Building A Retirement Portfolio With 6% To 9% Yield: Part 4

In October, I presented 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 around 6%. Part 1 discussed Monroe Capital (MRCC), Owl Rock Capital Corporation (ORCC), and TPG Specialty Lending (TSLX). Part 2 discussed TCG BDC (CGBD) and Capital Southwest (CSWC). Part 3 compared two of the most popular BDCs: Main Street Capital (MAIN) and Ares Capital (ARCC) and this article discusses:
New Mountain Finance (NMFC) - 10% yield TriplePoint Venture Growth (TPVG) - 9% yield not including special dividends 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 traded with a highly transparent structure subject to oversight by the SEC, states... Read more