A BDC, or Business Development Company, is a unique type of investment opportunity. They strive to combine the benefits of both publicly traded and closed-end investment vehicles. These BDCs are more likely to expose investors to private equity or venture capital-style investments. Business Development Companies (BDCs) typically pay out substantially greater dividends to investors than traditional stocks or dividend stocks. This is owing in part to the unusually high interest rates on BDC loans, as well as the fact that these companies are required to disperse at least 90% of their taxable income.
Insider Monkey takes a look at the 10 BDC dividend stocks for increased income. Gladstone Investment Corporation specializes in lower middle market and mature stage buyouts as well as debt refinancing. The company is ranked 10th. It’s up 23.50 percent in the last six months and 47.08 percent so far this year. Main Street Funding Corporation specializes in providing equity capital to enterprises in the lower middle market. The company’s TII was $67.29 million, up 29.39 percent year over year and $5.22 million higher than expected. It is up 12.67 percent in the last six months and 32.76 percent for the year. Capital Southwest Corporation is ranked 8th. The company’s TII was $18.58 million, up 22.52 percent year over year and $0.22 million higher than expected. Gladstone Capital Corporation’s TII was $13.67 million, up 16.51 percent year over year and up from $12.88 million in the previous quarter. The company has increased by 18.33% over the last six months. Fidus Investment Corporation ranks 6th on the list of high-yielding BDC dividend stocks. The company’s TII was $21.83 million, up 6.82 percent year over year and $1.63 million higher than expected. For more details, click 10 BDC Dividend Stocks For Increased Income.
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