Little-Known Investment Company Pays a Yield of 10.3%

Just think about that. The average S&P 500 company pays less than two percent at the moment, and a four percent payout would allow a company to call itself a “high-yield stock.” In this kind of environment, a yield north of 10% could go a long way towards boosting the return of an income portfolio.

Most people have never heard of Fidus Investment Corp (NASDAQ:FDUS), but the company deserves income investors’ attention for a very simple reason: it offers a double-digit dividend yield. Headquartered in Evanston, Illinois, Fidus is a business development company (BDC). It provides customized debt and equity financing solutions to lower-middle-market companies in the U.S. The company’s BDC status means as long as it distributes at least 90% of profits to shareholders every year in the form of dividends, it doesn’t have to pay any income tax at the corporate level.

Source: Income Investors

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