Blue Owl Capital Corp

Main Street Capital

Morgan Stanley Direct Lending Fund

Capital Southwest

Trinity Capital

Bain Capital Specialty Finance Inc

VanEck Vectors BDC Income ETF

BIZD tracks a market cap-weighted index of US BDC companies whose principal business is to invest in, lend capital to, or provide services to privately held companies.

Ares Capital

Barings BDC Inc

Blackstone Secured Lending Fund

Fidus Investment

FS KKR Capital Corp

Gladstone Investment

Goldman Sachs BDC

TCP Capital

Triplepoint Venture Growth BDC

Sixth Street Specialty Lending

When investing for 10%+ BDC yields, investors have to pay extra attention to leverage, dividend coverage, and portfolio quality. Going into Q3, 2024 earnings season, my expectation was that we would see elevated volatility levels and falling NII results. While the actual results have been mostly positive for high-quality BDCs (and even for some speculative picks), many risks remain open.

Investing In BDCs For 10%+ Yields? This Is What Matters Now

CION Investment Corp

Oaktree Specialty Lending

Sky-high dividends of 13-14% are appealing but often come with significant risks. I discuss two stocks that have fully covered 13% and 14% yields that have a lot going for them and look deeply undervalued. However, I believe their dividends are at risk of getting cut soon.

Dividend Cut Alert: 13-14% Yields Getting Too Risky

Brookfield Renewable Partners

Golub Capital BDC

Realty Income Corp

Schwab US Dividend Equity ETF

Vanguard Real Estate ETF

The broader markets are soaring right now. However, there are numerous opportunities to buy discounted blue-chip high-yielding dividend growth stocks. I share three best-of-breed high-yield dividend growth stocks that have recently sold off and trade at compelling valuations right now.

Buy The Dip: 6-11% Yields For Growing Retirement Dividend Income

Armada Hoffler Properties

Alerian MLP ETF

MPLX

Morgan Stanley

Chasing yields above 10% is risky. 8-10% yields offer a sweet spot when combined with stable cash flows and strong balance sheets. I share three of these stocks that I really like right now.

8-10% Dividend Yields: If I Could Only Buy 3 In November 2024

Enterprise Products Partners

PIMCO Dynamic Income Fund

High-yield dividend stocks can powerfully boost passive income. However, they come with significant risks, especially when yields exceed 10%, indicating potential payout cuts or limited growth. I discuss one underappreciated 14%-yielder that is an attractive buy and another popular one that is a sell in the current environment.

14% Dividend Yields: 1 To Buy And 1 To Sell

SPDR Bloomberg High Yield Bond ETF

Global X NASDAQ 100 Covered Call ETF

Are you a yield hound?  It's becoming more challenging to find quality investments with high yields.

Yield Hounds Will Love These 3 ETFs

LyondellBasell Industries

Big dividend stocks are some of my favorite stocks to buy. However, just because a stock pays a big dividend does not mean it is undervalued. I discuss two popular big dividend stocks that, I think, are very overrated right now.

2 Very Overrated And 2 Very Underrated Big Dividend Stocks

Delek US Hlds

Delek Logistics Partners

NextEra Energy

High-yield dividend growth stocks can make for exceptional passive income machines and wealth-compounding instruments. However, exceptionally high yields demand extra caution from investors. We discuss two 11%+ yields that, we think, are worth buying and one that we rate as a sell.

11-14% Yielding Dividend Growers: 2 To Buy And 1 To Sell

Hercules Capital

Putnam BDC Income ETF

PennantPark Floating Rate Capital

The All Weather Portfolio concept introduced by Ray Dalio aims for stable returns through largely uncorrelated investment exposures. In this article, I have tried to apply the essence of such a construct for BDC dividend-seeking investments. The sample portfolio, which is presented in the article, consists of three structural layers that are not that correlated and offer different risk and reward profiles.

Invest In All Weather BDC Dividend Portfolio

BIZD is a simple BDC index ETF. Dividends are strong, with an 11.4% dividend yield and high single-digit dividend growth these past three years. Share price and valuations are somewhat low, especially compared to the S&P 500.

BIZD: Recent Developments Are Encouraging

VanEck BDC Income ETF (BIZD) offers diverse BDC exposure with an 11.3% dividend yield. The ETF's top holding, Ares Capital, shows strong financials and distribution coverage, justifying its increased weight and defensive portfolio shift. Despite BIZD's lower total return compared to individual BDCs, its diversity reduces volatility and maintains high distribution rates, making it ideal for income investors.

BIZD: Portfolio Weight Shifts To The Defensive

Income investors should consider Crescent Capital BDC and Fidus Investment for their portfolios, as both trade below Net Asset Values and offer growth potential. CCAP, despite a short track record, shows strong investment activity, solid balance sheet, and consistent dividend payouts, making it a defensively positioned growth opportunity. FDUS has a longer track record, impressive dividend growth, and a solid balance sheet with a lower leverage ratio, offering stability and income reliability.

2 Small Cap, Growing BDCs That Could Be Great Income Additions To Your Portfolio

Solar Capital

Typically, stocks with at-risk dividends should be avoided. That said, there are exceptions to every rule. I share two high-yielding stocks that look like attractive buys to me even though their dividends could very possibly be cut in the near future.

Dividend Cut Alert For 2 Deeply Undervalued 11%+ Yields

I have been bearish on BDCs for a while, and this caution has paid off. However, some good news just arrived for the sector. I discuss what this is and share some of my top picks of the moment in light of this good news.

Good News For BDCs

Brookfield Asset Management

Brookfield Infrastructure Partners L.P.

Brookfield Infrastructure

Brookfield Corp

W. P. Carey

Utilities Select Sector SPDR Fund

High-yield stocks have surged in recent months. However, recently, news hit that threatens to end the rally in much of the sector. We share which part of the high-yield space is likely going to benefit from this bad news, as well as how we are positioning our portfolio overall.

Bad News For High Yield Stocks

Dividend stocks have been soaring in recent months. However, there is reason to believe that the party may not last much longer. We share our concerns and how we are positioning our portfolio as a result.

An Important Warning Before Buying Dividend Stocks

Blackstone Group

Energy Select Sector SPDR Fund

The high-yield space has undergone a sharp bifurcation recently. We discuss what this bifurcation is and what is driving it. We discuss two quality and growing 10%-yields that are way too cheap right now.

Buy The Dip: 10% Yields Getting Way Too Cheap

Investcorp Credit Management BDC Inc

The fears of BDC dividends becoming unsustainable are rising. The primary driver for this is falling interest rates. While I fully appreciate this risk, in my opinion, by being very selective, investors can keep their attractive BDC dividends safe.

2 Lessons From BDCs That Recently Cut Their Dividends

The Federal Reserve's recent rate cut will have a complex impact on business development companies. Many BDCs will face headwinds due to falling net investment income as SOFR begins to fall. MAIN and GAIN's focus on equity investments differentiates them from typical BDCs.

2 Business Development Companies To Buy Before Mergers And Acquisitions Heat Up

Prospect Capital

The Federal Reserve's 50 basis point rate cut impacts BDCs, which are sensitive to short-term rate changes, affecting their net investment income. BDCs thrive during rate hikes but face challenges with rate cuts, potentially leading to declining net investment income and increased non-accruals. I take a look at 10 leading BDCs and share my pick for the best one to own in the current environment.

The Best BDC To Buy For Fed Rate Cuts

Energy Transfer LP Unit

JPMorgan Nasdaq Equity Premium Income ETF

InfraCap REIT Preferred ETF

Cohen & Steers Infrastructure Fund Inc

Investing in high-yield dividend stocks can provide a stable passive income in retirement, reducing sequence-of-return risk compared to index funds. We share a model portfolio for how you can do this. The model portfolio yields a weighted average 8% while also growing its payouts at a rate that should meet or even beat inflation over the long term.

8%-Yielding Portfolio For Retirement Passive Income

Enbridge

SPDR Gold Trust

JPMorgan Chase & Co

Mid-America Apartment Communities

iShares 0-3 Month Treasury Bond ETF

SPDR Portfolio S&P 500 High Dividend ETF

AT&T

The Federal Reserve's 50-basis-point rate cut seems like a big tailwind for dividend stocks. However, the rate cut also brings several warnings to the dividend stock space. We discuss what these are and how we are positioning our portfolio to navigate rate cuts.

An Important Warning For Dividend Investors After The Fed's Big Rate Cut

Compass Diversified Holdings

High-yield stocks have rebounded due to optimism over Federal Reserve rate cuts. However, there remain several high-quality high-yield stocks that have lagged the sector's recovery and remain attractive bargains. We discuss some of them in this article.

Buy The Dip: High-Yield Stocks Getting Way Too Cheap

Algonquin Power & Utilities

JPMorgan Equity Premium Income ETF

Medical Properties Trust

Microsoft

NVIDIA

Palantir Technologies

Invesco QQQ

Cohen & Steers Quality Income Realty Fund

Picking individual stocks can outperform the market if you enjoy analyzing companies and have the discipline to manage your investments carefully. There are important lessons that investors need to follow if they are going to have success picking stocks. I share three of some of the most important lessons I have learned over the years that I wish I had known at the beginning of my stock-picking career.

What I Wish I Knew Before Becoming A Stock Picker

Business Development Companies offer solid income opportunities by investing in small and medium-sized businesses, providing debt, equity, and management support. The VanEck BDC Income ETF targets high yields by investing in BDCs, giving investors access to private credit markets through public equities. BIZD's focus on financials means it's sensitive to economic changes and interest rate shifts, but it boasts a 30-Day SEC Yield of 10.76%.

News for VanEck Vectors BDC Income ETF ETF (BIZD)