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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, businessdevelopmentcompanies (BDCs) represent a unique opportunity. Horizon Technology Finance: 9.9% Image source: Getty Images.
dividend yield Hercules Capital (NYSE: HTGC) is a businessdevelopmentcompany (BDC) that specializes in providing capital to venture-backed start-ups. Hercules is different from a typical bank as it tends to offer more flexible financing options. Hercules Capital: 10.6%
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). Horizon Technology Finance: Dividend yield 11.4% dividend yield.
Businessdevelopmentcompanies (BDC) can be particularly good sources of dividend income, paying above market returns. dividend yield Horizon Technology Finance (NASDAQ: HRZN) is comparable to Hercules in that it also specializes in high-yield term loans to technology and life-sciences businesses.
While many companies pay dividends, businessdevelopmentcompanies (BDCs) represent a unique and potentially lower-risk way of adding substantial passive income to your portfolio. Over the past decade, this company's stock has returned 152% to investors (with dividends reinvested).
Lately, much attention has been lavished on Ares Capital, the unit created in 2004 to provide financing for middle-market acquisitions, recapitalizations, and leveragedbuyouts. At the end of 2022, the weighted average EBITDA of Ares Capital’s portfolio companies reached $275 million.
In the US, Bloomberg Intelligence reckoned in a February note that 17% of loans at the 10 largest businessdevelopmentcompanies — essentially vehicles for private credit funds — involved PIK.
4 To discuss the opportunities in this rising asset class and how to navigate the benefits and challenges of higher-for-longer rates, I welcome, as indicated below, the perspectives of Jonathan Bock, Co-CEO of Blackstone’s BusinessDevelopmentCompanies (BDCs) and Global Head of Market Research for Blackstone Credit.
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