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.

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The Motley Fool

OCTOBER 20, 2024

You could fill your portfolio with stocks that offer ultra-high yields upfront, but dividend yields generally rise because the market doesn't expect significant increases. Read on to see why investors want to add these stocks to their portfolios and hold them for at least a decade. The stock offers a 3.4% annually since 2020.

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The Motley Fool

DECEMBER 23, 2024

Dividend stocks reign supreme Companies that pay a regular dividend to their shareholders are almost always profitable on a recurring basis, as well as time-tested. BDCs are a type of business that invests in the equity (common and preferred stock) and/or debt of middle-market companies. million out of the company's $1.75

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The Motley Fool

OCTOBER 21, 2024

Ares Capital Ares Capital is the world's largest publicly traded business development company, or BDC. They are also popular with income-seeking investors because they can legally avoid paying income taxes by distributing nearly all their profits to shareholders as dividends. of the total portfolio.

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Legal Capital Business Development Companies Taxes 244

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.

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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.

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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.

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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%

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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.

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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.

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Investing Taxes Prospects Shareholders 246

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.

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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.

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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.

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Exchange-Traded Funds Debt Amortization Depreciation 246

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.

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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

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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.

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Banks Business Development Companies Prospects Capital 241

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.

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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.

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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.

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Debt Capital Business Development Companies Taxes 246

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.

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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.

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Debt Exchange-Traded Funds Public Companies Capital 243

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%

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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.

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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.

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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.

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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. BDCs are companies that invest in the debt and/or equity (common/preferred stock) of middle-market businesses.

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Debt Initial Public Offering Investing Capital 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. Ares Capital doesn't lend to every business that comes calling.

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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.

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Investing Capital Asset Management Business Development Companies 246

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.

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Debt Initial Public Offering Exchange-Traded Funds Capital 246

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.

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Investing Debt Amortization Depreciation 240

The Motley Fool

JUNE 23, 2023

Companies that offer a regular dividend to their shareholders are usually profitable on a recurring basis and time-tested. However, the best aspect of this business is the composition of its debt investment portfolio. billion debt investment portfolio is first-lien secured. annualized return for the non-payers.

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Debt Investing Asset Management Assets 246

The Motley Fool

DECEMBER 24, 2023

Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded business development company (BDC). To be exempt from paying federal taxes, BDCs must return at least 90% of their income to shareholders in the form of dividends.

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Capital Business Development Companies Taxes Shareholders 239

The Motley Fool

AUGUST 23, 2024

Hercules Capital Hercules Capital (NYSE: HTGC) is a business development company (BDC) that specializes in high-yield loans to venture-backed companies. Moreover, Hercules also generally attaches warrants to its deals, which act as a sweetener if a portfolio company ends up getting acquired or goes public.

Exchange-Traded Funds 246

Exchange-Traded Funds Banks Capital Business Development Companies 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%. billion investment portfolio is exposed to credit-risk transfer and non-agency assets. The company raised its monthly payout twice last year. Including equity stakes, the company's roughly $1.07

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Debt Investing Assets Capital 246

The Motley Fool

DECEMBER 17, 2023

Ares Capital is organized as a business development company (BDC). Regulations require that BDCs return a minimum of 90% of taxable income to shareholders in the form of dividends. I think you can safely bank on that dividend payout at least staying at the current level.

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Investing Capital Business Development Companies Prospects 238

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.

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The Motley Fool

FEBRUARY 22, 2024

Dividend stocks may not be highfliers like the " Magnificent Seven " but can generally increase in value over time and make their patient shareholders richer. BDCs are companies that invest in the debt or equity (common and preferred stock) of middle-market businesses (i.e, generally small and unproven companies).

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