As the economy has been mixed and regulation has grown, many banks have begun to clamp down on their lending activities in certain segments of the marketplace. This has created a big niche waiting to be filled. And for those firms like our latest Best Monthly Dividend Stocks List pick, filling that niche has resulted in some hefty cash flow and profits! Investors have profited too with a nearly 11% monthly dividend yield.
Our pick is what is called a business development company (BDC), lending out money to the middle market. This remains a very profitable niche. The real win for our pick remains its private equity (PE) sponsor. It’s been able to use that position to its advantage, offering a variety of loans to firms backed by PE sponsors. More recently, the firm has been able to leverage its position and PE sponsor into new partnerships for lending.
All of which have continued to grow book value and balance sheet health.
For investors looking for a high monthly yielding firm, our BDC pick remains a top choice for portfolios.
You can check out the Best Monthly Dividend Stocks List to explore all the stocks.
