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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.
yield The second magnificent ultra-high-yield dividend stock that can be bought with confidence right now is little-known businessdevelopmentcompany (BDC) PennantPark Floating Rate Capital (NYSE: PFLT). billion -- is tied up in first-lien secured debt. There are a few clear-cut advantages to being a debt-focused BDC.
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.
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 earningsbeforeinterest, taxes, depreciation, and amortization ( EBITDA) ratio of 2.5 yield at recent prices.
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.
Main Street Capital Another stock that pays a monthly dividend is Main Street Capital (NYSE: MAIN) , which is a businessdevelopmentcompany (BDC) that invests in the debt and equity of lower-middle-market companies.
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.
One type of business that income-focused investors might have come across is the businessdevelopmentcompany (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.
Ares Capital is a businessdevelopmentcompany ( BDC ) that provides financing for middle-market companies (businesses that generate between $10 million and $250 million in earningsbeforeinterest, taxes, depreciation, and amortization ( EBITDA ) every year).
A yield trap is a company that pays a potentially unsustainable dividend. A yield trap can come about for a few reasons, including a burdensome debt load, a declining business, or an elevated dividend payout ratio. Arguably no company has filled this funding gap as much as Ares Capital. Image source: Getty Images.
dividend yield Hercules Capital (NYSE: HTGC) is a businessdevelopmentcompany (BDC) that specializes in providing capital to venture-backed start-ups. The company also specializes in venture debt for start-ups in the technology, life sciences, and sustainable energy industries. Hercules Capital: 10.6%
PennantPark Floating Rate Capital PennantPark Floating Rate Capital is a businessdevelopmentcompany (BDC). For decades, America's largest banks have stepped back from lending directly to mid-sized businesses. weighted-average yield on its debt investments. times their interest expenses.
Gladstone Investment Gladstone Investment is a businessdevelopmentcompany ( BDC ) that mainly offers loans to smaller, midsize, and mature companies. companies that are valued at less than $250 million. Gladstone typically invests up to $75 million in debt and equity per deal.
That's because Ares is a businessdevelopmentcompany (BDC) that mainly focuses on paying high dividends to income-oriented investors. Let's review its business model, growth rates, and valuations to decide. It usually invests between $30 million and $500 million in debt and equity in each company.
Ares Capital is a businessdevelopmentcompany (BDC) that provides capital to middle-market companies with $10 million to $250 million in annual earningsbeforeinterest, taxes, depreciation, and amortization ( EBITDA ). Metric 2021 2022 2023 2024 Debt-to-equity ratio* 1.21
Ares Capital (NASDAQ: ARCC) , a businessdevelopmentcompany (BDC) that pays out most of its profits as dividends, went public in October 2004 at $15 a share. Ares usually invests anywhere from $30 million to $500 million in debt and equity in each company. Ares Capital's debt-to-equity ratio rose from 0.38
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