The key word in private equity is “private.” These funds thrive on buyouts and companies that aren’t publicly traded. To do so, requires a hefty dose of capital. Luckily, for our newest Best Monthly Dividend Stocks List pick, it has had a long history of providing such capital to private equity sponsors and management teams. Investors have benefited too, with a history of dividend increase as well as special payouts!
Structured as a business development company (BDC), our pick makes loans and financing available to the middle market. The difference is our pick focuses on mature, real revenue-generating firms. There are no risky start-ups here. Additionally, these funds are specifically earmarked for buyout transactions. So, a larger firm or management team calls our pick and gets funding to buyout rivals. In exchange, our pick gets equity and a hefty coupon rate.
And thanks to its own private equity sponsor, our pick’s ideal pipeline is backed by some of the best in the business.
The combination provides a unique investment opportunity to play private equity with single ticker access. For investors, the opportunity also pays hefty dividends. In the end, our pick is an interesting choice for portfolios looking to boost their monthly paycheck.
In order to make room for our new BDC play, we’ve been forced to remove an entertainment-focused REIT from the list.
You can check out the Best Monthly Dividend Stocks List to explore all the stocks.
