In my research for paid subscribers, I have looked at BDCs that have an average yield on their loan portfolios of 12% and up. Pretty impressive when you consider that Treasury bonds pay out only three percent. For investors, this model has created quite the income stream. In order to qualify for a number of tax loopholes, the IRS requires BDCs pass on almost all of their profits to shareholders. As a result, it’s not uncommon to find high-quality businesses paying out yields of 7%, 12%, or even as high as 15%.
Main Street Capital Corporation (NYSE:MAIN) 6.1% yield, Gladstone Investment Corporation (NASDAQ:GAIN) 7.3% yield, Apollo Investment Corp. (NASDAQ:AINV) 11.1% yield, Horizon Technology Finance Corp (NASDAQ:HRZN) 11.6% yield, Medley Capital Corp (NYSE:MCC) 15.0% yield.
Source: Income Investors
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Where to Lock In Yields of Up to 15.1% Right Now
Posted by D4L | Wednesday, May 16, 2018 | ArticleLinks | 0 comments »________________________________________________________________
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