The Motley Fool

SEPTEMBER 23, 2024

Before you plow every penny you can find into these two stocks, it's important to remember that an especially high yield means the market is worried the underlying business can't continue meeting and raising its dividend commitment. The average yield Ares received from its portfolio of debt securities was a healthy 12.2%

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The Motley Fool

AUGUST 28, 2024

PennantPark Floating Rate Capital: 11.15% yield The second sensational ultra-high-yield dividend stock that can help deliver $100 in monthly income from a starting investment of $9,555 split two ways is small-cap businesses development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). Since Sept. million of its $1.45

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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). is well above average.

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The Motley Fool

MARCH 28, 2024

PennantPark Floating Rate Capital: 10.91% yield The second ultra-high-yield stock that can help you generate $300 in super safe monthly dividend income from a beginning investment of $43,000 split two ways is completely under-the-radar business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). Since Sept.

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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

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. AT&T generated $19.8 yield at recent prices.

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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

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

JUNE 23, 2023

PennantPark Floating Rate Capital: 11.67% yield A second monster dividend stock that can collectively allow you to generate $100 in monthly income from an initial investment of $9,300 (split equally) is business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). Although PennantPark was holding $157.2

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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.

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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). Why does Ares Capital pay such a high dividend?

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The Motley Fool

AUGUST 3, 2024

Ares Capital Corporation Ares Capital is a business development company, or BDC. Income-seeking investors like these types of businesses because they can legally avoid federal income taxes by distributing nearly everything they earn to shareholders as a dividend. in the second quarter. more than it had a year earlier.

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The Motley Fool

FEBRUARY 8, 2024

PennantPark Floating Rate Capital: 11.02% yield A second ultra-high-yield stock that can help you bring home $300 each month from an initial investment of $32,000 (split three ways) is business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). The company raised its monthly payout twice last year.

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The Motley Fool

FEBRUARY 4, 2024

Ares Capital Ares Capital (NASDAQ: ARCC) is America's largest publicly traded business development company ( BDC ). Middle-market businesses generally have over $10 million in annual revenue, but they still can't get America's big banks to give them loans. as of Sept. dividend yield at recent prices.

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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

MAY 2, 2024

Time to pounce: PennantPark Floating Rate Capital (10.82% yield) A second ultra-high-yield dividend stock that's begging to be bought in May is off-the-radar business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). billion) is tied up in debt securities. billion) is tied up in debt securities.

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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. The company specializes in an instrument called venture debt -- or loans made at high interest rates.

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The Motley Fool

NOVEMBER 30, 2023

yield A second ultra-high-yield stock capable of producing exceptionally safe dividend income that more than doubles the yield on Treasury bonds is business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). million in debt securities. million debt-security portfolio is in first-lien secured debt.

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The Motley Fool

NOVEMBER 23, 2023

PennantPark Floating Rate Capital: 11.26% yield Whereas the other two ultra-high-yield stocks on this list pay their dividends on a quarterly basis, business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT) parses out its payouts on a monthly basis. million in debt securities. 30, 2021 to 12.6%

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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

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

FEBRUARY 22, 2024

BDCs are companies that invest in the debt or equity (common and preferred stock) of middle-market businesses (i.e, generally small and unproven companies). billion in debt securities held means it's primarily a debt-focused BDC. The answer to "Why focus on debt for unproven businesses?"

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The Motley Fool

JULY 14, 2023

PennantPark Floating Rate Capital: 11.37% yield A second ultra-high-yield dividend stock that can collectively generate $500 in super safe annual dividend income from an initial investment of $5,750 (split equally, three ways) is business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT).

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The Motley Fool

OCTOBER 15, 2024

Ares Capital (NASDAQ: ARCC) and PennantPark Floating Rate Capital (NYSE: PFLT) are a pair of well-manged business development companies (BDCs) that offer eye-popping dividend yields. banks have been increasingly hesitant to lend to businesses directly for decades. The BDC industry is a lucrative one because U.S.

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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. The midsize businesses Ares lends to are willing to borrow at higher rates than you might expect. The average yield it received from the debt securities in its portfolio was 12.2% in the second quarter.

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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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The Motley Fool

JANUARY 4, 2024

PennantPark Floating Rate Capital: 10.17% yield A second high-yield stock capable of producing $100 in super safe monthly dividend income in 2024 from an initial investment of $11,925 (split three ways) is business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). As of Sept. 30, PennantPark held $906.3

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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

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&T racked up a lot of debt building out its 5G infrastructure. At the end of March, the company's net debt level was 2.9 times adjusted EBITDA in the first half of 2025.

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The Motley Fool

AUGUST 11, 2023

yield The second ultra-high-yield dividend stock that can generate $100 in super safe annual dividend income from an initial investment of $905 (split equally three ways) is business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). billion in debt securities. PennantPark Floating Rate Capital: 10.8%

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The Motley Fool

DECEMBER 16, 2023

As a result, companies that record between $10 million and $1 billion in annual revenue are generally starved for capital and willing to pay business development companies ( BDC ) like PennantPark Floating Rate Capital (NYSE: PFLT) above-average interest rates. The company generated $8.5

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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

NOVEMBER 3, 2024

Ares Capital Ares Capital is the world's largest publicly traded business development company ( BDC ). These specialized entities fill the gap left by big banks that no longer lend directly to most businesses. The average yield on PennantPark's debt investments was a very healthy 12.1% at the end of June.

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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

MAY 7, 2024

These three stand out because their underlying businesses appear capable of meeting their current obligations and raising their yields higher in the years ahead. Hercules Capital Hercules Capital is a business development company ( BDC ) that allows anyone with a brokerage account to participate in exciting venture capital investments.

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The Motley Fool

AUGUST 13, 2023

This business development company (BDC) makes monthly payments, and it offers an eye-popping 11.3% As its name implies, PennantPark issues debt to privately held businesses at floating interest rates that have risen a great deal over the past year and a half. NYSE: PFLT). yield at recent prices. a year earlier.

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Investing Debt Business Development Companies Portfolios 243

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. Default Risk -- Most baby bonds are classified as unsecured debt of the issuer.

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