The Motley Fool

JULY 5, 2023

REITs in general make great investment vehicles for income-seeking investors because they can avoid paying income taxes as long as they distribute at least 90% of their profits to shareholders as a dividend. Prospect received new financing in May that will likely result in it resuming payments before the end of 2023.

Investing 246

Investing Taxes Prospects Shareholders 246

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. billion portfolio is spread across 130 portfolio companies. Image source: Getty Images.

Debt 233

Debt Investing Amortization Depreciation 233

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. More importantly, the company has a more stringent risk management approach than most of its peers.

Investing 246

Investing Capital Asset Management Business Development Companies 246

The Motley Fool

NOVEMBER 10, 2024

Ares Capital is a top business development company (BDC). It provides financing to middle-market businesses, which typically generate annual revenue between $100 million and $3 billion. And you'll get a lot of bang for your buck with this stock.

Shareholders 188

Shareholders Capital Business Development Companies Prospects 188

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. Hercules is different from a typical bank as it tends to offer more flexible financing options. As such, shareholders have cheered the stock for quite some time.

Leveraged Buyouts 246

Leveraged Buyouts Initial Public Offering Shareholders Exchange-Traded Funds 246

The Motley Fool

JULY 27, 2023

Verizon An investment of $43,800 is enough to generate $3,333 in annual dividend income from Verizon (NYSE: VZ) at the moment, plus the company's known for steadily raising its payout. yield, and shareholders can reasonably expect another bump in a couple of months. At recent prices, the stock offers a big 7.6%

Investing 245

Investing Prospects Taxes Capital 245

The Motley Fool

FEBRUARY 18, 2024

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.

Investing 239

Investing Capital Business Development Companies Taxes 239

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. Being debt-focused has three key advantages that help support the company's supercharged yield. million of the company's $950.3

Debt 246

Debt Initial Public Offering Investing Capital 246

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. These results shouldn't be a surprise.

Debt 246

Debt Investing Liabilities Private Companies 246

The Motley Fool

JULY 2, 2024

Almost all of the revenue figures are subscription-based, too, which gives shareholders confidence that sales won't swing wildly during any upcoming industry slowdown. Ares is a leading business development company (BDC). That attractive valuation isn't because the company's business is floundering.

Capital 246

Capital Debt Shareholders Stock Market 246

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.

Debt 246

Debt Investing Assets Capital 246

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. This means financing deals will usually have a premium rate that favors the lender.

Debt 240

Debt Initial Public Offering Leveraging Banks 240

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. But there's far more to this story.

Debt 246

Debt Liabilities Assets Capital 246

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. PennantPark pays its dividend on a monthly basis , with the company increasing its payout twice last year. Image source: Getty Images.

Debt 242

Debt Liabilities Capital Business Development Companies 242

The Motley Fool

JUNE 8, 2024

Brookfield Renewable (NYSE: BEPC) (NYSE: BEP) is particularly well suited to deliver gains to shareholders fueled by clean energy. Ares operates as a business development company ( BDC ). Yet most banks pay less attention to these businesses than they do to their corporate clients. Therein lies Ares' opportunity.

Shareholders 130

Shareholders Business Development Companies Capital Private Companies 130

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. There's a risk, though, that earnings fluctuations could result in dividend cuts.

Initial Public Offering 147

Initial Public Offering Conglomerates Debt Capital 147

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). Horizon Technology Finance: Dividend yield 11.4% dividend yield.

Leveraged Buyouts 130

Leveraged Buyouts Exchange-Traded Funds Private Equity Firms Private Equity Firms 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). Should you invest in it today?

Capital 130

Capital Debt Amortization Depreciation 130

The Motley Fool

MARCH 25, 2024

Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC). The company provides financing to middle-market businesses with a special focus on the upper end of that market. The company's total return has trounced the S&P 500 over the long run.

Finance 130

Finance Financing Capital Business Development Companies 130

The Motley Fool

NOVEMBER 24, 2023

Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded business development company (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.

Business Development Companies 130

Business Development Companies Capital Finance Financing 130

The Motley Fool

JANUARY 22, 2024

Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (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%.

Initial Public Offering 130

Initial Public Offering Business Development Companies Prospects Capital 130

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.

Capital 130

Capital Amortization Depreciation Debt 130

The Motley Fool

FEBRUARY 27, 2024

While many companies pay dividends, business development companies (BDCs) represent a unique and potentially lower-risk way of adding substantial passive income to your portfolio. Because BDCs are required to pay out at least 90% of their taxable income to shareholders each year.

Leveraged Buyouts 130

Leveraged Buyouts Due Diligence Initial Public Offering Exchange-Traded Funds 130

The Motley Fool

JUNE 27, 2024

Business development companies (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. Ares Capital: 9.3%

Leveraged Buyouts 130

Leveraged Buyouts Initial Public Offering Buyout Venture Capital 130

The Motley Fool

JUNE 18, 2023

That yield is so high in large part because Ares is a business development company (BDC). BDCs provide financing to small-to-medium-sized businesses. Importantly, they must return at least 90% of their income to shareholders in the form of dividends to be exempt from federal taxes.

Stakes 130

Stakes Capital Asset Management Business Development Companies 130

The Motley Fool

DECEMBER 15, 2023

While many different types of companies pay dividends, one of the more generous types is business development companies (BDCs). BDCs are required to pay out at least 90% of taxable income to shareholders in the form of a dividend. One of the components of a diversified portfolio is dividend investments.

Returns 130

Returns Initial Public Offering Private Equity Firms Private Equity Firms 130

The Motley Fool

NOVEMBER 18, 2024

Ares Capital is a leading business development company (BDC). It invests in and provides direct lending to middle-market businesses that generate annual revenue between $10 million and $1 billion. As a BDC, Ares Capital must return at least 90% of its earnings to shareholders as dividends. billion portfolio.

Portfolios 100

Portfolios Asset Management Capital Shareholders 100

The Motley Fool

FEBRUARY 17, 2024

Not counting corporate-level write-downs, more than 80% of last year's pre-tax income came from the automobile industry, with more than two-thirds of it being driven by auto financing alone. That was an incredibly fortunate business mix in 2021 and then again in 2023, when demand for new cars was huge.

Banks 130

Banks Capital Liabilities Assets 130

The Motley Fool

OCTOBER 12, 2024

AT&T is one of just three telecom companies with a nationwide 5G network, so investors can reasonably rely on its consumer-broadband business to drive growth for many years to come. Most BDCs originate relatively high-interest loans to established mid-sized businesses that already earn money. per share this year.

Business Development Companies 100

Business Development Companies Capital Taxes Finance 100

Pension Pulse

JANUARY 31, 2024

That borrowers can secure loans through several non-bank models provides a wider range of competitive financing sources that strengthens our financial system. annually to investors since inception, the company said in a letter to shareholders on Monday. 7, 2021, has distributed 10.5% over the three years. for Class I shares.

Banks 59

Banks Pension Funds Financial Institutions Investing 59

Pension Pulse

SEPTEMBER 28, 2023

Led by PSP, the consortium also comprises entities controlled by the world's largest berry company Driscoll's Inc and the British Columbia Investment Management Corporation (BCI). Accordingly, the Costa board has unanimously recommended that Costa shareholders vote in favour of the scheme, subject to the various customary conditions.”

Shareholders 52

Shareholders Finance Financing Banks 52

Blackstone

NOVEMBER 16, 2023

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 Business Development Companies (BDCs) and Global Head of Market Research for Blackstone Credit.

Leveraging 52

Leveraging Banks Debt Leveraged Buyouts 52

The Motley Fool

MARCH 30, 2025

REITs must return at least 90% of their profits to shareholders as dividends to be exempt from federal income taxes. Wondering what kind of real estate you'd partially own if you were a Realty Income shareholder? This real estate investment trust ( REIT ) owns over 15,600 properties spread across all 50 U.S. states, plus the U.K.

Collateral 246

Collateral Investing Debt Shareholders 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. Wake up with Breakfast news in your inbox every market day. Sign Up For Free 1.

Investing 130

Investing Taxes Amortization Depreciation 130

The Motley Fool

DECEMBER 23, 2024

Income-seeking investors looking for ultra-high-yield dividend stocks can find what they're looking for in the healthcare and finance sectors. 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.

Portfolios 130

Portfolios Financial Institutions Amortization Depreciation 130

The Motley Fool

MARCH 5, 2025

Learn More Companies that dole out a dividend to their shareholders on a regular basis have often demonstrated that their operating model is time-tested. More importantly, these businesses are almost always recurringly profitable and fully capable of providing a clear growth outlook. Where to invest $1,000 right now?

Debt 130

Debt Capital Business Development Companies Portfolios 130

The Motley Fool

JANUARY 6, 2025

Stock Business Summary Forward Dividend Yield 1. Ares Capital (NASDAQ: ARCC) One of the largest business development companies (BDCs) 8.65% 2. Bank of America (NYSE: BAC) A large financial services company providing banking and financial products 2.34% 3. Finance and company websites.

Finance 245

Finance Financing Banks Financial Services 245