There’s no other way to put it: the U.S. stock market is bloated. Over the past 12 months, all three major indices have soared past their all-time highs. Consider this: the S&P 500 Index now carries a price-to-earnings multiple of 25.84 times, significantly higher than its historical average of 15.68 times. While the latest round of rally has certainly brought many profit-taking opportunities, it also created a challenging environment for yield-seeking investors. Because a company’s dividend yield moves inversely to its share price, the surging stock market means yields are getting suppressed.
And that’s why Medley Capital Corp (NYSE:MCC) is special. The company not only offers a jaw-dropping yield of 11.32%, but also trades at a significant discount. Headquartered in New York City, Medley Capital Corp is a closed-end investment firm that specializes in lending to privately held middle-market companies in North America. Middle-market companies may not be household names, but they represent a huge income opportunity. You see, previously, banks dominated the lending space. But due to consolidation in the banking industry and tighter regulations, banks’ participation in middle-market lending has declined significantly in recent years. This allowed investment firms like Medley Capital Corp to take the main stage in the business.
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
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
If you want to earn more dividend income from the stock market, then you need to start investing in healthcare. Analysts project the number ...
-
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 ...
-
I am going to double down on Exxon Mobil (XOM) this week because I believe investors will have to deal with more market volatility going for...
-
Dividend investing is all about owning investments that pay you — and pay you well — through thick and thin markets. And whether you are bui...
-
High dividend yields are harder to find lately, given the long-running stock market rally. But that scarcity doesn't mean investors have...
-
The U.S. boosted tariffs on $200 billion worth of Chinese goods from 10% to 25%. The markets had expected this to be the week that this deal...
-
One little-known tax loophole allows Americans to collect large, growing distribution checks from the government. And investors can begin ea...
-
Utility stocks were supposed to be yesterday’s favorite investment. The theory regarding utility stocks was simple: Robust economic growth c...
-
Technology is the alchemy of the stock market. It is where companies turn worthless silicon into incredible new and expensive gizmos and dev...
0 comments
Post a Comment
Post a Comment