Dividends4Life: A 7.9%-Yielding Quality BDC Is Up For Grabs Again

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A 7.9%-Yielding Quality BDC Is Up For Grabs Again

Posted by D4L | Saturday, February 24, 2018 | | 0 comments »

The stock market sell-off has made quality income vehicles more affordable. This BDC is oversold, shares currently change hands for ~1.6x book value. It will continue to grow its monthly dividend, and has an attractive reward-to-risk ratio after the price drop. An investment in the stock comes with a 7.9 percent entry yield.

Main Street Capital Corp. (MAIN) looks like a good deal now. The stock sell-off has made business development companies, including Main Street Capital a lot more affordable lately, leading to a more appealing reward-to-risk ratio, and a better entry yield. MAIN Street Capital was overvalued before the sell-off, and the drop in valuation is a welcome opportunity to buy into the BDC. An investment in MAIN comes with an entry yield of 7.9 percent.

Source: Seeking Alpha

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