| Business Development Companies (BDC's) Alphabetically Sorted (Exchange Traded Debt and Preferreds of BDC's Listed Below Also) A Business Development Company (BDC) is a public corporation that invests in small to mid sized companies. They may invest in either debt or equity of the given company. For all practical purposes buying shares in a BDC is like being a venture capitalist or a private equity investor. Typically the BDC is looking to invest in a company that will grow rapidly and profitably. Obviously the idea is to grow the investment Not unlike a REIT the BDC, generally organized as a Regulated Investment Company (RIC) must pay out 90% of their taxable income each year to their investors. The BDC organized as a RIC must also own no more than 10% of any companies voting securities and may not invest more than 5% of the BDC's assets in any one security. BDC's range in size from tens of millions of dollars which they invest to many billions invested. Because of the requirement that the BDC must pay out 90% of their taxable earnings each year these companies typically pay a sizable dividend (either Monthly or Quarterly). As you can see below in the chart the yields are many times large--although like all yields--bigger is not always better. High yield normally means high risk. One must research BDC's just as they would any company to determine if the risk/reward equation is appropriate for your situation. . |
| The Yield Hunter Let's Make some money and sleep well at night In our 7th Year |
| Navigation Clicking on the security description will bring you to the BCD's website where you can continue your research. |
| Yield Shown Represents Current (most recent) Distribution Extrapolated to 4 quarters. Special dividends are NOT included. NOTE--we now include the last 2 distributions so one can see the trend (we will add another quarter in the next 3 months) |
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