Most people tend to focus on the publicly traded equity markets. However, there is a vast ecosystem of medium-sized private firms out there. And they require plenty of capital, just like the big boys. And in that, our latest Best High-Yield Dividend Stocks Model Portfolio pick has been able to profit and find a successful niche!
Our pick is a business development company (BDC) that makes loans to middle-market firms in order to fund expansion projects and other needs. The kicker is that our pick doesn’t just hand out cash willy-nilly. It focuses on firms that have already received backing from private equity groups and/or its own sponsor. This relationship provides safety, as these firms have already gone through a vetting process. Moreover, required equity stakes also provide a safety net.
The combination has allowed our pick to gather plenty of cash flow. And as a BDC, it hands that cash back to its investors through a high yield.
In addition to our new BDC firm, we also added another middle-market lender and removed a real estate finance company and triple-net-lease REIT specialist.
You can check out the Best High Dividend Stocks Model Portfolio to explore all the stocks.
