Capital remains the lifeblood of the modern financial system. However, economic worries and regulations have limited the banks’ ability to lend out needed funds. For plucky players outside the realm of banking, this has been a boon. And our latest Best Monthly Dividend Stocks List pick happens to make the most of this fact!
Our pick is what is called a business development company (BDC). These firms provide loans and other funding needs to the middle market – firms too big for their local bank but not big enough to tap a Wall Street investment bank to issue bonds. It is a fertile niche. And thanks to the current environment, one that rewards shareholders. In this case, with a hefty 12%+ monthly paying dividend.
Like many BDCs, our pick has been able to ride the wave of success thanks to its private equity (PE) sponsor. A hefty dose of floating rate debt across a wide range of capital loans has helped the firm fight inflation and create cash flows for its investors.
For those investors looking for a hefty monthly yield, our BDC pick is perfect to generate significant income.
You can check out the Best Monthly Dividend Stocks List to explore all the stocks.
