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With thousands of publicly traded companies and exchange-traded funds (ETFs) to choose from, every investor is likely to find one or more securities that'll help them meet their goals. BDCs are a type of business that invests in the equity (common and preferred stock) and/or debt of middle-market companies.
In particular, I've been looking closely at businessdevelopmentcompanies ( BDCs ). What are businessdevelopmentcompanies? At their core, they're capital providers to early-stage businesses looking for funding to get their operations off the ground. BDCs are pretty interesting.
Dividend stocks are Wall Street's unsung hero In 2023, the investment advisors at Hartford Funds released a lengthy report that examined the ins and outs of what makes dividend stocks so great. The Hartford Funds' findings shouldn't be too shocking. This makes PennantPark Floating Rate Capital a debt-focused BDC.
With stocks, bonds, exchange-traded funds, and derivatives to choose from, the stock market gives everyday investors an endless array of options. Buying shares of businesses that produce profits and commit to returning those profits to their shareholders is an investing strategy with a terrific track record. annually, on average.
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. Although PennantPark's management team is overseeing close to $209 million in various common and preferred equity positions, the bulk of the company's portfolio -- $1.45
While there are thousands of publicly traded companies and exchange-traded funds (ETFs) to choose from, certain investment strategies have, historically, worked better than others. billion in debt securities PennantPark Floating Rate Capital holds makes it a decisively debt-focused BDC. Image source: Getty Images.
With thousands of publicly traded companies and exchange-traded funds (ETFs) to choose from, pathways exist for investors of varying risk tolerances to grow their wealth over time. We're talking about consistent adjusted funds from operations that simply can't be matched by other retail REITs. This makes it a debt-focused BDC.
With thousands of publicly traded companies and exchange-traded funds (ETFs) to choose from, there's an investment strategy that fits all investment tastes and tolerances. These are businesses consumers are going to visit regardless of how well or poorly the U.S. billion in secured debt.
Last year, the investment advisors at Hartford Funds released a lengthy report ("The Power of Dividends: Past, Present, and Future") examining the many ways dividend stocks have outperformed their non-paying counterparts over many decades. These are typically unproven small and microcap businesses. occupancy rate.
With thousands of publicly traded companies and exchange-traded funds (ETFs) to choose from, investors have a plethora of ways they can grow their wealth. Last year, Hartford Funds released an extensive report that examined the many ways and scenarios dividend stocks have outperformed non-payers over long stretches. Since Sept.
In 2023, Hartford Funds released an extensive report ("The Power of Dividends: Past, Present, and Future") that examined the ins and outs of how dividend stocks have outperformed over long stretches. The company raised its monthly payout twice last year. I'm talking about predominantly private, small-cap, and microcap businesses.
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). Since March 31, 2022, AT&T's net debt has declined from $169 billion to $128.9 yield is safe. 30, 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.
During the 50-year period between 1973 and 2022, dividend-paying stocks in the benchmark S&P 500 index delivered a 9.18% average annual return, while non-dividend-paying stocks in the same index returned just 3.95% on average, according to Hartford Funds and Ned Davis Research. AT&T finished September with $129 billion in net debt.
Ares Capital Corporation: Ultra-high yield and mild growth Ares Capital Corporation (NASDAQ: ARCC) is a businessdevelopmentcompany ( 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%
Over the same time frame, dividend payers in the same index delivered a 9.17% average annual return, or more than double that of their non-dividend-paying cousins, according to Hartford Funds and Ned Davis Research. Ares Capital Corporation Ares Capital is a businessdevelopmentcompany, or BDC. in the second quarter.
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). BDCs are businesses that invest in small- and micro-cap companies (collectively known as "middle-market companies"). As of Sept.
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%. Legacy telecom companies are lugging around quite a bit of debt on their balance sheets. But thanks to this spinoff, Warner Bros.
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.
In an effort to combat historically high inflation that briefly surpassed an annualized rate of 9% in June 2022, the nation's central bank has raised its federal funds rate at the fastest pace in more than four decades. BDCs are businesses that invest in the debt and/or equity (common and preferred stock) of middle-market companies.
Companies in the benchmark S&P 500 index that initiated a dividend or grew their payout over the 50-year period from 1973 through 2022 delivered a 10.24% average annual return. annually, according to Ned Davis Research and Hartford Funds. The average yield on PennantPark's debt investments rose to 12.4% NYSE: PFLT).
Ares Capital Ares Capital is the world's largest publicly traded businessdevelopmentcompany, 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.
Last year, Hartford Funds released a report that, in collaboration with Ned Davis Research, examined the average annual returns of dividend stocks vs. non-payers over a five-decade stretch (1973-2022). BDCs are companies that invest in the debt or equity (common and preferred stock) of middle-market businesses (i.e,
Billionaire hedge fund manager Ken Griffin more than tripled Citadel Advisors' position in Hercules Capital (NYSE: HTGC) during the last three months of 2023. Hercules Capital Hercules Capital is a businessdevelopmentcompany ( BDC ) that lets everyday investors get in on the ground floor with innovative tech and life science businesses.
Businessdevelopmentcompanies (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. BDCs typically compete with banks and even venture capital or private equity funds depending on the deal structure. Data source: YCharts.
If you don't have enough capital to spread among dozens of qualified candidates, or a team of experienced analysts who can help you recognize potential winners, you would be more likely to lose your shirt by putting your money into such businesses than to realize significant gains over the long run.
The company's billionaire skeptics include Ken Griffin of Citadel Advisors and Israel Englander of Millennium Management, who oversaw the sale of approximately 2.27 million shares for their respective funds during the first quarter. Horizon is predominantly debt-focused, with 57 separate investments totaling $684.6 from 12.4%
The average annual return produced by non-dividend payers in the same index was just 4.27% over the same time frame, according to Ned Davis Research and Hartford Funds. Ares Capital Ares Capital is America's largest publicly traded businessdevelopmentcompany ( BDC ). in the fourth quarter of 2023.
Ares is a leading businessdevelopmentcompany ( BDC ) based in the U.S. As a direct lender, it supplies the capital that private companies need to fund and grow their operations. Ares typically serves established businesses with revenue of $10 million to $1 billion. Ares spread its $22.9
The company basically owns a portfolio of mortgages and makes money off the spread between the yield of its investments and the short-term funding costs to buy them. It locks in the spreads with hedges and then uses leverage to increase its returns. Image source: Getty Images. AGNC Price to Tangible Book Value data by YCharts.
Ares is a leading businessdevelopmentcompany (BDC). That attractive valuation isn't because the company'sbusiness is floundering. What they might have overlooked, though, is the reason the company is raising money via a share sale: to fund growth. times forward earnings.
Let's break down five companies that are established dividend payers, and assess why holding each of these stocks over a long-term time horizon can lead to massive gains for your portfolio. Hercules Capital Hercules Capital (NYSE: HTGC) is a businessdevelopmentcompany (BDC).
Hercules Capital Hercules Capital (NYSE: HTGC) is a businessdevelopmentcompany (BDC) that specializes in high-yield loans to venture-backed companies. As of the end of the second quarter, AT&T's net debt was $127 billion. Let's explore five dividend stocks that I think look like screaming buys right now.
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 Ares Capital (NASDAQ: ARCC) is the largest publicly traded businessdevelopmentcompany (BDC). Ares Capital appears to have solid growth prospects going forward as middle-market businesses increasingly turn to it to raise capital. The company's 70,000 miles or so of pipelines deliver roughly 40% of U.S.
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 businessdevelopmentcompanies (BDCs). Hercules Capital: Dividend yield 10.5%
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. The company's $21.5
From 2014 to 2024, Realty Income's adjusted funds from operations ( AFFO ) per share had a steady compound annual growth rate (CAGR) of 5%. Main Street Capital Main Street Capital is a businessdevelopmentcompany (BDC) that provides direct loans to "middle market" companies with annual revenue between $10 million and $150 million.
While many different types of companies pay dividends, one of the more generous types is businessdevelopmentcompanies (BDCs). Hercules Technology Growth Capital (NYSE: HTGC) is a leading BDC that specializes in a vehicle called venture debt for life sciences, energy, and technology businesses.
The report cites a note from Bank of America which stated: “Potential problematic situations within private debt remain unaddressed and are likely to surface near term. At particular risk are unitranches, businessdevelopmentcompanies, older vintage funds with highly levered deals, and recurring revenue loans.”
While many companies pay dividends, businessdevelopmentcompanies (BDCs) represent a unique and potentially lower-risk way of adding substantial passive income to your portfolio. dividend yield Hercules Capital (NYSE: HTGC) is a BDC that focuses on technology, life sciences, and sustainable energy businesses.
Question is: Can it become a one-stop shop for pension funds, endowments, insurers, and sovereign wealth funds eager for exposure to every major alternative-asset class — without diminishing its private credit franchise? Despite staying with private debt, Ares had no trouble keeping pace with the rest of the industry.
dividend yield Hercules Capital (NYSE: HTGC) is a businessdevelopmentcompany (BDC) that specializes in providing capital to venture-backed start-ups. The chart below tracks the total return of Ares stock versus a number of leading S&P 500 -themed exchange-traded funds (ETFs). Hercules Capital: 10.6%
That hasn't made this businessdevelopmentcompany ( BDC ) a hit lately, though; its stock has fallen since Nov. This means that its business is providing financing to middle-market companies that often can't secure funding from traditional banks or other creditors. as of Sept. 30 from 12.6%
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