Dividend Investing Ideas Center
Have you ever wished for the safety of bonds, but the return potential...
Access to capital. It’s the life-blood of the financial system. The problem is, getting access to those needed funds is a little difficult. Particularly, if the company is stuck in the middle and isn’t publicly traded. However, providing this much-needed capital has been a gold mine for our latest Best Monthly Dividend Stocks List pick.
Our pick is a so-called business development company (BDC). These firms provide loans and other funding needs to the so-called middle market – firms too big for their local bank but not big enough to tap a Wall Street investment bank/issue bonds. It’s a fertile niche, but one that pays investors plenty of dividends.
Thanks to the BDC tax structure, much of our firm’s cash flows funnel back to its shareholders as rich dividends. Add in a small, regulated amount of leverage and you get a very juicy 11.5% dividend yield. And thanks to recent management policy changes, that dividend now flows back to investors monthly.
With the need for capital and business support still growing, especially in these trying times, our pick makes for a great way to play the growing economy.
In order to make room for our new BDC pick, we’ve been forced to remove a warehouse owner from the portfolio.
You can check out the Best Monthly Dividend Stocks List to explore all the stocks.