The Motley Fool

SEPTEMBER 30, 2024

Ares Capital Ares Capital is the world's largest publicly traded business development company ( BDC ). These specialized entities are popular among income-seeking investors because they can avoid paying income taxes by distributing nearly all of their earnings to shareholders in the form of dividend payments.

Investors 245

Investors Debt Professional Services Stakes 245

The Motley Fool

SEPTEMBER 23, 2024

Ares Capital Ares Capital is a business development company ( BDC ), which means it can legally avoid paying income taxes by distributing nearly all its profit to shareholders as a dividend. For decades now, American banks have been increasingly hesitant to lend money directly to midsize businesses.

Investing 246

Investing Legal Stock Exchanges Capital 246

The Motley Fool

NOVEMBER 29, 2024

As a business development company (BDC) , it must return at least 90% of earnings to shareholders as dividends to be exempt from federal income taxes. The company's business remains strong. billion with 23 new portfolio companies and 51 existing portfolio companies.

Initial Public Offering 177

Initial Public Offering Investors Capital Business Development Companies 177

The Motley Fool

JUNE 20, 2024

Companies that are profitable on a recurring basis, have proven they can navigate economic downturns, and are capable of providing transparent long-term growth outlooks are precisely the type of businesses that investors expect to increase in value over the long run. For instance, the company depends on a strong U.S.

Companies 246

Companies Debt Exchange-Traded Funds Capital 246

The Motley Fool

APRIL 5, 2024

Some are concerned with optimizing their portfolio's performance, while others are more interested in building a stream of recurring income. Regardless of which camp you're in, filling your portfolio with dividend-paying stocks is a great way to achieve your goal. Individual investors generally fall into one of two camps.

Taxes 243

Taxes Legal Capital Shareholders 243

The Motley Fool

JUNE 13, 2024

Even if your priority is growth -- or capital appreciation -- most investors' portfolios benefit from the occasional cash bump. Just as the name suggests, these are companies that own revenue-bearing properties ranging from office buildings to hotels to apartments to warehouses. Like dividends? It specializes in retail space.

Banks 242

Banks Shareholders Capital Business Development Companies 242

The Motley Fool

NOVEMBER 3, 2024

That's because companies rarely commit to distributing a portion of their profits to shareholders unless they're already profitable and likely to stay that way. Dividend-paying businesses have to be extra careful with their cash flows, which tends to benefit investors. of the portfolio. yield that it could raise further.

Legal 130

Legal Capital Debt Shareholders 130

The Motley Fool

AUGUST 3, 2024

Whether you're interested in outperforming the broad market or producing a passive income stream, dividend-paying stocks are what you want in your portfolio. It's a well-documented fact that companies committed to distributing their profits usually outperform companies that don't have a dividend program. in the second quarter.

Buyout 246

Buyout Legal Capital Debt 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. of the portfolio.

Debt 233

Debt Investing Earnings Before Interest Amortization 233

The Motley Fool

APRIL 28, 2024

One of the best ways to supplement portfolio growth is to seek out dividend stocks. Let's break down five companies that are established dividend payers, and assess why holding each of these stocks over a long-term time horizon can lead to massive gains for your portfolio. There are loads of ways to generate passive income.

Leveraged Buyouts 244

Leveraged Buyouts Due Diligence Buyout Shareholders 244

The Motley Fool

OCTOBER 22, 2024

Companies that dole out a dividend to their shareholders on a regular basis tend to be recurringly profitable and time-tested. What follows are three superb ultra-high-yield dividend stocks, all with yields north of 10%, which can confidently be added to income seekers' portfolios right now. Image source: Getty Images.

Debt 246

Debt Initial Public Offering Exchange-Traded Funds Capital 246

The Motley Fool

JULY 29, 2024

As a business development company (BDC) , Ares must return at least 90% of its income to shareholders in the form of dividends for its profits to be exempt from taxes. The company has a lot of income to return with its dividend yield topping 9.2%. Consider when Nvidia made this list on April 15, 2005.

Debt 246

Debt Capital Business Development Companies Taxes 246

The Motley Fool

JUNE 14, 2024

Shares of this business development company boast a trailing dividend yield of a little over 8%, in fact, and that's based on just its ordinary quarterly payout. Sometimes these funds are offered in exchange for equity in the company in question. Like dividends? How Hercules Capital is different. Chart by author.

Capital 130

Capital Business Development Companies Prospects Stakes 130

The Motley Fool

JULY 13, 2023

Is there anyone who doesn't enjoy earning income on their investments each quarter for no work in exchange (besides the recommended occasional portfolio monitoring)? Here are two stocks to consider buying that send a monthly dividend check to their shareholders. Probably not. That's what makes dividend stocks so appealing.

Debt 241

Debt Shareholders Capital Business Development Companies 241

The Motley Fool

MARCH 6, 2024

Portfolio growth can come from many different sources. dividend yield Hercules Capital (NYSE: HTGC) is a business development company (BDC) that specializes in providing capital to venture-backed start-ups. As such, shareholders have cheered the stock for quite some time. Hercules Capital: 10.6%

Leveraged Buyouts 246

Leveraged Buyouts Initial Public Offering Shareholders Exchange-Traded Funds 246

The Motley Fool

DECEMBER 21, 2023

Rather than holding a portfolio of income-producing real estate, AGNC investment holds bundles of mortgage loans made by government-run agencies like Fannie Mae, Freddie Mac, and Ginnie Mae. even if they bolster shareholders' total returns. A big piece of whatever profits it's producing are passed along to shareholders in cash.

Banks 241

Banks Business Development Companies Prospects Capital 241

The Motley Fool

MAY 5, 2024

As the largest publicly traded business development company ( BDC ) in the U.S., Ares provides private companies with the cash they need to expand. It specializes in loans to "middle-market" businesses that typically have sales of between $10 million and $1 billion. The BDC leader's $22.9

Initial Public Offering 243

Initial Public Offering Business Development Companies Capital Private Companies 243

The Motley Fool

OCTOBER 15, 2024

Ares Capital (NASDAQ: ARCC) and PennantPark Floating Rate Capital (NYSE: PFLT) are a pair of well-manged business development companies (BDCs) that offer eye-popping dividend yields. Here's why income-seeking investors want to add them to a diversified portfolio now and hold them for the long run. in the second quarter.

Initial Public Offering 130

Initial Public Offering Professional Services Debt Legal 130

The Motley Fool

APRIL 22, 2024

Additionally, all of these businesses generate consistent, robust cash flow. Subsequently, these excess profits are used for dividends and share buybacks -- both of which are rewarding for shareholders. Rather, he buys larger, more established businesses and doubles down on his winners over a long-term horizon.

Exchange-Traded Funds 236

Exchange-Traded Funds Banks Shareholders Business Development Companies 236

The Motley Fool

JUNE 27, 2023

These companies are willing to distribute their earnings to shareholders, but that doesn't mean they want to offer eye-popping dividend yields. Investors have pushed their stock prices down because they aren't entirely convinced these businesses can continue growing earnings at a healthy pace. Image source: Getty Images.

Shareholders 246

Shareholders Assets Business Development Companies Taxes 246

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. Looking ahead, this REIT's property portfolio appears destined to deliver rising profits. In 2021, U.S. annually through 2031.

Taxes 246

Taxes Investing Prospects Shareholders 246

The Motley Fool

SEPTEMBER 7, 2023

Buying shares of businesses that produce profits and commit to returning those profits to their shareholders is an investing strategy with a terrific track record. PennantPark and similar BDCs make loans to midsized businesses that big banks tend to ignore. during the company's fiscal third quarter ended June 30.

Exchange-Traded Funds 246

Exchange-Traded Funds Debt Earnings Before Interest Amortization 246

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 Earnings Before Interest Banks 130

The Motley Fool

JUNE 8, 2024

Read on to learn more about two top-tier stocks that can help you earn more dividend income from your portfolio. Brookfield Renewable (NYSE: BEPC) (NYSE: BEP) is particularly well suited to deliver gains to shareholders fueled by clean energy. The company has a proven ability to identify projects with superior profit potential.

Shareholders 130

Shareholders Capital Business Development Companies Private Companies 130

The Motley Fool

MARCH 2, 2024

Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC). As a BDC, Ares Capital must return at least 90% of its taxable income to shareholders in the form of dividends. It focuses primarily on providing financing alternatives to the upper end of the middle market.

New York Stock Exchange 240

New York Stock Exchange Buyout Investing Legal 240

The Motley Fool

JUNE 15, 2023

As a REIT, Medical Properties Trust can avoid paying income taxes by distributing at least 90% of earnings to shareholders as dividends. Now that some of that risk has been alleviated , the company has a pretty good chance to continue meeting its dividend obligation. of the total investment portfolio at amortized cost.

Investing 244

Investing Taxes Amortization Debt 244

The Motley Fool

OCTOBER 19, 2024

telecom businesses with a nationwide 5G network, investors can also look forward to steady gains over the long run. PennantPark Floating Rate Capital PennantPark Floating Rate Capital is a business development company ( BDC ) that lends to mid-market companies earning between $10 million and $50 million annually.

Private Equity Firms 130

Private Equity Firms Private Equity Firms Investing Business Development Companies 130

The Motley Fool

MAY 2, 2024

On the other side of the coin, publicly traded companies that don't offer a payout trudged their way to a more modest 4.27% annualized return between 1973 and 2023 and did so while being 18% more volatile than the S&P 500. In other words, they're just the type of businesses that are expected to increase in value over an extended timeline.

Debt 243

Debt Exchange-Traded Funds Public Companies Capital 243

The Motley Fool

FEBRUARY 19, 2024

This is a business development company ( BDC ), which means it can legally avoid paying income taxes by distributing nearly all its profits to shareholders as a dividend. As a BDC, Ares Capital lends to middle-market businesses. of the company's portfolio at fair value was on nonaccrual status at the end of 2023.

Investing 245

Investing Taxes Legal Capital 245

The Motley Fool

SEPTEMBER 18, 2023

These businesses aren't flashy, but they do produce reliable profits. Plus, they're committed to distributing earnings to their shareholders. Like most BDCs, PennantPark lends to middle-market companies that can't get the attention they want from bigger banks. Image source: Getty Images. and higher. dividend yield.

Investing 243

Investing Debt Legal Capital 243

The Motley Fool

JANUARY 6, 2024

The company expects the number of consumers and businesses in fiber-enabled locations to grow 25% above present levels to pass 30 million by the end of 2025. Given its already immense size, AT&T probably won't be the fastest-growing business in your portfolio, but it could be a highly reliable dividend grower in a few years.

Investing 240

Investing Debt Earnings Before Interest Amortization 240

The Motley Fool

JUNE 18, 2023

Since their inception in the 1980s by an act of Congress, business development companies (BDCs) have often delivered market-beating total returns for shareholders. The BDC boasts an investment portfolio valued at $21.1 of its portfolio. billion as of March 31. and dividends per share paid of $1.87

Capital 130

Capital Startups Investing Shareholders 130

The Motley Fool

FEBRUARY 24, 2024

Most American shareholders see their quarterly payments fluctuate with currency exchange rates but the payout has grown every year, in British pounds, since 2007. There are 505 companies in Ares Capital's portfolio and nearly all are backed by private equity sponsors. At recent prices, it offers a 9.8% last year from 11.6%

Private Equity Firms 246

Private Equity Firms Private Equity Firms Legal Capital 246

The Motley Fool

AUGUST 13, 2023

Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded business development company (BDC) in the world. It provides alternative financing to middle-market companies across a wide range of industries. Cohen & Steers Infrastructure Fund definitely offers an ultra-high yield.

Initial Public Offering 246

Initial Public Offering Financing Finance Leveraging 246

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

JUNE 9, 2024

portfolio is chock-full of stocks with long histories of paying attractive dividends. But Berkshire owns several stocks with super-high yields in what you might call Buffett's "secret" portfolio. NEAM manages its own investment portfolio that's separate from Berkshire's portfolio. telecommunications industry.

Investors 130

Investors Capital Asset Management Business Development Companies 130

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