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!
Dividend Growth Stocks News
- The Smartest Dividend Stocks to Buy With $350 Right Now - Yahoo Finance - 7/26/2025
- The Smartest Real Estate Dividend Stocks to Buy With $2,000 Right Now - The Motley Fool - 7/26/2025
- Top 5 Dividend Stocks Outperform Market Turmoil With Gains Up to 81.8% in 2025 - 24/7 Wall St. - 7/26/2025
- The 3 Buffett-Backed Dividend Stocks That Beat The Market In 2025 - Barchart.com - 7/25/2025
- The 3 Most Defensible Dividend Stocks for $350 in Uncertain Times - AInvest - 7/26/2025
- Duke Energy (DUK) Dividend Stock Analysis - 7/25/2025
- Chevron Corporation (CVX) Dividend Stock Analysis - 7/18/2025
- Emerson Electric Co. (EMR) Dividend Stock Analysis - 7/11/2025
- Amgen, Inc. (AMGN) Dividend Stock Analysis - 6/27/2025
- W.W. Grainger, Inc. (GWW) Dividend Stock Analysis - 6/20/2025
The Government's Gift to These Big Dividend Stocks
Posted by D4L | Saturday, August 02, 2014 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.