Dividends4Life

BDCs raise much of their funding capital via initial public offering, but also use that capital to leverage against borrowings. So BDCs will borrow capital at a relatively low rate and lend it out at much higher rates. The money is usually loaned to “middle-market companies” that need growth capital. Hence, the name “business development companies.” BDCs will usually take warrants along with the money they loan, so if their borrower is successful, they can buy into the business at a favorable price and flip the investment if they so choose. BDCS With Killer Yields...

Wells Fargo Business Development Company Index (NYSEARCA:BDCS) does exactly that, investing in over 40 BDCs — pretty much all of them — and thus providing you the safety and security of knowing that if one blows up, the whole basket won’t. BDCS currently has an annualized yield of 7.6%. TCP Capital Corp (NASDAQ:TCPC) specializes in the arena that I like the best, which is offering loans between $10 million and $45 million to middle-market companies with enterprise values that range from small ($100 million) to large ($1.5 billion). Gladstone Capital Corporation (NASDAQ:GLAD) has advantages that other BDCs share, which is that they tend not to correlate with the overall market.

Source: InvestorPlace

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1 Dividend Stock to Retire On

Posted by D4L | Wednesday, May 24, 2017 | | 0 comments »

I coined the term “forever asset” to describe a group of top dividend stocks that have rewarded shareholders for decades. These wonderful businesses enjoy entrenched market positions, allowing them to crank out wide profit margins year after year. Over the past few months, I’ve covered a number of these companies. I’ve shown you how boring firms like soda, railroads, and cell phone towers can make great investments. And if you’re looking for a retirement income stream, these boring businesses make for some of the best stocks around. Today’s article highlights one of my favorite “forever assets” ...

Kellogg Company (NYSE:K) is the leading producer of ready-to-eat cereal, but also sells crackers, potato chips, and other assorted snacks. And while you won’t impress any MBAs sticking this name in your portfolio, I love the business. To start off, it’s depression-proof. No matter what the economy is doing, people need to eat. Shoppers buy food regardless of inflation, interest rates, or widening credit spreads. Next, it’s an incredibly lucrative business. Kellogg earns 40% gross margins. Over the past five years, the company has collected $0.37 in profit on every dollar of equity invested in the business. Finally, this is one of the most reliable dividend payers around. Kellogg has been mailing out checks to shareholders since 1925—back when Calvin Coolidge was President.

Source: Income Investor

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Looking for high dividend stocks with cash flow growth? This stock yields 7.7%, with 1.19x distribution coverage, and is selling below book value. Distributable cash flow grew over 18% in 2016. It reports earnings this week and should go ex-dividend either this week or next week.

Enable Midstream Partners LP (NYSE:ENBL) may be right up your alley. Enable Midstream Partners is a publicly traded master limited partnership. The partnership owns, operates, and develops strategically located natural gas and crude oil infrastructure assets. It has two operating segments: Gathering and Processing (58%) and Transportation and Storage (42%). ENBL grew DCF by 18.77% and EBITDA by 9% in 2016, and turned around its net income, swinging from a -$752M loss to a $290M gain. Its total distributions grew by over 5.65%, and its total distribution coverage grew by 12.42%.

Source: Seeking Alpha

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It is not hard to figure out why so many investors love dividend stocks. Dividend payments allow shareholders to generate an income stream from their stocks without having to sell. That money can be used as spending money or capital that can be reinvested elsewhere. Of course, just because a company pays a dividend doesn't make it an automatic buy.

In fact, I think investors need to be picky about which dividend stocks they own. So, which dividend stocks do I think are buys right now? Here's why I believe Iron Mountain (NYSE:IRM), Outfront Media (NYSE:OUT), and LTC Properties (NYSE:LTC) are all top choices.

Source: Motley Fool

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If investors believe a company is going to cut its dividend soon and a sell-off starts, they could make the company’s yield rise. Would that company be a good choice for income investors? Not really. That’s why we are going to focus on dividend growth rather than dividend yield. Whether it’s increasing interest rates or rising inflation, if a company can keep growing its business and dividends accordingly, income investors don’t have to worry about the macro environment all that much. With that in mind, let’s take a look at the top five dividend stocks to watch in May 2017.

Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) could be setting up to deliver some delicious returns. Cracker Barrel Old Country Store operates a chain of combined restaurant and gift shops with a Southern country theme. Clorox Co (NYSE:CLX) has been an income investor for quite some time. Starting with its original liquid bleach product “Clorox” in 1913, the company has been around for over a century. General Mills, Inc. (NYSE:GIS) is a branded food company headquartered in Golden Valley, Minnesota. With an annual yield of 1.45%, Northrop Grumman Corporation (NYSE:NOC) might not look like something you’ll find in a top dividend stocks list. Medical Properties Trust, Inc. (NYSE:MPW) is a REIT worth considering for income investors.

Source: IncomeInvestor

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