In the bond market, the highest yielders are usually considered junk bonds. Therefore, it shouldn’t come as a surprise that, in the stock market, investors tend to have second thoughts about putting their money in companies with ultra-high dividend yields. The thing is, though, if you decide to ignore high-yield stocks altogether, you could be missing out on some serious income opportunities.
Case in point: Garrison Capital Inc (NASDAQ:GARS) is currently one of the highest-yielding companies trading on the Nasdaq. And yet, the company actually has more than enough resources to back its payout. Garrison Capital Inc provides financing solutions to middle-market businesses in the United States. While the company makes both debt and equity investments, its main focus is on secured lending. The neat thing is, due to the changes in the regulatory environment over the years, large banks don’t usually lend to middle-market companies anymore. As a result, these companies have to pay higher costs to get financing.
Source: Income Investors
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