Even private equity needs a helping hand every once in a while. Afterall, it takes a lot of funds to conduct a deal and turn a firm private – and you can’t exactly go to a bank and ask for a loan. But what you can do is talk to our latest Best Monthly Dividend Stocks List pick. And it seems a lot of firms have been talking to our selection, enough to have three years’ worth of steady dividend increases. Investors can take advantage of the firm’s high monthly yield before it goes ex-dividend on Thursday, January 19, with a dividend of $0.08 per share.
You can check out the Best Monthly Dividend Stocks List to explore all the stocks.
Our pick is like any other business development company, in that it makes loans to the middle market and private firms; however, the twist is that our pick provides financing for equipment or working capital. It also ensures extra funding to make buyouts happen. This is a unique profile in that there are no risky start-ups so our pick’s focus is lending to established firms/management teams looking to expand.
And by making these loans senior and taking equity kickers, our pick reduces its risk even further by taking an active role in many buyouts.
Growth continues to be had in the current environment. With many firms’ struggling, stronger companies are starting to pounce on opportunities in the M&A world. This has sent plenty of management teams, private equity firms and other businesses to our pick’s door.
All in all, our pick is a unique BDC play: one that continues to reward investors with its hefty dividend and monthly yield.
