The Motley Fool

AUGUST 23, 2023

A yield trap can come about for a few reasons, including a burdensome debt load, a declining business, or an elevated dividend payout ratio. Sporting a whopping 10% dividend yield, investors may initially think that the business development company ( BDC ) Ares Capital (NASDAQ: ARCC) is a yield trap. The company's $21.5

Capital 130

Capital Amortization Depreciation Earnings Before Interest 130

The Motley Fool

AUGUST 10, 2024

Gladstone Investment Gladstone Investment is a business development company ( BDC ) that mainly offers loans to smaller, midsize, and mature companies. Its portfolio consists of two dozen companies in the consumer services, consumer products, and manufacturing sectors.

Initial Public Offering 130

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.

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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). Image source: Getty Images.

Capital 130

Capital Debt Amortization Depreciation 130

The Motley Fool

AUGUST 10, 2024

PennantPark Floating Rate Capital PennantPark Floating Rate Capital is a business development company (BDC). For decades, America's largest banks have stepped back from lending directly to mid-sized businesses. times their interest expenses.

Investing 130

Investing Amortization Depreciation Earnings Before Interest 130

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. However, BDCs can employ very different strategies and not all are created equal. About 96% of its debt portfolio is floating rate.

Capital 130

Capital Initial Public Offering Debt Collateral 130

The Motley Fool

DECEMBER 28, 2024

That's because Ares is a business development company (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.

Capital 246

Capital Debt Assets Banks 246

The Motley Fool

JANUARY 1, 2025

Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC). As a BDC, Ares provides financing primarily to middle-market businesses with market caps between $100 million and $1 billion. Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day.

Investing 130

Investing Taxes Amortization Depreciation 130

The Motley Fool

DECEMBER 23, 2024

PennantPark Floating Rate Capital PennantPark Floating Rate Capital is a business development company ( BDC ) that lends to midsize companies, which U.S. Income-seeking investors like BDCs because they must distribute at least 90% of their earnings to shareholders as a dividend.

Portfolios 130

Portfolios Financial Institutions Amortization Depreciation 130