Buy Alert: 3 Undervalued 10% Yields For August 2024
While long-term interest rates are falling in anticipation of Fed rate cuts, there are still some very attractive high-yield opportunities in the market. We discuss 3 that yield 10%+ right now. We compare them and share our take on which is the most attractive right now.
1 ETF I Wouldn't Touch With a 10-Foot Pole
The VanEck BDC Income ETF offers a high dividend yield of 10.4%, but its expense ratio is an astonishing 11.2%. High fees can drastically reduce long-term returns.
BIZD: Diversified BDC ETF With A Solid 11% Yield
VanEck BDC Income ETF offers exposure to high-yielding business development companies with a dividend yield of 10.7%. BIZD provides diversification and avoids company-specific risks for passive income investors. Ares Capital is the largest holding in the ETF, contributing to its quality tilt and stable dividend.
BIZD: A Great Way To Add Exposure To High Yielding BDCs
Since December last year, when I issued a relatively bullish article on BIZD, the ETF has delivered ~ 14% in total returns. While the index level has ticked higher, BIZD still continues to offer a ~10% dividend yield. During this period, BIZD has also become a more enticing risk-reward play.
These 3 Dividend ETFs Are a Retiree's Best Friend
Dividend growth is important, but it's not the only thing to consider when shopping around for income investments. Don't become so future-minded that you're unable to pay for the present.
BIZD: The Least Risky Way To Maintain BDC Exposure
VanEck's BDC Income ETF is a great way to maintain a diverse exposure to the Business Development Company sector. BIZD's currently dividend yield sits at 10.5% and is comprised of both net investment income and net realized gains from its holdings. While interest rate cuts may lead to reduced distributions because of lowered NII per share, the increased volume of borrowers may offset this and boost performance.
Rate Hikes, Rate Cuts? Win Big With These 10% Yields
BDCs play a highly important role in the U.S. economy by providing liquidity to the middle market. You can reap high current income now and when rates fall. I don't trade on the market's whims, I collect income through it.
BIZD: BDCs Are A Sector Buy In A "Higher For Longer" Scenario
Business development companies have benefitted from rising interest rates over the past two years. As sustained inflation prevents the Federal Reserve from lowering borrowing costs, BDCs stand to continue benefitting from an elevated interest rate environment. BIZD is an exchange traded fund that invests in BDCs.
3 Strong Income ETFs, With +8.0% Yields
BIZD, CEFS, and CLOZ are three income ETFs offering investors strong, above-average yields, in the 8.4%-10.5% range. BIZD has the highest yield but is quite risky. CLOZ has the lowest yield, with low realized volatility, but some liquidity risks. CEFS is somewhere in between. All are strong, albeit somewhat risky, choices.
BIZD: BDCs' Q1 Results Point To Resilience And Bolstering Outlook
Investing in BDCs can improve long-term returns, outperforming the broader market index in both bullish and bearish conditions. Fitch's outlook for BDCs is deteriorating due to increased competition and potential decline in asset quality, but BDCs are likely to exceed expectations. BDCs are well-positioned to capitalize on the growth potential of the private credit market, with strong liquidity and impressive portfolio performance metrics.
