Dividends4Life: Earn a 7% Yield From This Monthly Dividend Stock

Today’s chart highlights one company in a group of monthly dividend stocks operating in the “sweet spot” of the U.S. economy known as business development corporations (BDCs). You don’t need an MBA to understand BDCs. They lend cash to mid-sized businesses and earn regular interest payments. And, because they have to pay out most of their profits, some of these names pay yields of seven percent to upwards of nine percent.

Which company sets the tone in this industry? Main Street Capital Corporation (NYSE:MAIN). Few can match this firm’s track record. And, while many people have never heard of it, there are plenty of reasons why this name tops my list of monthly dividend stocks. First, Main Street works in the aforementioned “sweet spot” of the U.S. economy. Executives lend money to mid-sized firms with annual revenues between $10.0 million and $50.0 million. You’re talking about real companies with ample profits, not some speculative startups. Big banks generally won’t lend to these businesses. And, due to growing regulations, they’ve pulled out of the market. You have too much red tape to justify making these small loans.

Source: Income Investors

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