Business Development Companies (BDC's) for Yield (dividend, investor, income, markets)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am long PSEC, I got in at a good price and like their 12% yield, paid monthly too. I am also long ACAS, which pays no dividend but trades at a significant discount to NAV, and is buying back their own shares like mad. They have stated that they will resume paying dividends when share price reaches NAV. When the dividend is restored the BDC income oriented investors should pile back in, driving up share price. That's the theory anyway.
BDCL, basket of BDCs so it is diversified, plus leveraged dividends for extra juice. I would buy it in May after what I believe will be a mini-correction in the markets starting this month.
I am long PSEC, I got in at a good price and like their 12% yield, paid monthly too. I am also long ACAS, which pays no dividend but trades at a significant discount to NAV, and is buying back their own shares like mad. They have stated that they will resume paying dividends when share price reaches NAV. When the dividend is restored the BDC income oriented investors should pile back in, driving up share price. That's the theory anyway.
Those monthly payers are absolute gold. There are plenty of them out there - some safer than others, and some, like PSEC, with a long track record.
BDCL, basket of BDCs so it is diversified, plus leveraged dividends for extra juice. I would buy it in May after what I believe will be a mini-correction in the markets starting this month.
What percentage of a diversified retirement portfolio should be dedicated to BCD's?
What percentage of a diversified retirement portfolio should be dedicated to BCD's?
Put no more than 5-8% in a BDC. A diversified portfolio is by definition, diversified. So put some in a number of different types of equities. Might also consider mREITs. High dividends also. ARR pays monthly. AGNC pays quarterly. Both and others doing 12%+. If doing both BDUs and mREITS, put no more than 10-14% of portfolio spread across both types of equities.
Dave
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
