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|
|OAKTREE SPECIALTY LENDING||4.90||0.0||-1.39||0.50||10.02|
Older articles featuring Ferrellgas Partners Lp (FGP):Dividend Increases For The High-Yield BDC Sector, Part 3: TPG Specialty Lending
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Ferrellgas, 9% Yield-To-Maturity, Maturing June 2020
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