The Motley Fool

DECEMBER 4, 2023

Businesses usually become profitable on a recurring basis long before they commit to a dividend program. Once they make such a commitment, returning a portion of profits to shareholders forces management teams to make smarter decisions. AT&T finished September with $129 billion in net debt. Image source: Getty Images.

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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. BDCs are companies that invest in the debt and/or equity (common/preferred stock) of middle-market businesses.

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The Motley Fool

MAY 2, 2024

On the other side of the coin, publicly traded companies that don't offer a payout trudged their way to a more modest 4.27% annualized return between 1973 and 2023 and did so while being 18% more volatile than the S&P 500. In other words, they're just the type of businesses that are expected to increase in value over an extended timeline.

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The Motley Fool

JUNE 23, 2023

Companies that offer a regular dividend to their shareholders are usually profitable on a recurring basis and time-tested. BDCs invest in middle-market companies (predominantly small- and micro-cap businesses) and fall into two categories: debt-focused and equity-focused. annualized return for the non-payers.

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The Motley Fool

FEBRUARY 1, 2024

By comparison, publicly traded companies that don't offer a payout have clawed their way to a more pedestrian annualized return of 3.95% over the same five-decade stretch. They're just the type of business we'd expect to increase in value over long periods. million in net debt, its net-leverage ratio is a modest 0.31.

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The Motley Fool

OCTOBER 22, 2024

Companies that dole out a dividend to their shareholders on a regular basis tend to be recurringly profitable and time-tested. yield The second magnificent ultra-high-yield dividend stock that can be bought with confidence right now is little-known business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT).

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The Motley Fool

JUNE 15, 2023

As a REIT, Medical Properties Trust can avoid paying income taxes by distributing at least 90% of earnings to shareholders as dividends. Now that some of that risk has been alleviated , the company has a pretty good chance to continue meeting its dividend obligation. and nine other countries. in the first quarter.

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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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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 company raised its monthly payout twice last year. Without getting too far into the weeds, BDCs make money by investing in the equity (common and preferred stock) and/or debt of middle-market companies.

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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

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. over the past five years. in the second quarter.

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The Motley Fool

JULY 14, 2023

Companies that offer a regular payout to their shareholders are usually profitable on a recurring basis and time-tested. PennantPark has the highest yield among the three companies listed here (11.4%) and doles out its payout on a monthly basis. billion tied up in first-lien secured debt of middle-market companies.

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The Motley Fool

APRIL 5, 2024

Ares Capital Ares Capital is America's largest publicly traded business development company ( BDC ). These specialized entities are popular among income-seeking investors because they can legally avoid paying income taxes by distributing at least 90% of their earnings to shareholders. dividend yield.

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The Motley Fool

SEPTEMBER 18, 2023

These businesses aren't flashy, but they do produce reliable profits. Plus, they're committed to distributing earnings to their shareholders. 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.

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The Motley Fool

FEBRUARY 22, 2024

Dividend stocks may not be highfliers like the " Magnificent Seven " but can generally increase in value over time and make their patient shareholders richer. 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).

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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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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

MAY 5, 2024

As the largest publicly traded business development company ( BDC ) in the U.S., Ares provides private companies with the cash they need to expand. It specializes in loans to "middle-market" businesses that typically have sales of between $10 million and $1 billion. The BDC leader's $22.9

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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. on its debt instruments.

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The Motley Fool

JANUARY 2, 2024

Companies that pay a regular dividend to their shareholders are usually profitable on a recurring basis, and they can often provide transparent long-term growth outlooks. 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.

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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. 30, 2023, AT&T's net debt fell from $169 billion to $128.7

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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. a year earlier. This BDC's costs of capital are rising too, but not quite as fast.

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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. million in debt securities. million debt-security portfolio is in first-lien secured debt.

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The Motley Fool

APRIL 28, 2024

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 business development company (BDC).

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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. in the second quarter.

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The Motley Fool

FEBRUARY 24, 2024

Most American shareholders see their quarterly payments fluctuate with currency exchange rates but the payout has grown every year, in British pounds, since 2007. The average return on Ares Capital's debt investments rose to 12.5% There are 505 companies in Ares Capital's portfolio and nearly all are backed by private equity sponsors.

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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. Since Hercules is a BDC, it's required to pay out 90% of its taxable income to shareholders each year in the form of a dividend. Hercules Capital: 10.6% Rithm Capital: 9.1%

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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. The company is working to reduce its debt-to-EBITDA ratio to the low end of its target range of 4x to 4.5x.

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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 23, 2024

Hercules Capital Hercules Capital (NYSE: HTGC) is a business development company (BDC) that specializes in high-yield loans to venture-backed companies. While it may not be as attractive as a high-growth AI stock, Ares has quietly been a multibagger opportunity for its shareholders. right now.

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Exchange-Traded Funds Banks Capital Business Development Companies 246

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

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. dividend yield.

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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. Ares Capital does have debt of around $11.4 Debt comes with the territory for BDCs. However, every stock has at least one Achilles' heel.

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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). Hercules Capital: Dividend yield 10.5%

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The Motley Fool

NOVEMBER 3, 2024

That's because companies rarely commit to distributing a portion of their profits to shareholders unless they're already profitable and likely to stay that way. Dividend-paying businesses have to be extra careful with their cash flows, which tends to benefit investors. At the end of June, just three companies representing 1.5%

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The Motley Fool

AUGUST 23, 2023

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. And while many companies have been hurt by higher interest rates, the contrary has been true for Ares Capital.

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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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