Not everyone wants higher interest rates. For homeowners, rising rates could translate to higher mortgage payments. For corporations, higher interest rates would increase their debt repayment burden. However, it’s not all going to be bad news, because there are strategies for investors to capitalize on rising interest rates. Since we are Income Investors, I’m going to show you a relatively safe one. With this play, there’s no need to use complicated financial derivatives. And you get paid a double-digit income stream just to be part of the game.
Sounds too good to be true? Well, let me explain...
In order to take profit from higher interest rates, you need to keep track of two simple variables: revenue and expenses. If you can increase your revenue when interest rates increase while keeping your expenses fixed, chances are you’ll see more profits on the bottom line. As it turns out, one company is well positioned to do exactly that: Prospect Capital Corporation (NASDAQ:PSEC). Headquartered in New York City, Prospect Capital is a business development company, or BDC. Its main business is to invest in middle-market companies in the U.S., most through debt financing. In other words, PSEC lends out money and collect interest payments.
Source: Income Investors
Related Articles:
- International Securities For A Diversified Income Portfolio
- International Securities For A Diversified Income Portfolio
- 6 Dividend Stocks That Gave Me A 20%+ Annualized Return
- 3 Simple Steps For A Successful Retirement
- 6 Rainy Day Dividend Stocks
Dividend Growth Stocks News
- Prediction: 5 Dividend Stocks That Could Crush the S&P 500 Over the Next 10 Years - MSN - 5/21/2025
- Prediction: These 3 Monster Dividend Stocks Will Continue Crushing the S&P 500 Beyond 2025 - The Globe and Mail - 5/21/2025
- 9 Cheap Dividend Stocks (All Under $11) - MSN - 5/21/2025
- 5 Top Dividend Stocks Yielding Over 5% to Buy for Passive Income - MSN - 5/21/2025
- 3 Dividend Stocks With Yields From 3.2% To 4.9% - Yahoo Finance - 5/21/2025
- Automatic Data Processing Inc. (ADP) Dividend Stock Analysis - 5/16/2025
- Air Products and Chemicals Inc. (APD) Dividend Stock Analysis - 5/9/2025
- Waste Management, Inc. (WM) Dividend Stock Analysis - 5/2/2025
- Wal-Mart Stores, Inc. (WMT) Dividend Stock Analysis - 4/25/2025
- Abbott Laboratories (ABT) Dividend Stock Analysis - 4/18/2025
Getting Paid 10.7% Per Year to Play Rising Interest Rates?
Posted by D4L | Friday, October 27, 2017 | 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.