The Motley Fool

DECEMBER 4, 2023

Businesses usually become profitable on a recurring basis long before they commit to a dividend program. Once they make such a commitment, returning a portion of profits to shareholders forces management teams to make smarter decisions. Image source: Getty Images. yield at recent prices. This figure fell to a very manageable 1.2%

Debt 233

Debt Investing Earnings Before Interest Amortization 233

The Motley Fool

JULY 5, 2023

REITs in general make great investment vehicles for income-seeking investors because they can avoid paying income taxes as long as they distribute at least 90% of their profits to shareholders as a dividend. Right now, you can secure $2,000 in annual dividend income from Physicians Realty Trust with an investment of around $30,400 up front.

Investing 246

Investing Taxes Prospects Shareholders 246

The Motley Fool

MAY 7, 2024

These three stand out because their underlying businesses appear capable of meeting their current obligations and raising their yields higher in the years ahead. Hercules Capital Hercules Capital is a business development company ( BDC ) that allows anyone with a brokerage account to participate in exciting venture capital investments.

Investing 188

Investing Venture Capital Debt Capital 188

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. PennantPark and similar BDCs make loans to midsized businesses that big banks tend to ignore. This BDC pays dividends monthly. At recent prices, it offers a huge 11.6%

Exchange-Traded Funds 246

Exchange-Traded Funds Debt Earnings Before Interest Amortization 246

The Motley Fool

JUNE 27, 2023

These companies are willing to distribute their earnings to shareholders, but that doesn't mean they want to offer eye-popping dividend yields. Investors have pushed their stock prices down because they aren't entirely convinced these businesses can continue growing earnings at a healthy pace. Image source: Getty Images.

Assets 246

Assets Shareholders Business Development Companies Taxes 246

The Motley Fool

JUNE 15, 2023

As a REIT, Medical Properties Trust can avoid paying income taxes by distributing at least 90% of earnings to shareholders as dividends. Now that some of that risk has been alleviated , the company has a pretty good chance to continue meeting its dividend obligation. and nine other countries.

Investing 244

Investing Taxes Amortization Debt 244

The Motley Fool

AUGUST 13, 2023

Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded business development company (BDC) in the world. It provides alternative financing to middle-market companies across a wide range of industries.

Initial Public Offering 246

Initial Public Offering Business Development Companies Leveraging Financing 246

The Motley Fool

DECEMBER 24, 2023

Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded business development company (BDC). To be exempt from paying federal taxes, BDCs must return at least 90% of their income to shareholders in the form of dividends.

Capital 239

Capital Business Development Companies Taxes Shareholders 239

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. British American Tobacco Cigarette sales volumes have been declining for decades, but British American Tobacco (NYSE: BTI) still raises its dividend consistently.

Private Equity Firms 246

Private Equity Firms Private Equity Firms Legal 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. BDCs are required to pay out 90% of their taxable income to investors each year.

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

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

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. and dividends per share paid of $1.87

Capital 130

Capital Investing Startups Shareholders 130

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

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).

Leveraged Buyouts 130

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

The Motley Fool

JANUARY 6, 2024

As one of three giant telecom businesses in America, there's a very good chance that rising broadband revenues will allow it to keep raising that payout for at least another decade. Ares Capital Ares Capital (NASDAQ: ARCC) is a business-development company ( BDC ) that offers a huge 9.4% yield at recent prices.

Investing 240

Investing Debt Earnings Before Interest Amortization 240

The Motley Fool

SEPTEMBER 18, 2023

These businesses aren't flashy, but they do produce reliable profits. Plus, they're committed to distributing earnings to their shareholders. If so, these ultra-high-yield dividend stocks could be exactly what you're looking for. Image source: Getty Images. At recent prices, these stocks offer ultra-high yields of 7.6% and higher.

Investing 243

Investing Debt Legal Capital 243

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.

Banks 243

Banks Amortization Debt Capital 243

The Motley Fool

JANUARY 22, 2024

Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC) based on market cap. It provides financing to middle-market businesses with a focus on the upper tier of the market. The company's dividend yield is nearly 9.5%.

Initial Public Offering 130

Initial Public Offering Business Development Companies Capital Prospects 130

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 Business Development Companies Financing Finance 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

JULY 27, 2023

Verizon An investment of $43,800 is enough to generate $3,333 in annual dividend income from Verizon (NYSE: VZ) at the moment, plus the company's known for steadily raising its payout. yield, and shareholders can reasonably expect another bump in a couple of months. At recent prices, the stock offers a big 7.6%

Investing 245

Investing Prospects Taxes Capital 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. Including buybacks, it's returned nearly $50 billion to its shareholders since its initial public offering (IPO) in July 1998.

Debt 246

Debt Investing Initial Public Offering Capital 246

The Motley Fool

SEPTEMBER 18, 2023

Ares Capital ranks as the largest publicly traded business development company (BDC). It provides financing to middle-market businesses that banks sometimes shun. There's a risk, though, that earnings fluctuations could result in dividend cuts.

Initial Public Offering 147

Initial Public Offering Conglomerates Capital Debt 147

The Motley Fool

AUGUST 23, 2023

A yield trap can come about for a few reasons, including a burdensome debt load, a declining business, or an elevated dividend payout ratio. Sporting a whopping 10% dividend yield, investors may initially think that the business development company ( BDC ) Ares Capital (NASDAQ: ARCC) is a yield trap.

Capital 130

Capital Earnings Before Interest Amortization Depreciation 130

The Motley Fool

FEBRUARY 27, 2024

While many companies pay dividends, business development companies (BDCs) represent a unique and potentially lower-risk way of adding substantial passive income to your portfolio. Because BDCs are required to pay out at least 90% of their taxable income to shareholders each year.

Leveraged Buyouts 130

Leveraged Buyouts Due Diligence Initial Public Offering Exchange-Traded Funds 130

The Motley Fool

DECEMBER 15, 2023

While many different types of companies pay dividends, one of the more generous types is business development companies (BDCs). BDCs are required to pay out at least 90% of taxable income to shareholders in the form of a dividend. One of the components of a diversified portfolio is dividend investments.

Returns 130

Returns Initial Public Offering Private Equity Firms Private Equity Firms 130

The Motley Fool

FEBRUARY 1, 2024

By comparison, publicly traded companies that don't offer a payout have clawed their way to a more pedestrian annualized return of 3.95% over the same five-decade stretch. They're just the type of business we'd expect to increase in value over long periods. These results shouldn't be a surprise.

Debt 246

Debt Investing Liabilities Private Companies 246

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 Asset Management 246

The Motley Fool

JUNE 18, 2023

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. Importantly, they must return at least 90% of their income to shareholders in the form of dividends to be exempt from federal taxes.

Stakes 130

Stakes Capital Business Development Companies Asset Management 130

The Motley Fool

FEBRUARY 17, 2024

Ares Capital shares may be a conventional stock, but this isn't a conventional company. It's categorized as a business development company (BDC), which, as the name suggests, helps businesses grow. It's also worth the risk to BDC shareholders, as these stocks tend to generate above-average dividend payments.

Banks 130

Banks Capital Liabilities Business Development Companies 130

The Motley Fool

SEPTEMBER 6, 2023

The BDC business model is leveraged Back before the Great Recession, I owned a couple of business development companies (BDC). These BDCs provide loans to small- and mid-size companies, passing through much of the interest income they earn to shareholders in the form of dividends.

Leveraging 130

Leveraging Business Development Companies Capital Shareholders 130

Pension Pulse

JANUARY 31, 2024

annually to investors since inception, the company said in a letter to shareholders on Monday. Nonetheless, its loans yielded more than 12%, outearning its annualized distribution yield, according to the shareholder letter. The shareholder letter says the distributions have been consistent, despite shifting interest rates.

Banks 59

Banks Pension Funds Investing Financial Institutions 59

The Motley Fool

DECEMBER 7, 2023

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. Ares Capital Ares Capital (NASDAQ: ARCC) is a business development company , or BDC.

Banks 130

Banks Exchange-Traded Funds Capital Business Development Companies 130

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

APRIL 28, 2024

Let's break down five companies that are established dividend payers, and assess why holding each of these stocks over a long-term time horizon can lead to massive gains for your portfolio. Hercules Capital Hercules Capital (NYSE: HTGC) is a business development company (BDC).

Leveraged Buyouts 244

Leveraged Buyouts Due Diligence Buyout Venture Capital 244

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