Best In Breed BDC, 9.5% Yield, High Insider Ownership, 30% Return Potential, No K1s

Co-produced with PendragonY for High Dividend Opportunities
Note: All images sourced from the Company's website unless otherwise stated.
Newtek Business Services (NEWT) is an internally managed BDC which recently traded at $19.43. It's projecting to pay an annual dividend of $1.841 in 2019 (paid on a quarterly basis) for an annualized yield of 9.5%.
NEWT has a long track record. The company was established in 1998 and has been listed (publicly trading) since September 2000. NEWT decided to convert to a BDC status in 2015, and started paying most of its profits in high dividends. The company has more than 15 years of lending history through multiple lending cycles. This is a fast-growing BDC company with a conservative management team and high insider ownership. Management has skin in the game. The stock has been a strong outperformer over the past five years, and is set to continue to do so.
The Opportunity NEWT has a unique and differentiated business model, and a structure that creates very promising opportunities for growth and profitability.
The stock has recently sold off hard in the past three months, losing ~15% of its share price. NEWT just reported stellar earnings, and we see no reason for this selloff other than that this is a smaller-cap stock that tends to fall harder than their larger cap counterparts during market pullbacks.

The bull story remains the same for NEWT, which is in our opinion the BEST BDC company around. The pullback... Read more