Building A Retirement Portfolio With 6% To 9% Yield: Part 2

Over the coming weeks, I will have a series of articles discussing how to build a retirement portfolio using Business Development Companies ("BDCs") currently yielding over 10% and their safer baby bonds/preferred shares currently yielding over 6%. Part 1 of this series discussed Monroe Capital (MRCC), Owl Rock Capital Corporation (ORCC), and TPG Specialty Lending (TSLX) and this article discusses:
TCG BDC, Inc. (CGBD) - 12% yield with special dividends Capital Southwest (CSWC) - 9% yield with special dividends Prior to starting a position in CSWC, I purchased some of its 5.95% Baby Bonds that trade under the symbol CSWCL but I will likely be selling and will discuss in an upcoming article.

Source: Yahoo Finance
As mentioned in "Building A Retirement Portfolio With BDCs Currently Yielding 10.6%", interest rates will likely remain low and investors will continue to need equity investments (stocks) to generate an adequate portfolio yield. BDCs pay higher-than-average yields with the average BDC currently yielding over 10%. Safer BDCs are closer to 9% annual yield but patient investors can get higher yields by taking advantage of volatility. For discussion of portfolio allocations, please see the previously linked article.

What is a BDC?
Business Development Companies ("BDCs") were created by Congress in 1980 to give investors an opportunity to invest in private small and mid-sized U.S. companies typically overlooked by banks. Most BDCs are publicly... Read more