Why Dividend Stock Investors Should Consider BDCs

Business Development Companies (BDCs) offer some attractive opportunities for dividend stock investors. BDCs are now paying dividends in the 7-11% range - a level which is harder and harder to find in the market. BDCs have some unique characteristics and investors often misunderstand the sector. BDCs typically lend to companies in the small to mid cap range and sometimes take an equity "kicker." Banks have reduced lending in this sector and so BDCs have some favorable opportunities to make loans on advantageous terms.... Read more