Let’s face it, the mainstream financial media are obsessed with growth – they want to dazzle you with stories of overnight millionaires and companies promising to change the world. But what about cold, hard cash flow? What about investments that pump real money into your account every single quarter, no matter what the Nasdaq is doing?
That’s where BDCs come in.
Think of them as the financial world’s unsung heroes – they lend money to small and mid-sized businesses, the backbone of the American economy, that can’t get financing from Wall Street’s big banks. And as an investor, you get to ride shotgun on their success.
Forget chasing the next “hot” tech stock. Instead, let’s dive into these three high-yield BDC funds delivering a steady stream of cash – yields of 9% or more – that the big boys don’t want you to know about…
1. VanEck BDC Income (BIZD) – Ride the BDC Wave
This exchange-traded fund tracks the MVIS US Business Development Companies Index, giving you a broad basket of BDCs in one easy investment with a 10.3% yield. Just imagine: a $10,000 investment in BIZD could potentially generate over $1,000 in income per year – not bad for a “boring” income investment, huh?
Why is Wall Street keeping quiet about this? Because they don’t make big commissions on index funds like BIZD. They want you chasing complex, expensive investments so THEY get rich, not YOU.
2. Putnam BDC Income (PBDC) – Tap Into an Industry Veteran
Looking for a more hands-on approach? PBDC is actively managed by Michael Petro of Putnam Investments, who has an impressive 15-year history of investing in BDCs. “This is an aggressive component of someone’s income-oriented portfolio”, says Alex Seleznev of Capital Squared Financial.
Petro digs deep, identifying BDCs with strong management teams and solid loan portfolios, so you don’t have to. And as of right now, this expertise is delivering a healthy 9.2% yield for PBDC investors.
3. Ares Capital Corporation (ARCC) – The BDC Heavyweight
Remember that saying, “Go big or go home”? That applies to BDCs too.
Ares Capital is the 800-pound gorilla in the BDC world. As the largest BDC by market cap, they have the scale, the resources, and the reputation to access capital markets on favorable terms – something smaller BDCs can only dream of.
“[Size matters in BDCs],” notes Seleznev, highlighting the importance of a BDC’s access to capital.
Ares also has a stellar track record: a steadily increasing book value, demonstrating the quality of their loan portfolio year after year, and a dividend that they HAVEN’T CUT in 20 years! – that’s consistency.
As of this writing, ARCC is paying a 9.2% yield. But remember a key warning from the experts – “[The role in high yield is to achieve higher long-term returns than the rest of your income portfolio],” says VanEck’s Rodilosso. So don’t go all-in on high-yield bonds, but they should play an important role in your income strategy.
Time to Take Action!
While the folks on Wall Street are chasing the next big tech unicorn, smart investors like YOU can be generating strong, reliable income with these three BDC powerhouses. Remember, it’s about building wealth AND receiving a STEADY stream of cash – and that’s what BDCs are ALL about.
Don’t wait for permission from the financial establishment – take action now, and start collecting those juicy yields!
Coming up tomorrow – We’ll unveil three “recession-proof” Dividend Kings you should be buying BEFORE the Fed starts cutting rates –– this is an opportunity you DON’T WANT TO MISS.
