This 11.2% Yielder Trades at a Significant Discount

In today’s market, most ultra-high yielders are not the safest bets. Think about it: when the vast majority of dividend-paying stocks offer yields of less than five percent, a double-digit payout seems too good to be true. A High-Yield Stock You Likely Haven’t Considered...

Alcentra Capital Corp (NASDAQ:ABDC) is a good example of this. Most people have never heard of it, but with a quarterly dividend rate of $0.18 per share, ABDC stock offers a yield of 11.2% at the current price. Headquartered in New York City, Alcentra Capital Corp is a business development company (BDC) that provides debt and equity financing solutions to middle-market businesses in the U.S.Due to tightened banking regulations, middle-market businesses can’t always get loans from traditional banks. As a result, they are willing to pay higher costs to obtain financing. This means that for middle-market lenders like Alcentra Capital Corp, the profits could be quite substantial.

Source: Income Investors

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