If a company pays, say, 14%, you would only need to put up $71,429 to earn $10,000 in annual dividends. Of course, we know that double-digit yielders are not exactly the safest bets. As a conservative income investor, I’d rather have a diversified S&P 500 portfolio than put all my money in an ultra-high-yielding stock. Still, because of their generosity, ultra-high-dividend stocks could serve as yield-boosters in a well-diversified portfolio.
And that’s why I’m looking at CM Finance Inc (NASDAQ:CMFN) today. CM Finance is a business development company (BDC) headquartered in New York City. Like most BDCs, the company provides financing solutions to middle-market businesses. While CM Finance makes both debt and equity investments, its primary focus has been senior secured lending. As of September 30, 2018, 61.5% of the company’s portfolio consisted of first-lien loans, while another 34.7% of the portfolio consisted of second-lien loans.
Source: Income Investors
Related Articles:
- 6 High-Yield REITs With Growing Dividends
- 26 Income Securities For A Well-Rounded Asset Allocation
- 5 Small/Mid-Cap Dividend Growth Stocks Answering The Call
- 8 Dividend Stocks With The Right Stuff
- Free Cash Flow Payout vs. Dividend Payout
Can You Count on This 14% Yield?
Posted by D4L | Saturday, February 16, 2019 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
When shares trade at a 40% discount to book value, they should have substantial flaws. This REIT isn’t perfect, but it deserves a higher rat...
-
The best dividend stock nobody is talking about is an undervalued, high-dividend chemical company poised to grow at an exponential rate. Wit...
-
If any investor has stood the test of time, it is Warren Buffett. For years, the “Oracle of Omaha” has had a rock-star-like presence in the ...
-
Last week, we found out that the consumer price index (CPI) went up by 8.3% in April, more than the 8.1% estimate. Meanwhile, the ongoing wa...
-
Investors typically see renewable energy companies as fast-growing but risky businesses. But not all renewable energy stocks are risky. Let&...
-
A full-blown recession, or the late-year rally in Wilson’s view – the natural move for investors will be toward defensive stocks, moves to p...
-
The Dividend Kings, which are those stocks with at least 50 years of dividend growth, is an excellent place to find high quality names. Ther...
-
When a retailer has a sale, it's often celebrated with banners, signs, and commercials telling customers not to miss out on the spectacu...
-
If any investor has stood the test of time, it is Warren Buffett, and with good reason. For years, the “Oracle of Omaha” has had a rock-star...
-
Mid-cap dividend stocks are the best bargain on the board right now. I love them because lame income investors don’t consider them. They fix...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.