Dividends4Life: This 11.3% Yielder Trades at a Significant Discount

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

Click here to have future posts delivered to you for free!

________________________________________________________________

0 comments

Post a Comment

Note: Only a member of this blog may post a comment.

~

Popular Posts Last 30 Days