There are lots of yields over 10% to choose from (such as those in the table below), and some of them are actually worth considering (especially 2 of the top 3 specifically highlighted in this report). But how safe is it really to own such massive income-producing investments? (especially at this point in the market cycle). We’ll build up to that answer (in the conclusion) by reviewing three specific big yielders (one REIT, one BDC and one CEF). Enjoy!
Top 10 Big-Yields: REITS, BDCs, CEFs (July Update)
Concentration can help you get rich, but diversification helps you stay rich. And if you own 25 different flavors of big-yield mortgage REITs—you’re still not exactly “well diversified.” In this report, we countdown our to 10 big-yield opportunities, with a special focus on diversifying your risks (across different investment types) while simultaneously keeping your income high.
Capital Southwest: 40+ Big-Yield BDCs Compared
If you are an income-focused investor, big-dividend Business Development Companies (“BDCs”) are hard to ignore. However, not all BDCs are created equally. In this report, we review one BDC Capital Southwest (including its business strategy, dividend safety, valuation as compared to 40+ other BDCs, and the risks). We conclude with our strong opinion on investing in Capital Southwest in particular and BDCs in general.
Attractive 8% Plus Yield BDC: Interest Rate Risk Baked In
This big-dividend hidden gem of a BDC may be popular in certain niche investment circles, but if you haven’t considered it previously, it is attractive and worth a closer look. It has many of the important qualities you’d like to see in a BDC (such as internal management, strong NII and a healthy dividend), plus the growing macroeconomic interest rate risks are already baked in—to a significant extent. In this report, we dive into the important details (ahead of its upcoming earnings release on January 31st), and then conclude with our opinion on investing.