The current banking crisis has certainly thrown investors for a loop on a number of fronts. However, there may be some winners, including our Best High Dividend Stocks Model Portfolio pick. Ultimately, it has the size, scope, and right private equity (PE) partner to not only get through the economic malaise but also thrive!
You can check out the Best High Dividend Stocks Model Portfolio to explore all the stocks.
Our pick is a business development company (BDC) and lends money to private middle-market businesses. The Great Recession set the stage for the current BDC revival, and the current economic crisis could push the sector into overdrive. As a possible clampdown on lending, niche players like our pick have the ability to move in and profit.
But our BDC isn’t just any run-of-the-mill lender – it just happens to be the biggest. With a huge war chest and massive PE sponsor, our pick has plenty of potential for new deal flows and to make the most of the current lending environment. Given that our pick’s portfolio is mostly floating rate debt, it continues to profit from the rising rate environment, which is exactly the opposite of the failing banks.
With a shareholder-friendly management, long history of buybacks and dividend growth, and potential for future gains, our BDC pick makes for an ideal high-yield play for a variety of portfolios.
To make room for our increased BDC position, we’ve reduced our holdings in a pipeline operator.
