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A pair of misses in the fourth quarter Ares, a prominent businessdevelopmentcompany (BDC) , reported its fourth-quarter and full-year 2024 results. He added that in 2025 the company should benefit from "an increasingly active investing market for acquisition finance and growth capital opportunities."
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. Ares Capital: 9.6%
Lowe's Companies (NYSE: LOW) Large home improvement retailer 2.1% Data source: Company websites, Google Finance. Enterprise Products Partners (NYSE: EPD) Midstream energy company that operates pipelines and other assets 7.5% ExxonMobil (NYSE: XOM) Large international oil and gas company 3.7%
Anyone familiar with middle-market financing probably knows the company well, though. It's the largest publicly traded businessdevelopmentcompany (BDC) providing financing solutions to middle-market businesses. The 10 stocks that made the cut could produce monster returns in the coming years.
Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded businessdevelopmentcompany (BDC) in the world. It provides alternative financing to middle-market companies across a wide range of industries. The demand for financing alternatives for the middle market also continues to increase.
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. The 10 stocks that made the cut could produce monster returns in the coming years. Even among its peers, this approach is unusual.
With a yield so juicy, Ares doesn't have to generate much share price appreciation to deliver nice total returns. Delivering great total returns is something Ares Capital has consistently done, by the way. Since its IPO in 2004, Ares' cumulative total returns have been more than 60% higher than the S&P 500 's.
Ares Capital Ares Capital (NASDAQ: ARCC) reigns as the largest publicly traded businessdevelopmentcompany (BDC). It provides financing primarily to middle-market businesses. The banking crisis that began earlier this year could also help the BDC as middle-market companies seek alternative financing.
There are many types of businesses that could benefit from reductions in interest rates. In particular, I've been looking closely at businessdevelopmentcompanies ( BDCs ). What are businessdevelopmentcompanies? HTGC Total Return Level data by YCharts. BDCs are pretty interesting.
Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded businessdevelopmentcompany (BDC). It provides financing to middle-market businesses with a special focus on the upper end of this market. The company's dividend has been stable or increased for more than 14 years.
Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded businessdevelopmentcompany (BDC). It focuses primarily on providing financing alternatives to the upper end of the middle market. As a BDC, Ares Capital must return at least 90% of its taxable income to shareholders in the form of dividends.
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.
Ares Capital Ares Capital (NASDAQ: ARCC) is a leading businessdevelopmentcompany (BDC) that provides financing to middle-market businesses. Since its initial public offering in October 2004, Ares Capital has generated a cumulative total return that is more than 65% higher than the S&P 500 's total return.
With equity stakes in successful businesses such as Palantir Technologies and Axsome Therapeutics , this businessdevelopmentcompany's ( BDC ) regular quarterly dividend has held steady or risen since 2009. Royalty Pharma Royalty Pharma is another specialized financebusiness.
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. The Motley Fool has a disclosure policy.
It's a businessdevelopmentcompany (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. More importantly, the company has a more stringent risk management approach than most of its peers. Ares Capital stands out from most BDCs, though.
The company's dividend yield of 9.49% would enable you to make well nearly $3,638 in passive income this year. Ares Capital offers such a high yield primarily because of its business structure. Of course, the company must generate plenty of income in the first place to have enough to pay dividends.
Luckily, one of the most effective methods to generate outsize returns, buying dividend stocks to hold long term, is also one of the easiest to implement. Businesses usually become profitable on a recurring basis long before they commit to a dividend program. billion portfolio is spread across 130 portfolio companies. .*
Prospect received new financing in May that will likely result in it resuming payments before the end of 2023. yield PennantPark Floating Rate Capital (NYSE: PFLT) is a businessdevelopmentcompany (BDC), which is another type of entity that can avoid paying taxes by distributing nearly all its profits to shareholders as a dividend. .*
Ares Capital is a top businessdevelopmentcompany (BDC). It provides financing to middle-market businesses, which typically generate annual revenue between $100 million and $3 billion. Ares Capital has generated the highest total returns and dividend growth of any large publicly traded BDC over the last 10 years.
Ares Capital Ares Capital (NASDAQ: ARCC) is a large businessdevelopmentcompany (BDC) that essentially acts as a lender to many of the midsized businesses that large banks tend to ignore. Plus, new financing that Prospect received in May could help it bounce back more quickly than previously expected.
A report issued by JPMorgan Chase 's wealth management division in 2013 found that publicly traded companies initiating and growing their payouts between 1972 and 2012 delivered an annualized return of 9.5%. annualized return for the public companies that didn't offer a dividend over the same 40-year stretch. All but $0.1
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). What this analysis showed was that dividend payers generated an annualized return of 9.18% over five decades. over the trailing two years.
Ares is a leading businessdevelopmentcompany (BDC). That attractive valuation isn't because the company'sbusiness is floundering. Unsurprisingly, the company has delivered significantly higher returns on equity (ROE) and total returns than other BDCs. times forward earnings.
In collaboration with Ned Davis Research, Hartford Funds found that dividend payers averaged an annual return of 9.18% over a half-century (1973-2022). 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.
Morgan Asset Management, a division of money-center bank JPMorgan Chase , publicly traded companies that initiated and grew their payouts between 1972 and 2012 produced an annualized return of 9.5%. annualized return for publicly traded companies that didn't offer a payout over the same four-decade timeline.
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. Over the last 10 years, Hercules stock has a total return of 230%.
A 2013 report from the wealth-management division of JPMorgan Chase found that companies initiating and growing their dividends generated an annualized return of 9.5% By comparison, publicly traded companies with no payout crawled to a meager 1.6% annualized return over this same four-decade span. between 1972 and 2012.
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%. PennantPark pays its dividend on a monthly basis , with the company increasing its payout twice last year. Image source: Getty Images.
Ares Capital ranks as the largest publicly traded businessdevelopmentcompany (BDC). It focuses on providing financing to the upper end of the middle market. This, along with the company's diversified portfolio, means Ares Capital's investments are less risky -- which is good news for long-term investors.
OK, maybe that's not the best comparison, but it's definitely true that the legendary investor's returns wouldn't be nearly as good without the dividends his stocks have generated through the years. yield and has trounced the market in total returns over the last three years. That doesn't mean he doesn't own any of them, though.
While there are many dividend stocks out there, some of my favorite opportunities are in businessdevelopmentcompanies (BDC). dividend yield Hercules Technology Growth Capital (NYSE: HTGC) is a BDC that specializes in making high-yield loans to emerging technology businesses. HTGC Total Return Price data by YCharts 2.
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.
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). During the last decade, Hercules stock had a total return of 235%. dividend yield.
Miller has been serving as an advisor to Emergent for several months, the company said. Miller is a veteran of the finance sector, having worked at entities such as merchant banks and businessdevelopmentcompanies, according to his LinkedIn page. and Emergent BioSolutions wasn't one of them!
Ares operates as a businessdevelopmentcompany ( BDC ). It supplies private companies with the capital they need to scale up their operations, with a focus on loans to middle-market businesses, defined as those with revenue of $10 million to $1 billion. Therein lies Ares' opportunity.
Ares ranks as the largest publicly traded businessdevelopmentcompany (BDC). Larger companies have also increasingly turned to direct lending for raising capital in part because of the speed in closing financing deals. Over the last three years, the BDC's total return has handily beaten the S&P's.
Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded businessdevelopmentcompany (BDC) on the market. Its assets under management total $395 billion, with roughly two-thirds of that amount going toward credit financing for middle-market businesses.
Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded businessdevelopmentcompany (BDC) based on market cap. It provides financing to middle-market businesses with a focus on the upper tier of the market. The company's dividend yield is nearly 9.5%.
While many companies pay dividends, businessdevelopmentcompanies (BDCs) represent a unique and potentially lower-risk way of adding substantial passive income to your portfolio. During the past 10 years, Hercules has a total return of 218%. The Motley Fool has no position in any of the stocks mentioned.
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.
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 businessdevelopmentcompany ( BDC ) Ares Capital (NASDAQ: ARCC) is a yield trap.
Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded businessdevelopmentcompany ( BDC ). It provides financing to middle-market businesses that often encounter challenges securing capital from banks. Over the last three years, Ares Capital's total return has more than doubled that of the S&P 500.
Ares Capital is a businessdevelopmentcompany ( 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). Should you invest in it today?
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