The Motley Fool

AUGUST 23, 2023

When surveying the investment universe for options, income investors need to be careful to avoid yield traps. 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.

Capital 130

Capital Amortization Depreciation Debt 130

The Motley Fool

AUGUST 10, 2024

Realty Income (NYSE: O) , LTC Properties (NYSE: LTC) , and Gladstone Investment (NASDAQ: GAIN) all deliver monthly income with minimal drama. Realty Income Realty Income is one of the largest real estate investment trusts ( REITs ) in the world. They also need to invest 70% of their assets in U.S. Image source: Getty Images.

Initial Public Offering 130

Initial Public Offering 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. And about 96% of its debt investments are at floating rates. That investment had a cost of $30.9

Capital 130

Capital Initial Public Offering Collateral Debt 130

The Motley Fool

OCTOBER 24, 2024

It also indicated that fixed-income investments like CDs and U.S. Should you invest in it today? It invests between $30 million and $500 million in debt and equity in each company. That makes BDCs riskier investments than traditional banks, but they also collect higher interest on their loans.

Capital 130

Capital Debt Amortization Depreciation 130

The Motley Fool

FEBRUARY 1, 2024

If you want $1,000 in super-safe dividend income in 2024, all you'd need to do is invest $9,750 (split equally, three ways) into the following three ultra-high-yield stocks, which sport a scorching-hot average yield of 10.28%! I'm talking about smaller, generally unproven private companies. yield is safe. Image source: Getty Images.

Debt 246

Debt Investing Liabilities Private Companies 246

The Motley Fool

OCTOBER 22, 2024

In The Power of Dividends: Past, Present, and Future , the investment advisors at Hartford Funds, in collaboration with Ned Davis Research, compared the performance of income stocks to non-payers over the last half-century (1973-2023). Lastly, Annaly Capital Management predominantly invests in agency assets. Image source: Getty Images.

Debt 246

Debt Initial Public Offering Exchange-Traded Funds Capital 246

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 Amortization 246

The Motley Fool

FEBRUARY 8, 2025

So should investors load up on this high-yield dividend stock before it exceeds that rosy estimate? Where to invest $1,000 right now? It aims to invest $30 million to $500 million in debt and equity in those companies. BDCs fill that niche by providing those companies with higher-interest loans than traditional banks.

Capital 219

Capital Debt Assets Amortization 219

The Motley Fool

JANUARY 1, 2025

If you have a tidy amount of cash to invest and can find stocks with especially juicy dividend yields (and the ability to keep those dividends coming), you can potentially rake in significant passive income. Investing $134,800 in these three high-yield dividend stocks could make you $10,000 in reliable passive income in 2025.

Investing 130

Investing Taxes Amortization Depreciation 130

The Motley Fool

MARCH 16, 2025

Ares Capital (NASDAQ: ARCC) , a business development company (BDC) that pays out most of its profits as dividends, went public in October 2004 at $15 a share. Therefore, a $10,000 investment in its IPO would be worth about $119,000 today, paying out approximately $10,450 in annual dividends.

Capital 130

Capital Debt Taxes Venture Capital 130

The Motley Fool

DECEMBER 23, 2024

Before opening your brokerage application to buy these stocks, it's important to remember dividend yields usually don't climb this high unless investors are worried about the underlying businesses. Where to invest $1,000 right now? In fiscal 2024, this BDC purchased new investments worth $1.4

Portfolios 130

Portfolios Financial Institutions Amortization Depreciation 130