High-Yield Alternatives to BDC Stocks

Do you want high yields, but don't want to take on the risk of investing in higher-risk business development companies? You may have a better option. Here are two BDC investment opportunities that offer an attractive middle ground with above-average yields.

BDC investors love Main Street Capital (NYSE: MAIN ) for its impressive track record. Not only did the company pay dividends throughout the financial crisis, but it also increased its dividends in every year except 2010. Few business development companies can match that claim. Like Main Street, Prospect Capital (NASDAQ: PSEC ) ranks high on the list of quality BDCs, thanks largely to its balance-sheet makeup. The company invests mostly in higher-quality senior debt of middle-market companies.

Source: Motley Fool

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