My portfolio focuses on high-yielding stocks, as they are ideal components of an opportunistic capital recycling strategy. That said, not all high-yield stocks make for good investments. I share one stock with a dividend yield of over 13% that I would avoid right now.
I am bullish on BDCs and BIZD for 2025 due to a lower-rate environment, potential deregulation, and lower corporate taxes, which will drive growth. BIZD offers a diversified, high-yield income investment in BDCs, eliminating single stock risk and providing over 10% yield despite its 13.33% expense ratio. Investing in BIZD mitigates the complexities of researching individual BDCs, offering a consistent high dividend and exposure to top-performing BDCs like ARCC, FSK, and OBDC.
Hedge fund veteran and Wall Street-approved suit Scott Bessent is likely the new Treasury secretary. That's why this 11% dividend is a big winner.
The BDC universe is small, with less than 50 players, and only 4 have market cap levels exceeding $5 billion. Hence, retail and income-oriented investors can exploit high yields and market inefficiencies due to less competition from institutional "smart money". If, however, there is a willingness to enter the BDC universe via ETFs, there are only two meaningful options - BIZD and PBDC.
I love stocks that pay big dividends and buy back a lot of stock. I share some dividend stocks that meet these criteria. I detail why they are compelling buys right now.
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.
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.
Are you a yield hound? It's becoming more challenging to find quality investments with high yields.
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.
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.
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.
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.