Business Development Corporations Yielding Over 8%

A private equity firm is a company that invests in the equity and/or debt of private companies. Many of these firms are limited to accredited investors. But according to a list at WallStreetNewsNetwork.com, there are over 20 that are publicly traded on the NYSE or Nasdaq, with yields ranging from 3.5% to 12.6%. Some of these companies are registered as Business Development Corporations. A Business Development Corporation, also known as a Business Development Company or BDC, is a publicly traded private equity fund. Many private equity companies are registered as BDCs for tax advantages, generally paying no corporate income tax because at least 90 percent of their income, profits, and capital gains are paid out as taxable dividends to investors. PennantPark Investment (PNNT) is a business development company that yields 9%, and has been paying quarterly dividends since June of 2007. The company invests between $10 million and $50 million... Read more