Dividend Stock Yields Nearly 10%, Pays Monthly, Has Insider Buying, Profits From Rate Hike

The Fed finally bit the bullet and raised its Fed Funds rate to .50%, the first rate hike in almost a decade. The market's fear over interest rates rising has served to dampen its enthusiasm for many interest-rate sensitive dividend stocks, such as REITs in particular. However, there are some high-dividend stocks which will actually benefit from higher rates, and Gladstone Investment Corp. (NASDAQ:GAIN) is one of them. The market seems to agree with the thesis also, having sent GAIN up 8.71% year-to-date.

GAIN is a Business Development Company - a BDC. BDCs typically invest in smaller non-publicly traded companies mainly by making loans to them. GAIN's business model is different - it not only makes loans to these companies, it often takes an equity position as well. This company is particularly interesting for income investors as it has many dependable high-yield plays, including the monthly distributions on its common stock, which it usually declares the in the first month of each quarter. The dates listed below are based from the January 2015 distribution and payout dates.

Source: Seeking Alpha

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