Income seekers certainly have a lot of choices these days. Thanks to the Fed’s path to higher rates, a variety of bonds and other dividend-focused sectors are now paying some hefty yields. Investors really have the pick of the litter when it comes to building an income portfolio. However, only a few industries offer the potential for not only high income but growth as well.
Business development companies (BDCs) could be one such industry.
BDCs have gotten a new lease on life in recent years, offering very high yields and the chance to play “public private equity.” Entering a new year, the industry has some growth potential behind it as well. For investors, the combination could make BDCs a strong income portfolio addition.