOBER 22, 2024

With thousands of publicly traded companies and exchange-traded funds (ETFs) to choose from, there is no one-size-fits-all strategy that you'll have to stick to. Companies that dole out a dividend to their shareholders on a regular basis tend to be recurringly profitable and time-tested. Image source: Getty Images. For instance, 99.9%

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Debt Initial Public Offering Exchange-Traded Funds Capital 246

The Motley Fool

JANUARY 19, 2024

Moreover, the well-established businesses underlying these stocks are positioned to raise their quarterly payouts in the years ahead. Altria Group Altria Group (NYSE: MO) is the tobacco company that markets the leading Marlboro brand in America. Ares Capital Ares Capital (NASDAQ: ARCC) is a business development company ( BDC ).

Investing 231

Investing Legal Banks Capital 231

The Motley Fool

NOVEMBER 10, 2024

Ares Capital is a top business development company (BDC). It provides financing to middle-market businesses, which typically generate annual revenue between $100 million and $3 billion. As a BDC, Ares must return at least 90% of its earnings to shareholders via dividends to be exempt from income taxes on its profits.

Shareholders 188

Shareholders Capital Business Development Companies Prospects 188

The Motley Fool

NOVEMBER 29, 2024

As a business development company (BDC) , it must return at least 90% of earnings to shareholders as dividends to be exempt from federal income taxes. The company's business remains strong. billion with 23 new portfolio companies and 51 existing portfolio companies.

Initial Public Offering 189

Initial Public Offering Investors Capital Business Development Companies 189

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.

Debt 246

Debt Investing Liabilities Private Companies 246

The Motley Fool

JANUARY 23, 2024

Last year, a study released by the Hartford Funds, in cooperation with Ned Davis Research, found that dividend-paying companies delivered an annualized return of 9.18% between 1973 and 2022. That compared to an annualized return of 3.95% for non-paying companies over the same five-decade stretch. Annaly is currently yielding 13.5%

Debt 245

Debt Public Companies Capital Assets 245

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.

Debt 246

Debt Liabilities Assets Capital 246

The Motley Fool

APRIL 2, 2025

Its business model is simple: It buys properties, rents them out, and splits that rental income with its investors. As a REIT, the company must pay out at least 90% of its pretax profits as dividends to maintain a favorable tax rate. BDCs fill that gap by offering higher-interest loans to those companies.

Investing 130

Investing Initial Public Offering Exchange-Traded Funds Venture Capital 130

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. This provides Hercules with an extra sweetener should one of its portfolio companies liquidate in an initial public offering (IPO) or acquisition. Hercules Capital: 10.6%

Leveraged Buyouts 246

Leveraged Buyouts Initial Public Offering Shareholders Exchange-Traded Funds 246

The Motley Fool

AUGUST 10, 2024

Most companies pay out their dividends on a quarterly, semi-annual, or annual basis. REITs are also required to pay at least 90% of their taxable income as dividends to maintain a favorable tax rate. companies that are valued at less than $250 million. For those investors, monthly dividend payers might be more attractive.

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Initial Public Offering Amortization Depreciation Earnings Before Interest 130

The Motley Fool

JUNE 23, 2024

The company hasn't raised the payout since slashing it a couple of years ago, and at recent prices, the telecom stock offers a 6.1% At the end of March, the company's net debt level was 2.9 times the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) it generated over the past 12 months.

Debt 130

Debt Investing Amortization Depreciation 130

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).

Capital 130

Capital Debt Amortization Depreciation 130

The Motley Fool

APRIL 28, 2024

The kicker: The iShares Core High Dividend ETF is very tax efficient. But simply owning a fund can create taxable events, even if you don't sell that fund in a particular tax year. If this fund isn't held in a tax-protected account like an IRA, you may end up owing taxes on these gains. A word of warning here.

Exchange-Traded Funds 100

Exchange-Traded Funds Taxes Business Development Companies Stakes 100

The Motley Fool

OCTOBER 31, 2024

Baby bonds are issued by the same types of companies that issue traditional bonds, including utility companies, investment banks, telecom companies and other types of corporate issuers. Tax Considerations -- It's important to consider the tax implications of baby bonds.

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Due Diligence Investing Bidding Taxes 100