Reddit Posts
What stocks cycle back down to a low, but never really go below that level? (3 year update)
What stocks cycle back down to a low, but never really go below that level? (3 year update)
NewtekOne ($NEWT) Q1 triumphs lead to after-hours surge, as the stock rises 3% on strong results and outlook.
We've hit peak employment, Unemployment rate rises from 3.4% to 3.6%.
Barings BDC downgraded to Perform at Oppenheimer after Q4 losses
5 Dividend Stocks with 7%+ Yield Wall Street Analysts Recommend
5 Dividend Stocks with 7%+ Yield Wall Street Analysts Recommend
5 Dividend Stocks with 7%+ Yield Wall Street Analysts Recommend
Ever heard of EverGen Infrastructure Corp. (TSXV: EVGN | OTCQB: EVGIF)? Well, I'm glad you asked...
Ever heard of EverGen Infrastructure Corp. (TSXV: EVGN | OTCQB: EVGIF)? Well, I'm glad you asked...
Recession-Resistant Stocks That Can Survive Stagflation
Company trading below net asset value (no debt, pure cash)
Company trading below net asset value (no debt, pure cash)
Where do I put $ in this volatile inflationary environment?
Historical rate vs stock price compare chart? Where can I find it?
A tool that compares Interest rate and ticker movement graph?
🚀BLIND-KOIN ($B.D.C) is looking like an extremely promising long term investment, high potential to be the next hidden Gem💎
Energy Transfer ($ET) DD from discord that I wrote.
DD I wrote for my friends and I discord, thought I’d share.
Rand Capital (RAND) severely undervalued?
Rand Capital ($RAND) BDC Holds Major Block of Recent IPO ACV Auctions ($ACVA) - Stock Substantially Undervalued
Mentions
Good post—this sent me down a bit of a rabbit hole and I think there’s actually something here, but it’s a little more subtle than a straight meme play. The core connection checks out: Gladstone Investment Corporation → Schylling Inc. → NeeDoh. What stood out digging further is that **Schylling isn’t just a tiny side holding**. There’s an article here that breaks it down pretty well: [https://www.investing.com/analysis/the-viral-toy-hiding-inside-a-500-million-dividend-stock-200678116](https://www.investing.com/analysis/the-viral-toy-hiding-inside-a-500-million-dividend-stock-200678116) They’re talking about **\~$25M of value creation in a single quarter**, driven by actual operating performance. That’s meaningful inside a BDC like GAIN. This is before the viral trend. I think the part people might be missing isn’t just “NeeDoh is viral,” it’s what that *could* lead to. If Schylling is actually putting up real numbers, it starts to look like a new legitimate branded consumer asset, not just a toy company. That’s the kind of thing that can become an **acquisition target** (strategic or PE), especially if the growth sticks. And if that happens, GAIN has a history of exiting investments and returning gains to shareholders. So you’re not just relying on NAV drifting up—you could get realized value. Also worth noting they just announced a CEO succession plan: [https://www.investing.com/news/company-news/gladstone-investment-names-new-ceo-in-succession-plan-93CH-4575214](https://www.investing.com/news/company-news/gladstone-investment-names-new-ceo-in-succession-plan-93CH-4575214) Not saying that’s a catalyst by itself, but leadership transitions sometimes line up with portfolio monetization. Near-term, the big date is earnings on **May 12**. That’s probably the first real chance for management to comment on how Schylling is performing and whether any of this is actually material. Might be a run-up, might not. But after reading up on this - I agree with OP, I don't think the catalyst has hit yet.
same question for ARCC and TCPC. why did BDC funds jump last couple days?
When you buy a share of stock in a bank or BDC you are not giving the company money, Instead you buying the stock from someonethatwnats to sell the stock. Once you own the stock you can sell it at any time if you change your mind. Many private credit companes don't have stock. So If you want to invest in private credit you give your money to the private credit and then the money is loaned out. So if you cahange your mind and want to withdrawal the money, you can't because it has been loaned out. So you have to wait for the private credit fund to have enough cash or you have to wait for the loan to be payed off. The private credit problem has been caused by a few rick people investing their money without reading to prospectus or understanding what the invest is. They changed their mind when the market went down and tried to pull all of their money out. Even thought he propectus states that you may not be able get all of your money out. So the problem is not in BDC or banks which are well reguated lenders of money. And you can sell your shares at any time. Also the S&P500 is a growth index fund Banks, BDCs, Private credit are all a type of dividend funds. Dividend funds rarely have petter performance than growth index funds. But unlike grwoth index funds they provide cfonstant stream of cash flow unlike growth investments. Which for some poeople is more important than captial gains.
The best solution to your problem is to invest for dividend. Is you want your monet todouble in 8 year and use the rule of 72 you the 72/ 8 -9% yield is what you need Now many would say 9% is not doable. But it is ARDCC has been paying 9 % for about 15 years BDC (business development companies have been paying 9% for a very long time. So in Addition to ARDC I have PBDC that invest in only BDC and it alohas a 9% yield Both are funds holding multiple asetsk EMO invests in MLP (companies that move oil and gas via pipelines. It yeild % BDCs have been around for 50years and MLP for about 40 years. These funds invest you money and than divi up the profits and send you monthly or quarterly check 100k in any of these 3 fund will generate 9K per year o income you can either reinvest odor use the money to cover wedding cost or college costs. Now you don't want to have all your income comming from one fund So 33K in ARDCC, 33K in PBDC, and 33% in EMO is a better combination. There are also good covered call fund with high yield and tax efifency and some growth. Some of the best ones are QQQI 13% yield, SPYI 11%, GPIQ 10%, GPIX 8% are also worth coonsidering.
Index funds only buy share of publicly traded companes. Companes that have stock. Private pridit companes don't sell stock on the open market so they are not in growth index funds. Public credit companes, banks and BDC. These companes sell shares so your money stay liquid and you can sell your shares at any time. This is not the case with private credit.
Interesting but theauthorstates it started in the 70s. No the first wave was in late 20 and early 30 when the margin loan business and markets collapsed. resulting in the great depression which ended after world war 2. about 15 years before the 70's The only thing else I will add is that there is a big difference between private credit and public credit. Orivate credit funds are not traded on the open market. So these funds have not shares you can purchase or sell at any time. So when you are investing in these companies you are giving your money to the fund and then they loan it out. So as soon as the money leaves you hand it is no longer liquid. Instead all you get is aobligation from the fund to revive the profits from the loans made. If you change your mind you cannot get all of your money back quickly. You have to submit a redemption request and then the fund takes money from its cash reserves to refund your money. But this cash reserve is smalll so you likely will have to wait months or a year together all of your money back. Public credit and banks and BDCs. So if you want to invest in public credit you simply buy shares of the the public credit company. Share you can sell at any time. You money many not actually go to the public credit company. So your money stay liquid. The BDC or banks take out loans to get cash and loan this money to customers. Than any profit they public credit company make is distributed to share holder as a dividend. So if you change your mind about an investment in puliccredit company you can sell your share at any time. without filling out a redemption request. As of right now most of the problems have been in the privet credit side of the business. there is as of right now no issueswiht public side of the businesses. but people are worried so share prices are dropping with no bankruptcies or obvise problems with he public funds which are still paying dividends. Will this hold? I don't know but but as of right now I see no reason to sell my public credit funds. And I don't own private credit or have ever contemplated investing in that sector of theeconomy. I am also avoiding real estate because that looks like a minefield to me.
Actually there are other reasons why a yield may be higher that have with the risk of a dividend cut or a company loosing a lot of its share price. Most companes are by low not required to pay a dividend. so these companies often pay a dividend of 5% or less. but Business development companes are subject o rule that requir them to pay out 90% of there profit as a dividned. So most BDC pay 8 to 10% yields. Now yes some periodically have problems like any regular stock but the good ones pay year after year a very consistant yield. MLP (master limited Parnerships) are a group of companies that are also required to pay a higher yield. these companies operate pipeline to move oil and gas. and typically hav yield above 6%. So if you see a high yield it doesn't automatically mean something is fishy. Most people are use to seeing low yields of less than 5%. but occationally they look at stocks they are not invested in and occationally see a BDC paying 10% and just assume something is wrong with it and look away. There are a lot of funds paying 5 to 10% and a few paint up to 15%. But once you ge to 15% you have to be very carful and thoroughly evaluate the company.
On April 8, Moody's shifted its outlook for the Business Development Company (BDC) sector to "negative." The agency cited mounting redemption pressures and the prevalence of PIK (Payment-in-Kind) interest, where interest is added to the principal, as major red flags for the sector's liquidity.
Is private credit a bigger risk than oil? We're seeing software still getting wrecked and software companies are the largest users of expensive PIK debt, which allows borrowers to skip cash interest payments on their debts until the loan matures, flattering lenders’ balance sheets and potentially masking distress until much later. BDC assets have quadrupled since 2020 and now we're starting to see the weakest earnings results for BDCs in years. The sharp drop in value is likely going to weigh on the $2 trillion private credit market and redemption pressure on unlisted funds is going to continue to rise. Could be setting up for a big liquidation event but prob not big enough for a market crash
In general the higher the grwoth the lower the dividend. The best growth stocks have a dividend of zero to about 2%. And for dividends you can get high yields up to 10% but you likely get very little growth. Young companies generally have a lot of avialble paths to grwow the business. However eventaually as a company matures and competitors start compenting for business ther are fewer to no paths to grow the business. So the company pays invests a dividend. A dividend is simply a way to share the companies profits with invetors. Now many assume the maximum safe yield of a stock is about 5%. This would be true if all businesses followed the same rules. But BDC, MLPS and REits legally have to follow different rules than banks for rebgular companies Coc Cola. SO FOR BDC MLPS and REITS it is not unusual to see yields of 5 to 10%. Simply because the rules they have to follow are different. For example I have ARDC 9% yeild, PBDC 9% and EMO 9% So if it possible for dividend investors to get higher yield with minimal extra risk. And some dividned bund are taxed differently than others so some are not tax efficient while other may be very tax efficient.
What shitty bets? I’m referring to capping redemptions at 5%, which is normal at inception for BDC funds and all investors agree to it before they put their money in.
BDC stocks already exist inside of index funds in 401ks, such as SP500. And yes, they do suck as individual stocks.
What’s the deal with BDC right now. Blue Owl looks like it’s nearing bankruptcy. Not sure about Main and Arcc
It’s ironic you mentioned KKR’s flagship BDC. just last week, Moody’s actually downgraded it to junk status (Ba1). Because their non accrual rate hit 5.5%, which is way higher than their peers. Their stock is currently trading at a 50% discount to its book value. If they were truly 'well-diversified' and safe, the market wouldn't be pricing them like a house on fire.
None of what you said is true. Most provate credit funds are well diversified. This industry emerged because banks had to hit strict ratios making them derisk their balance sheets. Asset backed finance within these portfolios are a subclass, of which tends to outperform. See KKR’s BDC private credit fund.
I am, running BDC companies to generate income - I'm a late starter - It is kicking ass though.
You are not replying to a novice individual. I've worked for a BDC for 30 years my friend. I still have contacts. And with what I see, I am worried and never been that worried since 2008. This is different. There is no safe haven this time. The rise in Japanese yields is the last straw that will break the camel's back. It will be a wrecking event that will set us back heavily and that will eventually lead to the start of America's decline. I wish I am wrong, and I hope I was optimistic as you are. Unfortunately, no much can be done at this stage. And no, this is not conspiracy. It's reality. Good luck.
I can't recall which podcast I heard this on, but the guest made two points regarding private credit that resonated with me. First, he claimed that default/delinquency rates were lower than their higher rated public credit counterparts. The issue with that, is that with private credit presumably being the higher risk basket one would expect the opposite. So he seems to think maybe they are using PIK or other methods to delay/extend the loans and make the numbers look better. The second point he made, was that when you liquidate holdings to cover these redemptions, there is going to be a bias towards selling off the higher quality assets because you can get par value for those, whereas if you try and offload the lower quality assets, you may be forced to write those down and recognize losses. Overtime, that is going to leave the fund holding lower and lower quality loans. One could see a scenario where redemptions requests remain high while at the same time the economy starts trending downward causing more issues in the portfolio. With redemption limits set to 5% per quarter, it could be a few years before you can get your money out, and you won't really know how bad the underlying portfolio is until they are forced to start off loading the underperforming portion of the portfolio. No idea how accurate or likely the above scenario is. And it feels like the broader risk to private credit is the overall economic picture. If that deteriorates rapidly, then a lot of other stuff is going to go down to. So being down 25% on a BDC might be preferable to being down 60% on an AI stock. But I would definitely consider the risks. Also, if you are buying public BDC tickers you don't have the same redemption risk that a direct investor would, so it is not quite apples-to-apples.
Eh, no. Institutions should NOT hold that risk. If some yield chasers plonk their wealth into a BDC, that's their choice and they should be bailed out by "institutions", i.e. taxpayers.
Buy OWL is probably easiest way. BDC with high leverage in software company loans. also stopped investors from cashing out ala Bernie Madoff so valuation is dropping ... a bit. Has a higher Sharpe value then Bernie ever claimed possible, so good luck 🤞
False, not all BDCs are evergreen funds. Look at Blue Owl. OBDC is their publicly traded BDC. OBDC is their non-traded BDC that reached its AUM target and is closed in the process of seeking a liquidity event. OCIC is their flagship evergreen BDC fund. In the context of what’s going on in this space, most of the publicly traded BDCs have been hit by the slew of bad news and are trading at heavy discounts to their NAV. The non-traded non-evergreen BDCs that have been closed to new investments and seeking a liquidity event are in the most trouble, since Managers won’t be able to merge the fund into a already publicly traded counterpart without their investors taking a NAV haircut (see blue owl OBDC II). Investors will have to sit and wait for the portfolio to be sold near par for their return of principal and that could take years. The evergreen BDC space is an in interesting spot right now since it really is the first time we’re seeing quarterly redemption’s being oversubscribed across the board pretty much. What happens to these fund’s enter net outflow phase from consecutive quarters for the foreseeable future? I mean, some of the managers who honored the oversubscribed redemptions can’t keep doing so and will have to gate them to the 5% that was set. Do they shut down redemptions all together if it means protecting the NAV of the fund? If you look at the prospectus of these products it is something they can do. And that’s when the panic will hit.
You post this like its a shocking outrage that they cannot get their cash immediately. That is the deal with private equity, and I guarantee they all signed on teh line with that being disclosed. You get a higher return, but it is not liquid. There are similar businesses called BDC's that do the same thing, and you are liquid, but not at the value you invested - at whatever the market will pay in the moment.
Yes, BDC are evergreen funds. Have you seen their AUMs though? The big ones are shrinking, and some have to sell off loans at par to raise cash for redemptions. But don’t worry, they’re selling their worst performing loans and keeping the best ones in the fund for loyal LPs (I’m being sarcastic). Blackstone employees are also contributing cash to their largest PC fund to meet redemptions - to show confidence. Lemme tell you a little dirty secret - they’re not subscribing to fund units at NAV to rank pari passu with LPs. They’re lending to the funds (like the banks). Why? Cos lenders get first lien on the entire loan portfolio. So when the sh*t hits the ceiling fan, they’re the last to take losses and they will still get their 6-8% interest.
>What about infrastructure software? Waste management? Insurance services that collect fees regardless of market direction? >I keep coming back to businesses that are essentially toll booths - they collect a cut of transactions that happen There are specifically companes that are required by law to pay out most other income as dividends. MLPs companies move oil and gas through pipelines and BDC that loan money to companies. As result of the laws that they must follow they pay higher yields than many other companies. For BDCs I have a ETF PBDC 9% yield and for MLPs I have EMO 9% yield. And there are companies that deal with infrastructure I have 2 such funds I like UTF 7% and UTG 6.4% yield. And we all have to deal with home loans business with buisness loans. These loans are often sold as loan obligations. so when the loan if payment is made most of the money goes to the people that own the loan obligations. I have two C collateral Loan obligation funds JAAA 5.5% and CLOZ 8%. I also have a general credit fund ARDC 9%. All of these funds are consistant dividend payers.
AI: * Secondary discounts widening (<85%) * BDC NAVs dropping * BX / KKR / APO selling off hard * Real estate marks catching down
We are on the same page on this. People should not investing in opaque, intransparent funds - sold by people who earn comissions. It’s completely insane, and also full of useless middle man fees. If you’re a large institutional investor, you get the data. The rest just speculate. BDC structures sold by middle men at fees too good to be true are the problem. Not the loans.
Business Development Corporations have done poorly in the last few years in comparison to the S&P 500. [7 Best BDC Stocks and ETFs to Buy for Income | Investing | U.S. News](https://money.usnews.com/investing/articles/best-bdc-stocks-and-etfs-to-buy-for-income)
Agree that would be better but still bad. Check out just about any BDC right now most are trading well below their asset values for similar reasons ( debt) as MSTR.
99% of people don't even understand how BDC and CLO actually work. many times, there is a ton of leverage involved and therefore a non performing asset can cause a 90% drop in its book value. if you don't know what that sentence meant, you owe it to yourself to get smart or don't buy these stocks. even a 40% discount to NAV might be meaningless. unless you have the visibility to actually evaluate performance risk on these loans, you are gambling. recent illustrative case in point. Blackstone last quarter marked one of its assets at 100% book value. three months later, they marked it to 0. let that sink in. within 3 months, your BDC or CLO can go from 100% to 0%. do you realize how insane that is?! the second thing is redemption and liquidity. there is a reason why these funds aren't liquid. the leverage causes substantial volatility, and if redemption spikes, it's like a run on the bank. your fund can blow up in a single day because it doesn't have cash to pay out redemption requests. they sell assets in the next quarter - at a steep discount - to make up cash to pay redemptions. this reduces NAV... which reduces the share price, which causes more redemptions... a doom cycle that can totally go to zero in a hurry. nobody ever believes things can now up, until they just, well... blow up.
The media is honestly a bunch of clowns. Until late October - Private credit FOMO was their M.O. and then they flipped overnight to private credit is a pariah. Blue Owl should’ve just listed (not merged) their BDC. Traded BDCs always trade at a discount because the structure is essentially obsolete and there are few natural buyers.
If Blue Owl public BDC wasn’t trading at a 20% discount to NAV at the time they announced the private fund merger, then investors/advisors don’t raise hell about people getting a paper loss. The real question is why was it trading at such a discount? Credit concerns related to garbage tech startups. Past performance is not indicative of future results! Credit quality concerns and Bloomberg/WSJ fueling fear via headlines over “locked up money” make people question everything. Please don’t respond back to me with default rate scenarios. I’m aware. I also very much agree with your sentiment. The problem is the wind is blowing a certain direction and it’s picking up momentum. Expecting investors to act rationally is foolish.
They're the most leveraged to the private credit -> neocloud pipeline that's cracking. CRWV has $14B in debt, has never been profitable, and depends on circular Nvidia vendor financing to keep the lights on. APLD just issued $2.15B in new secured notes to build capacity while Nvidia simultaneously exited their equity. That's your canary. HIVE is a subscale miner pivot play getting squeezed from both sides: crypto revenue dying and CoreWeave locking up preferential GPU access. The connective tissue is Gulf sovereign wealth money. The SWFs that were supposed to fund the next wave of AI infrastructure buildout are now redirecting capital to missile defense and invoking force majeure clauses on existing commitments. That demand was baked into every forward revenue projection these companies used to justify their debt loads. Pull that capital out and the utilization/rental rate assumptions collapse, which is what makes the debt unserviceable. Blue Owl is the first domino. $1.4B forced liquidation, redemption gates shut, securities investigation opened. Their BDC book is full of exactly these kinds of neocloud loans. When the collateral (GPU inventory depreciating at fire-sale rental rates) can't cover the lending, the credit facilities get pulled and these names hit the wall.
It’s a non-traded BDC, with a quarterly redemptions capped at 5%. Of course this would happen, private credit is a long term investment. They are packaged and sold to retail investors. This is when asset managers are supposed to shine, they need to sell assets. Secondary market is going to be hot, this and blue owl show that investors want out of the asset class. They fear the Iran conflicts impact on technology. Secondary focused draw down funds are going to love this, if there is a crash then good credit selection will pay out. If there isn’t a systematic crash then they will have gotten so many assets on a discount .
They hit the gating limit for their private BDC product. Essentially, if they hit this limit (usually 5% of total fund NAV but sometimes slightly higher) they will pro rate the requests received to ensure all those who requested receive a partial amount of their withdrawal while remaining under the gating % limit for the fund. All of this is clearly stated in the fund’s prospectus and quarterly redemption documents
They hit the gating limit for their private BDC product. Essentially, if they hit this limit (usually 5% of total fund NAV but sometimes slightly higher) they will pro rate the requests received to ensure all those who requested receive a partial amount of their withdrawal while remaining under the gating % limit for the fund. All of this is clearly stated in the fund’s prospectus and quarterly redemption documents
not a bad reason to enter ngl, cluster buys like that especially from a co-founder are hard to ignore.. just maybe skim what a BDC actually is before averaging down lol
TSLX is a BDC for high income dividend plays that pay over 10% divvies. All of the BDCs like OBDC, ARCC and MAIN are down due to the current low rate environment and to certain extent, too much exposure to software and tech lending. Imho, it’s all overblown and not all BDCs are not created equal but they sold off the same in this panicky market.
Now is a really good time to buy BDC’s ARCC is trading 8% discount to nav, I am loading up
I piled into PE/BDC bonds that are 5-6.5% and not affected by any FUD so far.
Amen. Private Equity is currently bleeding out and has been all year. Hell, I'm not pulling the fire alarm (quite) yet, but I have a niche spot in my portfolio of BDC investments (Ares Cap, etc) that I never expected (as designed!) much growth out of, but liked the recurring revenue.... We've got some serious (serious serious) chop in front of us. I don't lurch, but I'm accelerating towards things like REITs in place of pure lenders as income generators.
AI is actually affecting their software side of business Now is a good time to buy BDC’s- ARCC and BXLS are down 20% with ARCC trading under nav- just free money from the software slaughter
You should buy all the blue owl and the other BDC’s now while they’re in a dip. Load up on them.
Retail folks don’t understand private BDCs are illiquid investments and the underlying asset is a pool of non-traded loans… I’ll bet they have sign 10 times acknowledging this illiquidity to even invest in a non-listed BDC
don't restriction search to funds with the lowest expense ratio possible. You only need to exam the expense of the fund when you are looking at 2 or more nearly ideentical funds. So by restricting the search to the lowest expenses you got a list of mainly growth fund. Growth funds are very good. Since they only follow an index they are so simple computers can do most of the day to day operations of the fund. Leading to low extremely low expenses. some specialty funds Lime MLPS and BDC dividned funds will probably be excluded. MLPs funds have to deal with K1 tax forms which tax processing fees to the expenses. BDC are subject o a flawed SEC rule that requires them the add associated expense to the funds expense. The funds never pay this expense which is about 13%, PBDC has a yield of 9% a real expense of o.7 and BIZD 11%yield has real expense of 0.4. Yet PBDC has the higherI total return. It is not ideal to have a protfolio of just grwoth. Retirement account have deposit limits. which will limit the size of your portfolio by the time you retire. Having some high dividned funds in there will add cash flow into your account beyond what you get with just growth funds or gobvernment bond funds. I have PBDC, EMO both 9% yields in and QQQI in my portfolio for this very reason. The high dividend yield from these funds early exceed the $7500 deposit limit of my roth. The higher cash flow into the account allows the portfolio to grow faster.
I got paywalled from that specific article, but I think it’s missing some key points. Like why are investors pulling out at a slightly higher rate, what is the normal rate from the last 5 years? (Like 5% of shareholders withdrawing may be a ton or maybe it’s normal and up from like 4.75%), and where/what are they doing with the funds? I work on a bunch of different PC and alt investment funds, what I’ve noticed from my personal experience (these are like $500m-2.5b funds) is investors are pulling out of the more speculative and poor performing funds and putting it into better performing and more income driven funds. So for example we scrubbed the launch of 3 crypto funds because investors lacked interest and the pilot phase did poorly, but it’s not like those investors stopped investing most of them just went to a BDC fund and a bit went to a fixed income fund. We’re still expecting about a 30% increase in subscriptions for the year, which is on par with last year, but we are launching less new funds than we did since investors seem more interested in older funds with past performance.
Northstar Clean Technologies (TSXV: ROOF | OTCQB: ROOOF) is a Canadian clean-technology company that reprocesses waste asphalt shingles into recovered materials, with the major value driver being recovered asphalt. The problem they’re solving is large and persistent: Northstar states that about 16.5 million tons of asphalt shingles are landfilled annually across Canada and the U.S., creating both environmental pressure and rising disposal costs. Asphalt itself is a mature, high-demand commodity used in road construction and maintenance, meaning Northstar is supplying recycled input into an existing, essential market rather than trying to create new demand. Northstar’s first commercial plant, Empower Calgary, is built and operating. The company has secured three sources of feedstock into Calgary: (1) IKO Industries under a five-year manufacturing-waste shingle supply agreement, (2) Ecco Recycling & Energy under a three-year agreement tied to its construction-and-demolition landfill, and (3) the City of Calgary under a five-year agreement beginning in 2026 covering shingles collected at the City’s Spy Hill, East Calgary, and Shepard waste management facilities. This diversified feedstock base matters because recycling infrastructure only works if inbound material supply is reliable and long-term. On the sales side, Northstar has secured a guaranteed buyer for its primary output. The Calgary facility operates under a five-year take-or-pay offtake agreement with McAsphalt Industries, a subsidiary of global infrastructure group Colas, for 100% of the liquid asphalt produced at the facility. A take-or-pay structure is important because it significantly reduces demand risk during ramp-up by ensuring that production volumes have a committed buyer regardless of short-term market conditions. The broader market opportunity is supported by tipping-fee economics as well as product demand. Landfilling asphalt shingles is costly and becoming more restrictive over time. Northstar highlights tipping-fee benchmarks such as approximately $113 per tonne in Calgary and approximately $150 per tonne in Vancouver, illustrating why municipalities and waste operators have economic incentives to divert shingles away from landfills. These fees form part of the economic backdrop that supports Northstar’s model alongside recovered-asphalt sales. Beyond Calgary, Northstar is actively advancing additional sites. In Hamilton, Ontario, the company has signed a Letter of Intent with the Hamilton-Oshawa Port Authority (HOPA) for a long-term lease and is progressing permitting and commercial discussions for a second facility. Northstar has also signed a feedstock LOI with YORK1 to support shingle supply for the Hamilton site, positioning Hamilton as the next Canadian expansion following Calgary. In the United States, Northstar’s expansion strategy is closely tied to TAMKO. TAMKO is a large, privately held U.S. manufacturer of asphalt shingles and roofing materials, meaning it operates directly inside the same supply chain Northstar targets. Northstar’s first planned U.S. facility is being developed to supply a TAMKO manufacturing plant in Frederick, Maryland, anchoring site selection, logistics, and demand around an existing industrial footprint rather than a speculative greenfield location. Northstar has also indicated plans for three additional U.S. facilities built around similar industrial partnerships. From a funding perspective, Northstar has already demonstrated access to institutional project financing. The Calgary facility was supported by a senior secured loan from Business Development Bank of Canada (BDC), and the company has received a non-binding Letter of Intent from Export Development Canada (EDC) indicating potential support of up to approximately C$12.5 million for its first U.S. facility, with the possibility of additional support for further U.S. sites, subject to standard conditions. While the EDC LOI is not final, it signals that Northstar’s technology and project structure have progressed to a stage where government-backed lenders are willing to engage on future facilities, rather than the company relying solely on equity markets. Northstar has also referenced Vancouver as another future opportunity based on high tipping-fee economics and landfill-diversion pressures, reinforcing that the Calgary facility is intended to act as a template rather than a one-off project. While timelines vary by site, the company is already engaged in real preparatory work, leases, permitting steps, feedstock discussions, and partner alignment , rather than merely presenting conceptual expansion ideas. From an investment perspective, the central debate is timing and execution, not market existence. The demand for asphalt is well-established, landfill disposal costs are rising, the Calgary facility is operating with three feedstock suppliers and a guaranteed buyer, and additional sites in Canada and the U.S. are actively being developed with identified funding pathways. The remaining challenge is translating this operational progress into consistent production, revenue, and financial results in reported quarters, a transition that represents the company’s key inflection point over the next several months. Not financial advice, do your own research!
In general as the dividend of a fund increase the growth decreases. Dividend fund in general continue to pay even whine the market price drops. So by switching your investments a bit more into dividend you are erectly switching for fixed income instead of growth and reducing your risk. Also the S&P500 index has a long term average growth rate of about 10%. There are funds and stocks that do have dividends close to 10%. So in your roth you could add commp funds that invest in companes that are not a big part of the S&P500. For example ARCC is a BDC there are no BDCs in the S&P500. ARCC has a yield of 9% which is common for BDC and since the companes founding the stock has performed a bit better than the index. When the growth index has a down year ARCC keeps paying its dividend and pulls a bit ahead. The are a number of f=good BDC so I invested in PBDC and the other is BIZD. In my roth Ihave funds like QQQI 13% yield,EIC 11%, ARDC9%, PBDC 9%, EMO 9% CLOZ 8%. So if the index is down I can use the dividend to invest in VOO or any other growth index you have. And in years when growth does very well you could sell some of the growth and lock that money into high dividends funds with have a comparable return and reduce your risk of over concentatration in the magnificent 7. For 401Ks you are limited on your fund choices so for dividend you may be limited to bond funds so you may be forced to use lower dividend yields. One other advantage having dividned funds in Roth or retirment fund is that if you become unemployed you will still have money flowing into the fund. With now I cannot depoist into my roth because my income is too high but the dividend funds are depositing 5K a month of income into my roth.
17% redemptions in a quarter is brutal for a BDC, especially one that went heavy into datacenter loans during the AI hype. Private credit funds are notoriously illiquid so when everyone's trying to get out at once it usually means the underlying assets are way worse than what's being marked on the books.
# Blue Owl BDC Allows for 17% Redemptions as Investors Storm Exit [Blue Owl Capital Inc.](https://www.bloomberg.com/quote/OWL:US) is dramatically increasing the amount of money investors can pull from one of its private credit funds after being hit with a deluge of redemption requests last month. [https://www.bloomberg.com/news/articles/2026-01-07/blue-owl-bdc-allows-for-17-redemptions-as-investors-storm-exit](https://www.bloomberg.com/news/articles/2026-01-07/blue-owl-bdc-allows-for-17-redemptions-as-investors-storm-exit)
I did a few minutes looking into this one, mostly reading through the slide deck on their website. The topline numbers look pretty good,but this seems kind of like a black box company without really digging into regulatory filings. Also... I am highly skeptical of any fund (or BDC) that needs a 1.75% management fee.
Four fund portfolio was up 13%. Dividend portfolio earned me 11.7% yield but had some NAV decrease due to large number of BDC investments. Ended up 9% overall, but with overall beta of 0.7 was significantly less volatile compared with the market. Star of the show for me was the speculative growth and trading account, started this with $800k in February, ended up with $1.36m, a 70% increase give or take a few dollars. This holding and trading options on RKLB, SMCI, SOFI, RDDT, NVDA, SMCI, ASTS, HOOD amongst a few others that I sold puts on but was never assigned. In total my accounts were up almost $780k to $3.45m - almost 30% for the year.
How’s this working out for you? 😂 You are shorting one of the best BDCs! If you must short a BDC short OBDC.
Business development companies (BDCs) loan money to companes. The law that governs them requires them to pay out 90% of their earnings as dividends. If they don't they get a tax penalty. So the yields for BDC is in the range of 8% to 12%. ARCC and MAIN are two very good ones. Ther are 2 ETFs that invest only in BDCs , PBDC 9% yield actively managed expense ratio 0.75%. BIZD 11% passively managed BDC index fund expense ratio of 0.4%. Bot are good. But note SEC has a rule that apples to BDC that requires them to post an expense ratio of 13%. This 13% expense is snot real. It is the estimated expenses of the BDC stock these funds hold. But the EFTs never pay BDC expenses. The expenses I listed are the real expenses fro these funds. these ETF are great in any portfolio.
Because I do not like all the dross that is in an index fund. Pretty much also true for CEF's, BDC's, and REIT's. And I think I can do just as well if not better on my own.
You articulated really well my thoughts that I couldn't do in that they are pushing the engine to the max. On that basis I am staying partially invested (still significant) as they have many more tools at their disposal to fuel this rally there will be bumps on the way. They will save the market in case of major stress. Sounds distant but in 08 the system already broke but they saved it. This time around as well they will bail it. I will fully exit once a private credit BDC suspend redemption hits the headline
Article text: Business-development companies may experience a painful correction going forward, according to Joshua Easterly, co-chief executive of publicly traded specialty finance company Sixth Street Specialty Lending, referring to direct lenders to midmarket companies. “Our view is that the market woke up to the reality that the sector has been allocating capital based on a backward-looking view of higher yields back in an elevated interest-rate environment,” Easterly said during an earnings call with analysts Wednesday for Sixth Street Specialty Lending, an affiliate of alternative-asset manager Sixth Street. In the short term, Sixth Street Specialty Lending expects to see dividend cuts by peers across the industry as net investment income falls, he said. “Long term, we believe downward pressure on BDC stocks will constrain further capital raising,” Easterly added. Shares of major publicly traded BDCs such as Ares Capital and Blue Owl Capital fell roughly 8.7% and 15%, respectively, from Jan. 3 through Tuesday. New York-listed Morgan Stanley Direct Lending Fund has fallen over 19% since the start of this year. However, shares of Sixth Street BDC rose about 5% over the same period. Further exacerbating the situation confronting these specialty nonbank lenders is the oversupply of capital in the private-credit market, said Easterly, who is stepping down at the end of this year. Robert Stanley will serve as co-CEO through this year and take over the top job from Easterly next year. Over the past quarter, competition for finance opportunities remained elevated, fueled by a persistent oversupply of capital, and that led to historically tight spreads in the liquid credit markets, Easterly added. The spread represents the difference between the lender’s cost of capital and what a borrower has to pay for a loan. Spread tightening occurs when falling interest rates narrow the gap between rates charged by BDCs for new loans and their capital costs. “With broadly syndicated loan spreads reaching their lowest level since the great financial crisis, borrowers have been active in refinancing into public markets to capture lower funding costs,” Easterly said of market conditions in recent months. Muted merger-and-acquisition activity has also led to sustained spread compression across the private-credit markets, Easterly said. “Looking ahead, we do not foresee a broad-based recovery in M&A activity in the near term,” he added. “We expect spreads to remain tight as the supply of capital continues to outpace demand.” Easterly’s view contrasts with those voiced by other BDC leaders in third-quarter earnings calls such as Ares Capital, controlled by credit-focused Ares Management. The Ares BDC reviewed more potential deals in September than in any previous month in 2025, said CEO Kort Schnabel, who also serves as co-head of U.S. direct lending for Ares Management’s credit group. “New-issue transaction volumes are returning to a more normalized pace, driven by greater clarity on tariffs and the direction of short-term interest rates,” Schnabel said.
IGR PDI OMAH FSCO All pay between 12-16% dividends and are great buys in a variety of investments from reits to corporate bonds, Berkshire Hathaway, Apple and a great BDC
I'm short BDC's to the tits
If you are looking for Income.. you might consider 3 ETFs ..QQQI, BDC, PBDC Watch this video to get insight... https://youtu.be/8N3LBCj7znQ?si=TzSCiqlO5qE04nxL
I believe Forge Global is not an IPO allocation channel. It is a secondary marketplace mostly for accredited investors, and Forge itself is already public under FRGE. If you are accredited, learn the mechanics first like transferring restrictions, fees, settlement. If not, use indirect routes like public proxies or listed PE and BDC funds, and keep that sleeve small. If you are evaluating FRGE, you can also read the latest financials and unit economics before sizing anything.
weirdly, humans do not learn from historic events. this time is different, they always insist. the bubble is only a bubble if most investors believe it has room to run. until one day, something like the base trade becomes untenable, or perhaps a large BDC suddenly declares bankruptcy because their opaque BB- tranche was all smoke and mirrors... it can happen. as in Warren's last earnings call: not today and probably not tomorrow but at some point.
Apples & Oranges. mREIT's are doing the same stupid thing that was done in prior to 2008 by investing in portfolios of mortgage-backed securities and other real estate-related debt. BDC's are servicing companies. The concern I've been tracking is commercial real estate, and some BDC's have exposure there. You have to get into the detail of what the focus of a BDC is. Jamie Dimon's forecasting has been remarkably off for the past few years, and he can't figure out the remote workplace. He must have an incredibly talented leadership team to compensate for what he spouts off about.
IMO, I think there's a happy medium with income and I wouldn't rely on any one asset class. In terms of an extreme example, there's BDCs like QXSO where it IPO'd in 2003 at $15 and is now $1 and change. The stock doesn't outgrow the yield and it dividended itself into nearly 0'ing - it's a very high income BDC that hopefully nobody was reinvesting dividends into. At some point soon it will probably do a reverse split. Long-term performance is not great (or even good): https://www.morningstar.com/stocks/xnas/oxsq/trailing-returns I think you can probably put together a pretty nice income portfolio with a mix of various things: currently out of favor value dividend etfs, pipelines, reits, etc. I wouldn't rely on one asset class and wouldn't go too far into risky high yield. Something that's a sort of "happy medium" - maybe not high single digit % yield, but mid single digit % - is likely more sustainable imo and best case you get a good income stream plus some mild price appreciation.
i would keep the % small. remember BDC are loans a banks deemed to risky.
Not a recommendation necessarily but lately I was buying something like CNQ at a 10x p/e and a 5.5% yield. It's not exciting and it's not without risk, but it's just a well-run energy company. Or something like CME, which offers four quarterly dividends and then a variable annual cash sweep dividend (cash above a certain level is paid out as a dividend.) People get into mREITs or BDCs and in some cases (IMHO) there is the question of what do I really own? What does the loan book of an mREIT really look like? What does a BDC really own? Not saying all of them are bad but a fair amount of these feel to me vehicles to attract yield chasers (and then some mREITs are externally managed, so a fee goes to external management every year.) Again, maybe just me/just IMHO I'd rather a 4-5% yield of something straightforward than a high single digit yield of something that's often doesn't seem entirely transparent. The other issue is that so many of these things that offer high single digit % yields don't outgrow the dividend so the price just gradually erodes over time. Nothing wrong with wanting income at all, just IMO there's a sort of "happy medium" that's maybe not high single digit % yields, but is perhaps more sustainable, the risks are clearer and you get a blend of medium income and some growth.
If I wasn't WHEELing, I would buy big name BDCs and just compound off of dividends every year. Anyone worried about credit lending risk can just choose a BDC that focuses on first-lien like BXSL.
I’m only a couple of years from retirement, so building my income stream. I’m loading up on midstream, with the weakness driven by lower oil prices. EPD/ET are my favorites, and yielding between 7-8% BDC Armageddon - hard to predict the bottom, but best of breed in this sector is in sale with the riskier companies. I recently bought a decent position in KBDC. I like ARCC at current price, although hoping it goes lower and keeping some spare change REITS. Decent value, I’ve been adding ARE in the $70’s. I was adding Brookfield BIP/BEP, but now waiting for them to drop 5% or so. Growth is unaffordable. I have nibbled on AMZN. Have been opportunistically selling weekly covered calls on my position. Hoping NVDA disappoints on earning. That will open up a lot of opportunity, but a gamble. It could easily beat and raise. I certainly would not short GLTA
FWIW, I'm retired. So half my money is in CDs aka fixed income. Then 25% money market. But I read here about the YouTube channel Armchair Income. Long story short, he invests in Closed End Funds ,(CEF) and BDC paying at least 8% dividend yield. So I have 25% in CEFs and BDCs. He shares his portfolio . I just pick the ones I like to invest. i will get $20k this year just from that.
I have taken advice but do my research. When I first started out I didn't know what a BDC was and a reditor told me about ARCC. That led me to find a great YouTube channel and now I own two BDCs.
Is anyone else concerned of the ongoings in the BDC space?
The whole BDC sector has been getting popped this past month.
BDC (Business development corperations) loan money to business. They are required by law to pay out about 90% of their income. So these companes generally pay dividend yields of about 9%. Contrary to popular believe there are companies that pay yields in the 5 to 10% range. An stocks isn't the only investment there are government, and corperate bond, loan obligations credit, and covered call funds that pay yields up to 11% or more One of my favorite ETFs is QQQI it invests in nasdaq 100 and uses covered call to covert price volatility to income. It has a dividend yield of 13% and is tax efficient. And it retains some of the growth of the Nasdaq 100 index. So share price is up and it pays a 13% dividend.
MLP and BDC are down now. Both probably good long term holdings
Hold gold, bitcoin, and bond like stocks such as VZ. Also BDCs like MAIN or a BDC ETF like PBDC. These are not correlated to the equity market directly. On some red days I see all of these go up and vice versa. These will smooth out the volatility. Also hold corporate bond funds like JBBB or JAAA or even STRC which pays 10% and has stable nav.
Some BDC or REIT stocks
Not that answer applies to a passively manage index fund. They just follow a published index like the S&P500. So if a company goes bankrupt they are off the list and a new company is added. However not all funds are based on an index. And some are activelystock managed. Some fund managers just pick the companies or other assets He believes are good investments. If one goes bad they replace it with another one they like. Now these fund managers can change the mix of assets at any time.based on the funds stated objectives. Now the fund managers Have to spend time researching and analyzing assets and monitoring their portfolio which means there is more work passive or UTF. They invest in utility stock and any any corperate bonds they sell. Now the stated objective of these funds is to generate income for investors So share price appreciation is much lower than most index funds. But the dividend is about 6 times higher than a typical pasive index fund. And the assets they hod are very different. UTG pays a dividend yield of 6.3% while UTF 7%. OR take a look at BIZD or PBDC. Both hold a group of companes called Business Development Companies that by law are required to pay out about 90% of their earnings as dividends. BIZD is based on a BDC index and has an expense ratio of 0.4% and a dividend yield of about 11%. PBDC chooses the BDC's it invests in ands an expense ratio of o.75% and a yield of 9%. With noPBDC has a slightly higher total return. Note for BIZD and PBDC an obscure SEC rule requires they to list expenses they never pay so their listed expense Ratio is about 13%. But if you read the prospectus the real expenses are much lower and I listed the values from the prospectus.
So share price is determined by book value ( yes or REITs and maybe BDC's)? I thought a p/e ratio was important, I thought investor sentiment was important, I thought protected earnings was important. Guess not.
CTRE- senior care real estate has been making me a fortune. I am also expecting another dividend increase soon. ARCC- The biggest, best BDC in the business. Turn on the Drip and enjoy the ride. I also have a unicorn pick. These come around every once in a while and usually you can count the number of unicorns on one hand. The last unicorn pick turned out to be a ten-bagger Rolls Royce (RYCEY.).We got in at the $1-$2 range. Unicorns create life changing money. As of right now I found 1 unicorn out of 23,281 stocks. I won’t bury the lead. APA is an oil and gas play that has cash flow coming in the doors. Just as important nobody is talking about which is exactly where I like to be. I do suggest using a 25% trailing stop to protect your principal.
You can get equity like returns in credit (using structural leverage at the fund level) in BDC's and CEF's. Here are some websites that have that data to my awareness 1. Morningstar 2. [Latticetech.co](http://Latticetech.co) 3. [cefdata.com](http://cefdata.com)
Listen dumb fuck why are you doing your strawman shit to attack me about capital gain not being a loophole. Its your lettuce filled brain dyslexic, are you okay? When the fuck did I say that 🥺. Deductions and exclusions from which the majority of Americans benefit, unequally, are there. We're taking about. There’s several different ways. A very notable example was when Donald Trump used money from his foundation to buy a painting of himself that he hung in his office. Donald Trump donates a million dollars (or whatever it was) to the Donald Trump Foundation, which then uses that money to buy something that Donald Trump wanted. *Technically* Donald Trump doesn’t own the painting, his charity does, but what difference does it make? Billionaires will also donate money to charities that they own and control that have large endowments. The money in the endowment can be invested, and frequently is. Also money in that charity can be spent in all kinds of ways that could technically qualify as charity work, but aren’t really. Let’s say a billionaire has their own charity that’s really for environmental causes. Every time that billionaire flies to a tropical island on their private jet, they can charge it to the charity. They can claim they’re visiting the island on the charity’s behalf to see the local wildlife population. Also they’ll overvalue certain assets to give themselves a bigger charitable tax break. They donate a painting to be auctioned off at a charity. Who says what the actual worth of that painting is? All you need is an appraiser to say it could be worth $100 million and now you can write off that amount on your taxes. These are somewhat egregious examples, there are more ways to take advantage of the tax code. https://www.cambridge.org/core/journals/business-history-review/article/abs/founders-fortunes-and-philanthropy-a-history-of-the-us-charitablecontribution-deduction/F6328324C2B48D598786CC66BDC5B0BF This has clearly been introduced to benefits the upper class, not you. Technically you can still do it as a window licker like yourself that scrapes by but really? While Elon's pay package is designed with options in mind while he gets zero cash salary https://edition.cnn.com/2025/08/04/business/elon-musk-pay-package his company also manipulates it's taxes by offloaded profits offshore and declaring a loss in US divisions https://itep.org/tesla-reported-zero-federal-income-tax-in-2024/ while still getting government grants, contacts you still want to play devil's advocate that everyone shares equal mechanisms of paying taxes. Touch grass, you're one of those LLM Bots made in a lab with no conscious https://www.google.com/amp/s/www.nbcnews.com/news/amp/rcna203597
What? BDC’s are a VEHICLE type. It’s leveraged primary to give lower networth people access to alts (due to quirks on tax code) without triggering AI and QP rules. They can invest in a whole sleuth of things…private equity, private credit, and even real estate. Most big BDC’s are in private credit…which looks decent on pre-tax returns, but is the least tax efficient product on the market, and lags bonds if you’re at a high tax bracket & investing it in a non-tax advantaged account. Also nothing you listed is an an actual BDC.
Public REITS are Dead Money dividend yield TRAPS....Their NAV and share prices keep dropping due to constant dilution to raise cash, coupled with high interest rates, one may break even but collect a measly 5%-7% divided. BDC's are better plays for dividends, with a modest stock growth. CSWC, TRIN, SAR, MAIN **Good luck........;+)**
As a BDC investor, thanks god he didnt.
GPIQ and MAIN are solid. MAIN is a BDC that pays special dividends and keeps growing its NAV. GPIQ is super tax friendly and returns around 9 in yield but more like 13 plus in total returns. I won't be doing any more rentals. It's too illiquid, and the insurance and taxes costs go nowhere but up.
You’re right, but it’s much more nuanced than this. Sleeping giant is the capex spend from the Magnificent 7. IT infrastructure spending is acting like a stimulation package for the private sector. If the AI industry revenue doesn’t keep up with the capex boom, it’s going to get ugly because not only will shareholders lose money but the economy as a whole will suffer. A lot of the money is being loaned to these big tech companies from private credit and BDCs. If the capex spend goes bust, so will those private credit companies / BDC. Yikes. So, it’s really a bit of a tightrope walk. It’s all about if big tech can profit in line with capex.
OFS is a solid BDC that pays a 16% dividend but is being bullied by short sellers, at least some of which appear to be foreign. It’s very cheap, trades at a very low PE and is under the radar.
No, I don't do things like that. I contacted Schwab and they said if I go into their system and vote the calls will stop. They want me to vote on the decision to allow Ares to sell stock below NAV value if they need to. Guess a yearly thing. I also emailed Ares investor relations and nice person responded that they were glad I informed them of the frequency that D.F. King was calling me and would ask them to stop. Plus they said if I vote they would stop to but was apologetic. They confirmed the same reason for the calls. Funny enough after I voted, note I did block their number that day, still got an email from Schwab asking me to vote. Hopefully there is a delay between voting and taking you off the not voted list. Not sure if this is something with BDC. My FSK stock they are not calling but emailing me daily about voting as well.
any thoughts on fiber? Pondering BDC due to lower cap. Not sure who's best positioned to get the drone cable contracts. For all i know none of the big fiber makers even make the cable used in drones.
I'll get downvoted by all the sheep who just repeat what Gurus tell them but being overly diversified is just stupid. There becomes a certain point where you are investing in subpar companies to "protect yourself", when in reality all you are doing is lowering your returns. Let's say there are 50 companies you like. There will probably be 5-10 that stand out and are objectively a better value if you know how to actually dig into a company's financials and analyze it. Being in the 5-10 companies gives far better returns AND is safer because you are will be in better companies that also have higher earning potential. There is absolutely ZERO reason to be in the other 40-45 companies that aren't as good. Diversifying to protect yourself is good to do in terms of industry not company. For example being in 1 tech, 1 utilities, one REIT, one BDC, etc, provides the diversification you need to protect your assets in case one of those industries gets hit very hard. Picking the best company (at least according to your own individual analysis. If you don't know how to analyze a stock to a pretty decent level you should be in ETFs only anyways) is the way to maximize earnings, and the industry is what needs to be diversified to protect your assets from random events that can pop up.
O pays a monthly dividend and has increased for like 25 plus years, ARCC is pretty much the top BDC company out there and pays like $0.48 dividend like 8% , and SCHD is like the top dividend growth ETF if your wanting dividends look at these, cuz I did like quick math for SELF and to hold 100 shares is going to cost like $536 with a $0.073 dividend so it pays about $7 a quarter you’ll get maybe 4/5 shares extra per year but $536 into ARCC @ $22.50 is about 23.7 shares with a $0.48 divided that’s $11.37 per quarter and in O for the same price you’ll get 9.4 shares that pay a monthly dividend of $0.269 so about $2.42 x 12=$29.05 but it’s a top REIT you may want to look into them but SELF doesn’t seem bad for like extra cash maybe also look in NAT
57M. Around 50% in dividend holdings (BDC, CEF, CLO, MLP, REIT, CC funds). 20% in four fund ETF portfolio. 30% in concentrated growth stocks on which I trade options; CSPs, CCs spreads. As I get closer to retirement in a couple of years, I'm adding more to the dividend portfolio with the aim to be around 60/20/20.
I didn't see the yield of T-bills attractive especially since they were likely going to trend down. So I instead piracies a preferred stock ETF with 6% yield and then purchases a BDC fund yielding 9%. I now have about 5 funds with yield near 10% or a little higher, PBDC 9% EIC 10%, SPYI 11%, ARDC 12%, QQQI 13%. And I hav several funds yielding about 7%
About 85% of my portfolio is dedicated to selling CC’s and CSP’s. The other 15% of my portfolio is in high dividend paying CEF’s, BDC’s, and mReits that don’t trade options or premiums are nothing. I have already made 40k in closed options and have 19.8k in open options expiring this year. And we are only in July. I’ve been selling options for 5 years and I wish I would have discovered selling options 20 years ago.
Buy what you like and don't be afraid to make changes. I like Verizon and it has a high dividend yield so it was my first stock purchase. Next was ARCC which is a solid BDC. The largest in the US with a high yield. I agree if you aren't having fun you are not doing it right.
Got some REITs and BDC’s during Q3/Q4 and i have a loss on them due to the dropped dollar, even though the share price is up.
For Starters the equity market is the the stock market some stocks pay dividends and other do not. Would BANK not outperform XEQT assuming both are using DRIP? Yes it can however there are two things that result in growth dividends, and an increases in share price. Total return is dividends +share price appreciation Now for much of the stock markets history the the best way to get a good total return was to literally invest in everything. So the best investments were index funds that buy all the stocks in an index like the S&P500. it you have 500 stocks you get he average performance of 500 stocks which is about an average of 11% total return. Howeer the market has been changing slowly over time. dividend for many companies are smal which made dividend less attractive due to ther lower total return. But over time new assets have come on the market. 40 years ago there was no options trading. Business development cooperations or llon obligations. These are now available to the avers investor through ETF (exchange traded funds or Close end funds. And these trade on the stock market. And many of these fund or BDC actually pay dividends to be high enough to have a total return of competitive with index funds. Many inv esters don't realize this has happened. For example ARCC is a BDC that started doing business about 20 years ago It has a a9% dividend and not much capital gains. Since its founding it has performed slightly better than the S&P500 market IF all the market corrections (2008 market crash, Covid, and this years correction had not happened the S&P500 would likely be ahead. The only way index funds can stay ahead of ARC is by a sustained continuous Bull market. But that had not occurred in the entire history of the market. And in the last 10 years there have been a number of new covered call funds, these funds use an option known as covered calls to generate income. with these funds you can get yield o 5% or more. There are a couple near 100% dividend yield. then there is OXLC a collateral loan obligations fund that is yielding about 25% Now my personal opinion is that anything with a dividned of 20% may not last form many decades but if you restrict yourself to funds with a dividend of 15% or less you should have a dividend portfolio competitive with growth index fundsAnd since dividend funds tend to do better in bear markets verses bull market i would devote 50% of a regiment portfolio to dividends and the rest growth index funds.