Ask any middle child and they’ll tell you it’s the place to be in the family hierarchy. The same could be said for businesses. Often ignored by the banks and Wall Street, the middle-market niche can be tough to find the funds needed to grow – and that’s where our Best Monthly Dividend Stocks List pick comes in. Focusing on the middle continues to support its high dividend; an opportunity investors can take advantage of before the stock goes ex-dividend on Tuesday, March 7!
You can check out the Best Monthly Dividend Stocks List to explore all the stocks.
Our pick is a business development company (BDC). It provides loans to middle-market businesses. Our pick takes it one step further and focuses its attention on the so-called lower-middle market. More than 200,000 private firms fit this definition, and they are all scrambling to find capital.
The win for our pick is its senior loan and equity-holding status. This puts it at the head of the table, providing security and bankruptcy protection. By reducing its risk, our pick has been able to prosper. Solid underwriting policies and the floating rate nature of its credit portfolio have allowed it to see its cash flow increase.
In fact, our pick is so good at what it does that other firms have continued to partner with it to manage their middle-market investments.
With billions of investments under its wing and growth still to be had, our pick makes for a top-notch monthly paying BDC.
