Size and scope matter when it comes to private equity (PE). Larger firms are able to do deals that smaller PE sponsors can only dream of. This includes activity up and down the entire capital stack. Our latest reaffirmation in the Best High-Yield Dividend Stocks Model Portfolio is a prime example of what happens when a PE uses its sheer size to its advantage. Investors are able to score a 10% dividend yield and a long history of payout stability!
You can check out the Best High Dividend Stocks Model Portfolio to explore all the stocks.
As a business development company (BDC), our pick lends money to middle market and private firms. The beauty remains in the fact that our pick is sponsored by one of the largest alternative asset and private equity firms on the planet, allowing the company to make all sorts of loans across the capital stack. But thanks to its PE sponsor, our pick has been able to reduce its risk and have a constant flow of deals its way.
With more firms remaining private, and the need for capital thanks to tightening bank lending standards, our pick has a long runway for growth. At the same time, our pick’s long history and size has allowed it to weather some nasty storms, including both the Great Recession and the COVID-19 pandemic.
For investors, the end result is a high-yield pick with plenty of muscle behind it.
