The Motley Fool

FEBRUARY 19, 2024

The company reported total revenue that rose 1.4% In 2022, AT&T slashed its dividend in half to adjust for the sale of its media assets and still hasn't raised the payout. As a BDC, Ares Capital lends to middle-market businesses. At recent prices, the stock offers a tempting 6.6% at recent prices.

Investing 245

Investing Taxes Legal Capital 245

The Motley Fool

MARCH 6, 2024

dividend yield Hercules Capital (NYSE: HTGC) is a business development company (BDC) that specializes in providing capital to venture-backed start-ups. Since Hercules is a BDC, it's required to pay out 90% of its taxable income to shareholders each year in the form of a dividend. Hercules Capital: 10.6% Rithm Capital: 9.1%

Leveraged Buyouts 246

Leveraged Buyouts Initial Public Offering Shareholders Exchange-Traded Funds 246

The Motley Fool

APRIL 7, 2024

It's the largest publicly traded business development company (BDC). As a BDC, Ares Capital must return at least 90% of its income to shareholders as dividends to be exempt from federal taxes. The company continues to generate plenty of income to return as evidenced by its dividend yield of nearly 9.4%.

Capital 130

Capital Business Development Companies Prospects Assets 130

The Motley Fool

JUNE 23, 2023

Morgan Asset Management, a division of money-center bank JPMorgan Chase , released a study that compared the performance of publicly traded companies that initiated and grew their payouts between 1972 and 2012 to public companies that didn't offer a payout over the same timeline. In 2013, J.P. Image source: Getty Images.

Investing 246

Investing Debt Asset Management Assets 246

The Motley Fool

SEPTEMBER 7, 2023

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. Selling off its media assets helped reduce AT&T's debt load, but the company was still sitting on $132 billion in net debt at the end of June.

Exchange-Traded Funds 246

Exchange-Traded Funds Debt Earnings Before Interest Amortization 246

The Motley Fool

FEBRUARY 24, 2024

Most American shareholders see their quarterly payments fluctuate with currency exchange rates but the payout has grown every year, in British pounds, since 2007. There are 505 companies in Ares Capital's portfolio and nearly all are backed by private equity sponsors. At recent prices, it offers a 9.8%

Private Equity Firms 246

Private Equity Firms Private Equity Firms Legal Capital 246

The Motley Fool

FEBRUARY 8, 2024

By comparison, companies that didn't offer a payout to their shareholders produced an average annual return of just 3.95%. In simple terms, mortgage REITs look to borrow money at the lowest possible short-term rate and use this capital to purchase higher-yielding long-term assets. billion of its $60.2

Investing 246

Investing Debt Assets Capital 246

The Motley Fool

JANUARY 5, 2024

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, business development companies (BDCs) represent a unique opportunity. The company's 9.6%

Mergers and Acquisitions 246

Mergers and Acquisitions Leveraged Buyouts Due Diligence Portfolios 246

The Motley Fool

FEBRUARY 18, 2024

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.

Investing 239

Investing Capital Business Development Companies Taxes 239

The Motley Fool

JUNE 14, 2023

Ares Capital: A 10.05% yield Ares Capital (NASDAQ: ARCC) is a business development company, or BDC. These specialized investment vehicles can avoid paying income taxes by distributing at least 90% of their profits to shareholders. AT&T cut its dividend in 2022, but it also spun off its unpredictable media assets.

Banks 243

Banks Amortization Debt Capital 243

The Motley Fool

DECEMBER 3, 2023

It's a business development company (BDC) that's required to distribute at least 90% of its income to shareholders in the form of dividends to be exempt from federal taxes. It also recently completed the acquisition of alternative asset manager Sculptor Capital Management.

Investing 246

Investing Capital Business Development Companies Asset Management 246

The Motley Fool

DECEMBER 17, 2023

Ares Capital is organized as a business development company (BDC). Regulations require that BDCs return a minimum of 90% of taxable income to shareholders in the form of dividends. I think you can safely bank on that dividend payout at least staying at the current level.

Investing 238

Investing Capital Business Development Companies Prospects 238

The Motley Fool

MARCH 25, 2024

Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC). The company provides financing to middle-market businesses with a special focus on the upper end of that market. BDCs are required to return at least 90% of earnings to shareholders in the form of dividends.

Capital 130

Capital Financing Finance Business Development Companies 130

The Motley Fool

JANUARY 23, 2024

and has returned $25 billion in aggregate dividends to its shareholders since becoming a public company in October 1997. Mortgage REITs like Annaly want to borrow money at low short-term lending rates and use this capital to buy higher-yielding long-term assets, such as mortgage-backed securities (MBS).

Debt 245

Debt Public Companies Capital Assets 245

The Motley Fool

AUGUST 25, 2023

Companies that regularly dole out a dividend to their shareholders tend to be profitable on a recurring basis, are time-tested, and can provide investors with transparent long-term growth outlooks. Net-interest margin" refers to the average yield AGNC nets from its owned assets less the average yield on what it's borrowed.

Debt 246

Debt Investing Initial Public Offering Capital 246

The Motley Fool

JUNE 18, 2023

Since their inception in the 1980s by an act of Congress, business development companies (BDCs) have often delivered market-beating total returns for shareholders. There are many different types of investment vehicles that are capable of building wealth for patient investors. Image source: Getty Images. during the year.

Capital 130

Capital Investing Startups Shareholders 130

The Motley Fool

MARCH 17, 2024

But with so many opportunities out there, it's challenging to identify companies that both pay dividends and consistently perform at a high level. One good place to source ideas is to look at business development companies (BDCs). He owns a position in Ares in his secret portfolio -- through New England Asset Management.

Leveraged Buyouts 130

Leveraged Buyouts Exchange-Traded Funds Private Equity Firms Private Equity Firms 130

The Motley Fool

JANUARY 6, 2024

The businesses underlying these stocks are still growing thanks to strong advantages over their competitors. AT&T AT&T (NYSE: T) slashed its payout in 2022 following the sale of its media assets, but the company still offers a yield that's miles above average. Shares of the telecom giant offer a juicy 6.5%

Investing 240

Investing Debt Earnings Before Interest Amortization 240

The Motley Fool

APRIL 5, 2024

The Motley Fool's in-house research team finds that while these investors allocate about 31% of their investable assets to ordinary listed stocks, they allocate an average of 27% of their portfolios to private equity investments. It's officially structured as a business development company, or BDC.

Stakes 130

Stakes Private Equity Firms Private Equity Firms Investing 130

The Motley Fool

NOVEMBER 24, 2023

Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded business development company (BDC) on the market. Its assets under management total $395 billion, with roughly two-thirds of that amount going toward credit financing for middle-market businesses.

Business Development Companies 130

Business Development Companies Capital Shareholders Financing 130

The Motley Fool

SEPTEMBER 18, 2023

Instead, Ares Capital is one of the stocks owned by New England Asset Management (NEAM). Ares Capital ranks as the largest publicly traded business development company (BDC). It provides financing to middle-market businesses that banks sometimes shun. That hasn't been a problem for Ares Capital.

Initial Public Offering 147

Initial Public Offering Conglomerates Capital Debt 147

The Motley Fool

DECEMBER 5, 2023

Companies that pay a regular dividend to their shareholders tend to be profitable on a recurring basis and time-tested. These are businesses that have demonstrated their ability to navigate a challenging economic climate and come out stronger on the other side. million of the company's $906.3 To begin with, all but $0.1

Debt 246

Debt Liabilities Assets Capital 246

The Motley Fool

JUNE 18, 2023

However, Buffett does own shares of the stock via Berkshire's subsidiary, New England Asset Management (NEAM). That yield is so high in large part because Ares is a business development company (BDC). BDCs provide financing to small-to-medium-sized businesses. Ares Capital offers a dividend yield of over 10.3%.

Stakes 130

Stakes Capital Business Development Companies Asset Management 130

The Motley Fool

JULY 14, 2023

Companies that offer a regular payout to their shareholders are usually profitable on a recurring basis and time-tested. PennantPark has the highest yield among the three companies listed here (11.4%) and doles out its payout on a monthly basis. Roughly 10 years ago, J.P.

Investing 246

Investing Debt Business Development Companies Capital 246

The Motley Fool

FEBRUARY 17, 2024

All told, it boasts more than $600 billion in assets. except it's not nearly as big as the likes of JPMorgan Chase or Bank of America , both of which are tending to more than $2 trillion worth of assets. Ares Capital shares may be a conventional stock, but this isn't a conventional company. That's big. It may prevent U.S.

Banks 130

Banks Capital Liabilities Business Development Companies 130

Pension Pulse

JANUARY 31, 2024

annually to investors since inception, the company said in a letter to shareholders on Monday. Those are the publicly traded asset classes that private credit is most comparable to. That’s because its net asset value dipped in 2022 and increased only 0.6% 7, 2021, has distributed 10.5% The fund has ballooned to $50.7

Banks 59

Banks Pension Funds Investing Financial Institutions 59

The Motley Fool

NOVEMBER 30, 2023

Though a 15% yield is typically viewed as unsustainable for most companies, Annaly has supported an average yield of around 10% over the past two decades and returned $25 billion to shareholders since its initial public offering in 1997. Another reason income investors can trust Annaly is its focus on agency assets.

Debt 240

Debt Initial Public Offering Leveraging Capital 240

Pension Pulse

SEPTEMBER 28, 2023

Led by PSP, the consortium also comprises entities controlled by the world's largest berry company Driscoll's Inc and the British Columbia Investment Management Corporation (BCI). Accordingly, the Costa board has unanimously recommended that Costa shareholders vote in favour of the scheme, subject to the various customary conditions.”

Shareholders 52

Shareholders Banks Financing Finance 52

The Motley Fool

DECEMBER 7, 2023

Each of these stocks is as much a bet on an industry or a business model as it is a bet on the company itself and requires a multi-decade commitment. Even so, its dividend payment's long-term growth accounts for a great deal of long-term shareholders' net gains -- directly and indirectly -- by virtue of making the stock more valuable.

Banks 130

Banks Exchange-Traded Funds Capital Business Development Companies 130

Blackstone

NOVEMBER 16, 2023

4 To discuss the opportunities in this rising asset class and how to navigate the benefits and challenges of higher-for-longer rates, I welcome, as indicated below, the perspectives of Jonathan Bock, Co-CEO of Blackstone’s Business Development Companies (BDCs) and Global Head of Market Research for Blackstone Credit.

Leveraging 52

Leveraging Banks Debt Leveraged Buyouts 52