In the current unpredictable economic environment, many of the biggest banks have started to clamp down their lending activity, boost loss reserves and hoard cash. This puts firms needing cash for expansion between a rock and a hard place. Luckily, there are other ways to get their needed funding, and our latest Best Monthly Dividend Stocks List pick happens to be one of the best.
Our pick is 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’s a fertile niche, but one that pays investors plenty of dividends.
The secret to our pick’s success remains its partnership with its private equity sponsor as well as its focus on senior floating rate loans. The combination provides plenty of underwriting and inflation protection. For investors, it allows our pick to pay a huge 12%+ dividend yield.
You can check out the Best Monthly Dividend Stocks List to explore all the stocks.
