In the realm of high dividend investing, discerning investors constantly seek opportunities that blend yield attractiveness with dividend safety. A notable small-cap Business Development Company (BDC) has recently emerged as a compelling addition to a prestigious model portfolio renowned for its focus on high dividend stocks. This BDC stands out with a forward dividend yield of 9.76%, positioning it in the upper echelon of dividend payers. However, it’s crucial to approach high yield investments with caution to avoid potential traps. Compared to the BDC industry average yield of 10.8%, this company demonstrates a robust dividend profile.
Further bolstering investor confidence, this entity boasts a seven-year track record of dividend increases, a testament to its reliability and potential for future growth. With a 9% three-year dividend per share compound annual growth rate, it underscores its commitment to rewarding shareholders generously.
Investors should note the upcoming special qualified dividend payout of $0.060 per share, going ex-dividend on March 14.
This timely information serves as a precursor to an in-depth analysis, offering insights into yield attractiveness, dividend safety, and the nuanced balance between returns potential and risk. While arriving at our recommendation, we’ve also factored in the growth drivers and financial results discussed by the company management during their Q3 2023 earnings call held on February 1, 2024.
Engage with our comprehensive stock analysis to explore how this BDC aligns with your high dividend investment strategy.
