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But what's most important to investors is that dividend stocks have crushed non-payers in the return column over the last half-century. See 3 Double Down stocks *Stock Advisor returns as of December 16, 2024 Sean Williams has positions in PennantPark Floating Rate Capital. The Motley Fool has a disclosure policy.
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.
A pair of misses in the fourth quarter Ares, a prominent businessdevelopmentcompany (BDC) , reported its fourth-quarter and full-year 2024 results. After all, Stock Advisors total average return is 907% a market-crushing outperformance compared to 176% for the S&P 500.*
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.
As a businessdevelopmentcompany (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%. The company should be able to keep increasing FCF.
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.
The businessdevelopmentcompany (BDC) pays a juicy dividend yield of roughly 9.2%. However, the company has 15 years of steady to growing dividends. The middle-market companies that Ares targets have delivered five-year revenue growth of more than 50% over the last five years, underscoring how healthy this market is.
You make a smart investment in an outstanding business, and it rewards you with bountiful cash returns year after year. Here are two high-quality companies that could pay you lucrative cash dividends for the rest of your life. As the largest publicly traded businessdevelopmentcompany ( BDC ) in the U.S.,
Hercules Capital Hercules Capital is a businessdevelopmentcompany ( BDC ) that lets everyday investors get in on the ground floor with innovative tech and life science businesses. Its investments include a mixed bag of successful companies, including Axsome Therapeutics , Palantir Technologies , and Transmedics Group.
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. As a BDC, Ares Capital must return at least 90% of its income to shareholders in the form of dividends.
It can be a tricky business , to be sure. In a normal economic environment, AGNC's shorter-term borrowing costs are less than the returns it achieves on the long-term mortgage loans it's holding. When short-term interest rates push above longer-term rates, however, the business model unravels. PBR Dividend data by YCharts.
If you don't have enough capital to spread among dozens of qualified candidates, or a team of experienced analysts who can help you recognize potential winners, you would be more likely to lose your shirt by putting your money into such businesses than to realize significant gains over the long run.
During the 50-year period between 1973 and 2023, dividend-paying stocks in the benchmark S&P 500 index generated a 9.17% average annual return. The average annual return produced by non-dividend payers in the same index was just 4.27% over the same time frame, according to Ned Davis Research and Hartford Funds.
Ares Capital Ares Capital is a businessdevelopmentcompany ( BDC ) that offers a huge 9.3% With such a high yield up front, though, simply maintaining its current payout is enough to deliver a return that satisfies most investors. The 10 stocks that made the cut could produce monster returns in the coming years.
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.
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. I expect these efforts will translate to solid total returns over the rest of the decade.
During a 50-year period that ended in 2023, non-dividend-paying stocks in the benchmark S&P 500 index delivered a 4.27% average annual return. Ares Capital Corporation Ares Capital is a businessdevelopmentcompany, or BDC. 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. Ares Capital has generated market-beating total returns since its initial public offering in 2004.
The company has paid a stable-to-growing dividend for 56 consecutive quarters. Strong total returns. Ares Capital has handily outperformed the S&P 500 since the company's IPO in 2004 as well as over the last three-year and fie-year periods. What's better than that kind of dependable yield? below its net asset value.
Nearly half of all Berkshire Hathaway's current value is made up of solid-but-small companies you can't directly invest in. In many regards, this largely makes Berkshire a businessdevelopmentcompany (or BDC ) or a private equity outfit, which often boast market-beating performances.
Before you plow every penny you can find into these two stocks, it's important to remember that an especially high yield means the market is worried the underlying business can't continue meeting and raising its dividend commitment. The 10 stocks that made the cut could produce monster returns in the coming years.
Ares Capital Ares Capital (NASDAQ: ARCC) is America's largest businessdevelopmentcompany ( BDC ). The 10 stocks that made the cut could produce monster returns in the coming years. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. The Motley Fool recommends CVS Health.
Ares Capital Ares Capital is the world's largest publicly traded businessdevelopmentcompany ( BDC ). The 10 stocks that made the cut could produce monster returns in the coming years. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
Ares Capital Ares Capital is the world's largest publicly traded businessdevelopmentcompany, or BDC. The 10 stocks that made the cut could produce monster returns in the coming years. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
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. During the past decade, Horizon stock has a total return of more than 160%. Ares Capital: 9.6%
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. Data source: YCharts. Data source: YCharts.
Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded businessdevelopmentcompany (BDC). To be exempt from paying federal taxes, BDCs must return at least 90% of their income to shareholders in the form of dividends. Can Ares Capital sustain its dividend at such an ultra-high level?
This is a businessdevelopmentcompany (BDC), which essentially means it makes relatively high-interest loans to businesses that are large, but not large enough to get loans from traditional banks. The 10 stocks that made the cut could produce monster returns in the coming years.
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.
This is a businessdevelopmentcompany ( 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. The 10 stocks that made the cut could produce monster returns in the coming years.
The company basically owns a portfolio of mortgages and makes money off the spread between the yield of its investments and the short-term funding costs to buy them. It locks in the spreads with hedges and then uses leverage to increase its returns. The 10 stocks that made the cut could produce monster returns in the coming years.
Ares Capital is organized as a businessdevelopmentcompany (BDC). Regulations require that BDCs return a minimum of 90% of taxable income to shareholders in the form of dividends. The 10 stocks that made the cut could produce monster returns in the coming years. The Motley Fool has a disclosure policy.
In particular, "The Power of Dividends: Past, Present, and Future" compared the performance of dividend-paying companies to non-payers over a 50-year period (1973-2023). The report found that dividend stocks more than doubled the average annual return of non-payers (9.17% vs. 4.27%). Image source: Getty Images.
Ares Capital Ares Capital is America's largest businessdevelopmentcompany (BDC), which essentially means it's a lender for mid-market businesses throughout America. As a BDC, Ares Capital must return at least 90% of its profits to investors as a dividend. At recent prices, it offers a 9.5% dividend yield.
Ares Capital Ares Capital (NASDAQ: ARCC) is America's largest publicly traded businessdevelopmentcompany ( BDC ). Middle-market businesses generally have over $10 million in annual revenue, but they still can't get America's big banks to give them loans. The Motley Fool has no position in any of the stocks mentioned.
Ares Capital Ares Capital (NASDAQ: ARCC) is a businessdevelopmentcompany ( BDC ), which means it lends to companies that are too big for small business loans but still too small to work with large banks. The average return on Ares Capital's debt investments rose to 12.5% last year from 11.6%
Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded businessdevelopmentcompany (BDC). As a BDC, Ares Capital must return at least 90% of its taxable income to shareholders in the form of dividends. The 10 stocks that made the cut could produce monster returns in the coming years.
From 1964 to 2023, Berkshire Hathaway returned 4,384,748%. While these returns are impressive, believe it or not Buffett employed a relatively straightforward investment style. The 10 stocks that made the cut could produce monster returns in the coming years. Looked at another way, the fund's compounded annual gain of 19.8%
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. Hercules Capital Hercules Capital (NYSE: HTGC) is a businessdevelopmentcompany (BDC). yield and prepare to hold for the long-run.
Companies in the benchmark S&P 500 index that initiated a dividend or grew their payout over the 50-year period from 1973 through 2022 delivered a 10.24% average annual return. This businessdevelopmentcompany (BDC) makes monthly payments, and it offers an eye-popping 11.3% Image source: Getty Images.
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.
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. average annual return, according to Hartford Funds and Ned Davis Research. This BDC pays dividends monthly. At recent prices, it offers a huge 11.6%
Ares Capital Ares Capital (NASDAQ: ARCC) reigns as the largest publicly traded businessdevelopmentcompany (BDC). It provides financing primarily to middle-market businesses. See the 10 stocks *Stock Advisor returns as of July 3, 2023 Keith Speights has positions in Devon Energy and Medical Properties Trust.
Although other asset classes have delivered positive nominal returns, including bonds, housing, and various commodities, such as gold, none have come close to matching the annualized total return of stocks, including dividends, over the last century. The 10 stocks that made the cut could produce monster returns in the coming years.
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