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Building A Retirement Portfolio With 6% To 9% Yield: Part 1

Published Wed, 09 Oct 2019 16:35:40 -0400 on Seeking Alpha

Over the coming weeks, I will have a series of articles discussing how to build a retirement portfolio using Business Development Companies ("BDCs") currently yielding over 10% and their safer baby bonds/preferred shares currently yielding over 6%.
Specifically, this article discusses:
Monroe Capital (MRCC) - 14% yield Owl Rock Capital Corporation (ORCC) - 9% yield with specials TPG Specialty Lending (TSLX) - 9% yield with specials As mentioned in "Building A Retirement Portfolio With BDCs Currently Yielding 10.6%", interest rates will likely remain low and investors will continue to need equity investments (stocks) to generate an adequate portfolio yield. BDCs pay higher-than-average yields with the average BDC currently yielding over 10%. Safer BDCs are closer to 9% annual yield but patient investors can get higher yields by taking advantage of volatility. For discussion of portfolio allocations, please see the previously linked article.

What is a BDC?
Business Development Companies ("BDCs") were created by Congress in 1980 to give investors an opportunity to invest in private small and mid-sized U.S. companies typically overlooked by banks. Most BDCs are publicly traded with a highly transparent structure subject to oversight by the SEC, states and other regulators, providing investors with higher than average dividend yields (most between 7% and 14% annually, see details below) by avoiding taxation at the corporate level. This allows them to pass along... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
FERRELLGAS PARTNERS LP 0.99   0.0 -2.13 0.00 40.41
BLACKROCK KELSO CAPITAL 5.25   0.0 -0.12 0.56 13.61
MONROE CAPITAL 10.48   18.4 0.57 1.40 13.60
GARRISON CAPITAL 6.94   0.0 -0.17 0.92 13.35
CAPITALA FINANCE 8.19   0.0 -3.13 1.00 12.46
THL CREDIT 6.96   0.0 -0.86 0.84 12.09
OAKTREE SPECIALTY LENDING 4.90   0.0 -1.39 0.50 10.02
MEDLEY CAPITAL 2.61   0.0 -1.62 0.15 5.81


Older articles featuring Ferrellgas Partners Lp (FGP):
Ferrellgas Default Could Drive Special Dividend For TPG Specialty Lending
Dividend Increases For The High-Yield BDC Sector, Part 3: TPG Specialty Lending
80 Top 10%+ Yield WallStars For October 2019 From Dividend Dogcatcher
50 Energy Sector Top Target Gain Dividend WallStars For July
Another Big Win Driving Special Dividends And 9% To 10% Yield
Ferrellgas, 9% Yield-To-Maturity, Maturing June 2020
Stocks Trading Ex-Dividend on 12/6/2016
High-Yield And High Return? Not Necessarily
MLPs: Yield Retreat No Holiday For MLPs
Stocks Trading Ex-Dividend on 9/2/2016