Dividend Investing Ideas Center
Have you ever wished for the safety of bonds, but the return potential...
Despite rising rates, the economy is still kicking. Aside from housing, economic data hasn’t deteriorated. And in that, the need and desire for capital are still strong. For our latest pick on our Best Monthly Dividend Stocks List, this need has continued to bear fruit and provide a hefty yield for its shareholders.
Our pick is a business development company (BDC). These firms provide loans and other funding needs to the middle market – firms too big for their local bank but not big enough to tap a Wall Street investment bank to issue bonds. It’s a fertile niche, but one that pays investors plenty of dividends.
For our pick, the wins lie within its lending niche. By focusing on senior and secured debt at a floating rate, our pick can make the most of the current inflationary environment and provide some safety to its own bottom line. Its cash flow rises in line with rates, and if there is trouble, it gets first crack at assets.
The end result for investors is a high monthly yield that offers stability and plenty of inflation protection.
You can check out the Best Monthly Dividend Stocks List to explore all the stocks.