We take a look at the action in business development companies through the third week of July and highlight some of the key themes we are watching. BDCs outperformed most income sectors so far in July. Q2 earnings season should show flat net investment income but modest NAV gains, supported by tighter high-yield credit spreads.
There are many reasons to consider buying shares of Main Street Capital (MAIN 0.41%). The main one is the reliable and attractive dividend income it provides to investors.
The S&P 500 provides a meager 1.2% yield, besides a roller-coaster ride on a regular basis. It may be a reasonably good investment for younger investors when they are in their prime accumulation phase. If you are a retiree or someone who depends on a regular income stream from your investment portfolio, the last thing you want is to worry about when to sell shares to raise income. We will prese...
Some companies issue what are called special dividends: irregular, one-time payouts that don't follow the normal cycle and often differ significantly in amount. MAIN chooses to issue these sometimes lumpy distributions when it monetizes portfolio investments, such as exiting a successful equity stake. What Costco lacks in regular dividend income, it has historically made up for with irregular w...
Investors love dividend stocks, especially those with high yields, because they provide a substantial income stream and offer significant total return potential.
The value proposition for BDCs is high dividends with steady growth, but most BDCs fail to deliver on this. In the article, I elaborate on two BDC gems that present durable income and value offerings. Personally, I'm long both of them in my income-focused portfolio.
With inflation sticky and rate cuts unlikely in 2024, investors should consider repositioning into high-yield stocks to offset volatility. Ares Capital (ARCC) and Blackstone Secured Lending (BXSL) offer strong fundamentals, high yields, and benefit from higher-for-longer interest rates. Verizon (VZ) and Realty Income (O) provide attractive yields and blue-chip stability, despite near-term headw...
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