Believe it or not, the U.S. government is one of the biggest backers of high-yield BDCs, which frequently pay investors 10% or more per year in dividends. Through the Small Business Administration, BDCs large and small are borrowing cheap capital. Golub Capital BDC (NASDAQ: GBDC) and Fifth Street Finance (NASDAQ: FSC) have two licenses from which they can borrow money at rates mere basis points higher than the U.S. Government.
Likewise, smaller players including Main Street Capital (NYSE: MAIN) and Triangle Capital (NYSE: TCAP) are virtually reliant on the U.S. government to fund their balance sheet. And while it may seem to be a boon for shareholders at the cost of government, this program has been an absolute success. See why these high-yield BDCs love borrowing from the government at rates you simply will not believe.
Source: Motley Fool
Related Articles:
- The Best Dividend Stocks In The World
- 12 Dividend Stocks With 50+ Years of Consecutive Increases
- 8 Dividend Stocks With A 15% Yield In 15 Years
- First Quarter 2014: Top And Bottom Performing Dividend Stocks
- Don't Touch These 5 Dividend Stocks!
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
Add it all up, and things are starting to get tense. That leaves investors wondering where they can go for safety. After years of tech outpe...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
Dividend-paying stocks are like the ballast that keeps a ship from capsizing during stormy seas. They provide grounding for investors who, w...
-
Are you on the hunt for a generous and reliable dividend stock? If so, the list of Dividend Aristocrats -- comprised of those few companies ...
-
Individual investors were jolted by the sudden reappearance of market volatility in October. Given a range of issues spanning natural gas av...
-
If you’ve paid any attention to the financial news lately, you’d know that market sentiment has changed. This shouldn’t come as a surprise; ...
-
Despite a strong year, the renewable power company has lost 20% of its value, which has pushed its dividend yield up to 7%. That lower price...
-
Overall, the widely followed Berkshire Hathaway investment portfolio shows Warren Buffett knows the value of a consistent and growing divide...
0 comments
Post a Comment
Post a Comment