Buying and selling stocks involves emotions and hopes for the future, making it a complex decision-making process. That's why a buy-and-hold strategy may work better, especially when it comes to dividend stocks that pay you for holding them. Income stocks like CCAP and CNQ offer potentially strong long-term total return potential, allowing investors to capitalize on undervalued opportunities while receiving recurring income.
Crescent Capital BDC, Inc. is a well-managed business development company with a floating-rate focus and solid dividend metrics. The company pays growing supplemental dividends and has a low pay-out ratio, but may face challenges in a lower-rate environment. Crescent Capital is trading at a 4% discount to book value, but may disappoint investors due to its aggressive floating-rate posture and potential impact of rate cuts.
Crescent Capital BDC (CCAP) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
If you're considering investing in dividend stocks, you'll find that there are many reasons to do so, not least the steady passive income they deliver on top of long-term capital appreciation.
Net worth is not the only metric to measure wealth, as free cash flow generation is also important. Investing in a mix of high and mid-level dividend-paying stocks can protect net worth, while providing income. Crescent Capital and Federal Realty Trust are two picks that offer high-yield and stable growth for a well-rounded portfolio.
Does Crescent Capital BDC (CCAP) have what it takes to be a top stock pick for momentum investors? Let's find out.