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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
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.
There could be lots of reasons - you are going to have to research yourself. But some reasons could be a convertible arbitrage opportunity - I think GAIN is BDC so maybe there are convertibles out there. GAIN also as a BDC - are they over exposed to interest rate risk? Perhaps their dividend is at risk because of bad investments. Check their Net Investment Income trends. BDC's are analyzed for valuation differently than a product/service company so you have to take that into account as well.
Probably my favorite BDC, but they're definitely not risk-free, or even low risk.
Yes. There are two Government of Canada programs covering 25% and 10%, and the provincial government of Nova Scotia is covering 25%. The company still needs to raise the 40% to unlock those funds, and there are several options they have from the federal BDC (Business Development Bank of Canada), CSA (Canadian Space Agency), CIF (Canadian Infrastructure Fund), various space venture capital funds like Seraphim Space Trust $SSIT.LSE or some combination of those. It won't be an equity raise. The company still needs general operational expenses funded but the three VC funds that did the seed round seem to be taking care of that.
I own both. Main is a BDC while O is a REIT. Different things.
Like most things in life, it depends :D Everybody's favorite ETF is SCHD. their yield is tame at 3.94%, but their total return is a whole lot better. You get a steady income and do not forego growth. On energy I have HESM, sporting a 7.31% yield. Midstream energy companies can suffer during recessions but the long term demand for all sorts of energy is strong. One I have a ton of faith on is VICI, 5.39% yield,. It is a Real Estate Investment Trust that specializes in casinos. As a matter of fact they are probably the only REIT that collected 100% rents during Covid. Who would have thought casinos had so much money... They are expanding their market (number of properties under management) so there is room for capital growth. O is another solid REIT that has been paying and raising dividends for 27 years straight (5.73%). That includes both the dot-com and the housing crisis. The BDC sector is heading towards turbulence with both high interest and maybe a recession, but their high yields are worth the risk. I own MAIN, CSWC, and HTGC. I got out of CUBE (storage units REIT) but their 4.76% yield is solid. GUT is a closed end fund meant to generate income. They have pretty much 0 growth since inception 25 years ago, but they have been paying north of 10% yield for those 25 years. Their NAV premium has always been ugly but they have always delivered. Honestly I expect a 20% yield cut anytime and that would still have them yielding 9.4%, which would not be the worst thing in the world. I have others but that should give you some stuff to research.
How can I really have this many swings and misses? Obvious answer you are not good cat evaluating the stocks you invest in. Less obviousis is that you are only investing for captial gains. and very little deversification in your investments. investing in index funds isn't going to help much because you are still investing for captial cains. Have you ever thought about investing for dividneds using ETF orCEF. Dividend funds typically are professionally managed to identify the good and the bad an invest in many stocks. Alos if you reinvest the dividend your money will grow even if the stock price doesn't move. So you don't have to worry about shar price as much. How long a stock needs to double in value is determined by the law of 72. so you take 72 and divided by the yield7.2. So for a fund with a yield of 10%. your money would double in 7.2 years. For exaple ARCC, a BDC. This stock and its shares price has been constantly around 20 dollar with major drops in 2008(The bank crisis) and 2020 (Covid) 52 week high and low is 23.8 and 18.3So other than the market crashes the price is stable. So not much capital gains. However ARCC pays a yield of 9% and they have payed quarterly for about 20 years. Sao if you just bought it and held it for 8 yours you would have doubled your money. Which means they parted the dividend through each market crash. Yield does very a little bit nut not a lot. I have this stock but I am not buying any more. Why it is only one stock. Instead I am buying PBDC that invest in the Best BDCs it can find. It has about 20 BDCs in its holding and pays a yield of 9% this speads out the risk over 20 stocks so it one goes bad you might not notice. I also Have SPYI 11% it invests in the S&P500 and writes covered calls..to convert market volatility. into dividnends. The target yield is 11% but can very a bit. 9% to 13% yields are normal. I now make 1000 a month off of my investment in that und. I have no interest in seeing my dividend stockSs or funds. Yes the protfolio value dropped a lot during covid and dropped some since aapril. But I am making 50K a year of income from dividends. So that is not enough to encurage me to [sell.So](http://sell.So) I will hold them for as long as possible. I will only sell if there is really bad new related to one fund or stock
I've got a similar situation. HYSA is good but want more return. I'm buying into some high yield BDC stocks. It beats 4 percent.
I put 200k into the markets just before the drop I had about 200k in cash I saved through lots of blood sweat and tears sitting in my high yield savings account for few years as I thought I’ll be buying a house. After a long search, Ended up not buying now so after the cash sitting on the sidelines for 3ish years I finally decided to invest literally a month before the big drop. I bought direct S&P500 stocks, some index dividend income ETFs, BDC and REIT ETFs crypto: bitcoin and solana. I’m down anything between 10 to 35%. Only bitcoin is up. Literally if I just waited another month this could have been a perfect “buy the dip” opportunity. I know timing the markets is impossible / should have DCA’d in probably.. but this has been really dumb and frustrating. Now my dream of buying a house/land somewhere is locked in the markets until it recovers which seems unlikely with the amount of nonsense this administration is doing daily (tariffs, lack of clarity on anything, now talks about firing J. Powell and the declining dollar index, tomorrow who knows) We’re not heading to recovery we’re headed towards more instability and potentially a recession / crumbling of the dollar as a reserve currency. Should I cut my losses and take money out? I do want to buy a place. Probably not in the US anymore. Need some encouragement and ideas Thanks for listening
I’ll die on the hill that Althair is good for anything 50 and under. However BDC it is
That's a good way to see it. If Republicans are voted get out and invest in EU instead. Sadly the EU has no BDC equivalents....
Well...the BDC companies imo...I used to hold lots of them, luckily moved out just before the fiasco, because I had to fund home renovation. The BDC companies provide high interest first lien loans to companies that are considered too risky by the banks....those usually small to medium companies with less than ideal balance sheets and high interest loans will be the first to be wiped out. I think the entire BDC industry will be wiped out. We don't have such industry in the EU.
I suppose industrial REITs as well, a really high quality BDC (now that base rates might remain high and the credit spread tightening phenomenon might slow), local food producers (lots of America’s produce comes from Mexico and Canada’s Okanagan Valley), etc
Looking at futures, looks like "Palmer Square Capital BDC," a Kansas based investment company that deals in corporate debt, has hit the stop loss in pre-market trading of -60%, it has lost 3/5 of its value. Wondering what this says about corporate debt and possible knock on effects, someone with more knowledge might be able to elucidate. Can't find much information about their collapse.
You best bet is a dividned fund or stock that returns about 10% yield. At a 10 % yield the dividned cash payments will equal the purchase price of the fund or stock you purchased. So you are guarantied to get about all of you initial investment back from dividneds alone.after 10years. If the stare price goes up you will acan add captial gains fto your dividend income.I This assumes you don't reinvest the dividneds. If you reinvest the dividends the time needed is deterred by the rule of 72. If you reinvest the dividends the time needed to recover your initial investment with a yield of 10% is is 7.2 years. With S&P500 index fund or other similar index funds with about a 1% yield you would have to hold the fund for 100 yiears to get you money back from the dividneds. While the dividend income is very stable and predictable the share price is not. In a market crash is is not unusual to see share by 10% to 30% and yet most companes concubine to pay the dividned. What finds off reasonably stable yield yield dividends BIZD 10% and /PBDC9%. These two fund invest is a group of buisness development companes. (BDC). BDCs loan money to businesses. And they are required by law to return 90% of their earnings as dividneds. So most BDCs have high yields. Both of these funds are actively managed and picked the what they believe are the best BDCs to invest in. General consensus is PBDC does a better job of picking the BDCs it invests in. The dividned s from BDCs are always unqualified and are taxed as income. Now these funds are required by SEC law are required to add BDCs expenses to the funds expenses. So any tax or fees a BDC pays to run itsits buisnesee must be added to the ETFs expense. The ETF never pays the the BDC expense. So officially PBDC posts an expense of 13%. But is your read teh prospectus that and exclude the BDC expenses the ETFs expense is 0.75% Which is about in line with an actively managed ETF. Another option are covered call funds. These funds use a trading strategy know as covered calls to to changes in share price into divined. income. In my opinion some of the best ones for a 10 year investment are JEPQ 10%, SPYI 11%, and QQQI 13%. JEPQ and QQI hold the NASDAC 100 index stocks. while SPYI hold the SP500 stocks. ?EPQ produces unqualified dividneds while SPYI and QQQI take steps to reduce the tax you pay on the dividends. There are other covered call funds that have higher yields of 20% or more. But NAV erosion is a significant issues with these funds and instead of holding stock they write covers calls on the hold cash or cash equivalents instead. So these fund also have significantly less retention of capital gain. in the stock price. .
I would get some BDC’s in the mix as well, for diversification
The anulaied rate of return for gold is about 5%. 100 years ago it you want to you could go to the bank and give them 1n dollar and they would give you an equal ammount of gold. You cannot do that today more than 2 generations ago all currencies were pegged to the price of gold. That is not the case today. Gold is partially a Meme investment due to the pass gold standard of currecy. There are better investments today than gold. PBDC an ETF of companes that called BDC that has a yield of 9%. SPYI has a yeild of 11% and QQI 13%. Thee high dividends are CASH to you. not an increase in share price as you would get with piece of gold.
Looking at the data, the US stock market, especially tech and small caps, have to fall further. BUT the US stock market has the ability to completely ignore facts, which could mean that it recovers and then comes down later. And Trump is so erratic that I wouldn't rule out that he does a 180 on his current course. But all in all, I am bearish on US stocks. The DAX has to cool off first. I expect it to come down slightly in the next months before rising again. However, I have access to the research if the DZ Bank and they changed their projections to 24.000 points in June and 26.000 points end of the year. Before they were at 19.500 June and 21.500 end of the year. After the 'Sondervermögen' in Germany, they changed it. Nevertheless, the best chances right now are found in German and European small caps. Look at the charts of the SDAX or für ETFs for the European small caps. They are still far below their 2021 highs, in contracts to the S&P, NASDAQ or DAX which are all far above these 2021 highs. I like your allocation (especially the put on Apple, it's a rare sight). But I think I wouldn't allocate much money on bonds right now. Both in the US and Europe (especially Germany) current developments are currently indicating higher for longer interest rates. This could hinder long-dated bonds from gaining in price. But it depends on how and in which bonds you invest. I think a good way right now, besides European and German small caps, is a dividend and credit approach. Dividends from good companies will even flow in times of stagflation. BDC's (business development companies) are generating money through credits and are paying high dividends. They are positive for the year. They only suffer if there is a deep recession. Not 100% safe though. I like ARCC and CSWC, but there are also ETFs for BDCs specifically. I would definitely not invest in stocks that are dependent on the consumer and make most of their revenue in the US. The US consumer is cracking down like crazy right now. Sorry for typos and grammar. I am not native in English and am in a hurry right now
Been long a couple BDC's since inflation spiked. Has worked out pretty well for me / doubled my money in about three years. Inflation stays high due to tariffs? Interest rates stay high and I keep clipping my 14% dividend yield.
CION is a BDC with 12.5% paid out quarterly. It's been around a few years with NAV remaining relatively stable. Putting 500k into it could bring in \~60k/yr. The money invested in it may not grow much, but it provides steady income. Or SCHD... it's 3.6% paid monthly, but it's been around almost 15 years and has shown steady NAV growth. 500k in that would bring in \~18k/yr. Money invested in here, the value will likely grow over the long term... but doesn't pay out nearly as much when it comes to dividend income. or split the 500k and do half and half to bring in \~40k/yr. The 250k in SCHD will grow, and the 250k in CION will more or less remain flat.
ARCC is a BDC (Business development cooperation) with a yield of 9%. PBDC invest only in the best BDCs about 20 and have a yield of 9% and more deversification. the just one BDC.
Maybe consider some in a BDC like PBDC, some in a covered call strategy ETF and the rest in a dividend focused fund like SCHD
Dividends are very helpful in bull market. When the share price is down you still willl get dividends. S&P500 funds have a long term average growth of about 10% So to get similar performance from dividneds you need a fund with a dividend as close as possible or higher than 10. SCHD has some good growth attributes but its dividned is very small, 3.5%. Some good options are: * KNG 9% yield, JEPI 7%, JEPQ10. These are covered call funds that use adding activities to convert share price swings (up and down) to income. So the long term growth is less than the index they follow but they have a high resonably stable dividned. There are covered call funds that produce higher yields 20% or more but they often have problems with NAV erosion and there are concerns about their long tern durability. I am not aware of any covered call fund that has failed. The covered call stratagy is about 40 years old and it is widely used. Only recently have covered call ETF become available.An old one DIVO has a field of 5%. All of these funds produce regular dividends which are taxed at the higher income rate. * SPYI 11% yield and QQQI 13% are some of the newest covered call funds but with a twist. They incoperagte tax loss harvesting to reduce teh tax you pay on the dividneds. Thee can be used in a taxable or retirement account. * BIZD 10% yield, PBDC 9%. These funds only invest in Business Development Corperatations These companes are required by law to return most of their invoke to sharholds as dividneds. So the dividneds are higher. Now these funds are currently required by law to to report teh funds expenses plus any expenses the BDCs they hold insure. However any expense incurred by the BDC is payed by the BDC not the ETF.IF you exclude this SEC requriement the expense for the fund drops form 13% too 0.75. These companes have a history of paying dividends in a bear market sucks h as the lost Decade of 2000 to 2010 when growth funds dividned have much growth.These funds all produce regular dividends. Just a note on taxes. Don't let teh fear of taxes dictate your investment choices. The tax on dividends is often less than people expect. Calculate the estimated tax impact before you invest. For my self I have determined that 100K of regular dividends in a taxable account with no work income would result in a tax of about 10K a year. leaving 90k of spending money. So 500K in a taxa le account with one or more of the above funds would make a great retiement i ncome fund or an emergency fund.
I sold at BDC
Yeah... That's my basic understanding as well. But all complications create opportunities - ¯\\\_(ツ)\_/¯ - there are some new fund products because the tax treaty between US and Ireland is different. So ICAVs could be a possible solution - KPMG primer here - [https://assets.kpmg.com/content/dam/kpmg/pdf/2016/01/fs-the-icav-what-you-need-to-know.pdf](https://assets.kpmg.com/content/dam/kpmg/pdf/2016/01/fs-the-icav-what-you-need-to-know.pdf) A ICAV is kinda like how a BDC or MLP is structured in the US from what I understand.
I sold large growth the last week, moved positions toward contracts into debt. Aka: I loanded my money to others for a contracted price or yield. Thus its mostly in the form of etf funds that hold debt bonds for corps, but in laddered yields. Additionally, CLO and MBS, where others are selling debt risk which are all diversified over 100 to 1000 contracts, one even has 3200; as well as BDC, for lending to others and riding higher for longer rate trends. High I still DCA into small/mid cap growth as less then 20% portfolio. These are actually closer to gambling longer term. But mid cap that pay dividends or are all time low sp500 companies. Increased allocation into dividend real estate that benefit from cash flow and future growth as interest rates are lowered from recessionary pressures. Forced lowered rates. Included are monthly users of retail, residential, and leases; people will need somewhere to live or gov will step in to help pay rents like during covid. Bought short bond ladders I will hold till expry. Sold ATH sp500 value stocks that are now fairly valued and beefed up emergency savings for a 1 year stop gap. Growth wise I bought mining, clean energy since gov focus on mining and energy creation. The real estate holds high amounts of land and buildings for use for energy and data storage. Also home builders or financiers , since shortage for next 10 years growth with shortages and because they fell back to bear territory the past 3 months, and cause Fannie and freddie might get soun out and rates go up meaning the fanciers get paid more, but if the rates trend down builders do better its a bit of a straddle. Commercial I started positions because the lowest point since GFc great growth opp. Also since depressingly trends started positions into weed and booze since most are back close to covid levels. Also bios I picked up growth in pet med and pep meds since all time lows and future illnesses possible because of stress and fatigue, but also future hopefulness in creating new med and services.
ARCC which is a high dividend yield BDC, a high dividend utilities closed end fund (UTG) and COKE
Could add closed-end funds, BDC funds, and CLO funds to your higher yield category.
I'm retired, so I want to avoid a significant drawdown. I like a "managed futures" holding, CTA. I hold CLO ETFs, such as JAAA and CLOZ (there are plenty of others). Also, I like BDCs. I keep a basket of BDC holdings, anchored by MAIN. I consider SPHQ and FDVV as my "core" holdings. I'm building those as I exit individual equities. Basically, I've trimmed my "fun money". I'll continue to use the "fun money" without regard to possible recession, stagflation, and/or bear market.
diiviedned funds are great place to put money when you are worried about the market. You know about REITs and I completely with your opinion on then now. They were better in the past. REITs are required to return most of their profit to investors. So the Yield is typically higher than most other dividned funds. BDCs (Business Development cocmpanies) loan money to and sometimes invest in smaller companies. qqq They are also required to return most of their profit to investors. They frequently pay around 9%. BIZD and PBDC are two ETFs that invest in these companies. Now they are also required to list their expenses as well as the expenses the BDC insure. However in practice the BDCs pay those expenses not the ETFs. So these funds list total expenses of about 12 to 13%. The ETF only expense is less than 1%. BDC however do only produce unqualified dividends. These are a very good option. Also in the last 10 years Covered call ETFS have appeared. These use a trading activity called covered calls to gernate income. From 5 to about 13% there are a lot of good ETFs to choose from. Above that you start to get into the wild west of CC ETFs. Some generate 20 to 30% dividneds. but there can be considerable variability in the payout and NAV erosion is often visible in the share price. My favorite right now are DIVO 5%, JEPI 7%, KNG 9%, JEPQ 10% and SPYI 11% and QQQI 13%. I currently only own JEPQ and SPYI. These generally produce mainly unqualified dividends with some qualified dividends some like SPYI and QQQI also take advantage of tax loss harvesting (when possible) to help lower your tax.
Some conservative investments: You might consider a "managed futures" ETF. I have a position in CTA and I am quite pleased with it. I like BDCs. I have a basket of BDC holdings. The ETF PBDC is an easy way to take a BDC position. CLO ETFs also work for me. I like CLOZ and JAAA, I have much more in CLOZ than JAAA. Regarding individual equities, I'm pleased with LRN. I think it's a pretty conservative holding. UBER has a strong outlook. I bought in completely below $80 though. AMZN and TSMC have already been mentioned.
Look at VZ, BHP, RIO, and BDC’s : GLAD ( mo pay ), OBDC and GBDC. These should suffice for your purposes.
Don’t. Whatever’s in the other side ain’t what’s advertised. Besides, 90 ain’t that much. I lost 100 to two fxcking Scientology punters cloaked in a BDC called GPB. You’ve learned a lot, don’t waste it.
For BDC I would invest in an ETF like BIZD or PBDC which only invest in BDCs. So you aren't investing in one or two but many which should reduce risk.
Relistate (Reits are required by law to return most of their earnings through the dividend. So the wild is higher. BDCs (Business Developers companies) loan or invest ing developing companies. They also are require3d to return most of their earning through dividends. PBDC is an ETF that invests only in BDCs and has a 9% yeil. you could invest in the ETF or you could buy individual stocks of the companies that invest in. BIZD is a similar ETF but pays a slightly higher dividned. Note the SEC requires BDC fund list their expenses plus the expense the BDCs may incur. Typically expenses the BDC incurs are handed by the company and not passed onto the fund. As result of this PBDC list its total expenses at about 13%. But if you exclude ether BDC incurred expenses the funds expense are 0.75%. all the issues int With all the issues in teh realistic isalistate today bdcs might be a better choice. I have gotten good result with ARCC and recently added PBDC to my right.
I am retired and I am about 50% equities (40% S&P500 10% dividend paying stocks) and 50% income producers which is mostly bond funds (Treasury and corporate) and some treasuries from treasury direct but also some MLP's BDC's and covered call stock funds.
First, I use of tighter take-profit limits. My first goal is not to lose money in 2025. I am holding bond ETFs, preferred shares, split income corps and started with long/short ETFs. Kept a little reserve in money market ETFs. Selling covered calls on individual stocks and keep income ETFs for a sideways market, which I think is most likely (< +/-10%ish). Some investments in high yield BDC sphere and alternative funds. Small allocation to gold income ETFs. Haven't bought LEAP puts yet but it's on my radar. I've done shorting in the past but I think options are better. I want to diversify more ex-North America, waiting for an entry point with a dividend ETF. Santa Rallye isn't the best time for that.
“between 40,000 and 50,000 new meme coins are created, according to BDC, an Estonia-based blockchain consultancy. Nearly 13 million have already been created in 2024.” Yep lots and lots. So i would say pretty bullish that kendu just became the second to do the audit when the market is so saturated
The top holding of this fund is ARCC which I invested in about 2 years ago. This companies has been paying a 9% dividend for about 20 years. The company started doing business about 25 years ago. I added PBDC to my portfolio recently. abouta mot BDC and REIT are required by law to return most of their earnings as dividend. I believe is is just as safe as I think it is a good investment.
PSEC is a bottom of the barrel BDC. It often trades at the largest discount to NAV in the industry because everyone knows they keep their NAV propped up to keep management fees high. The management company that PSEC pays unusually high fees to is run by PSEC’s CEO and president. It’s a clear conflict of interest. So while John Barry takes no salary from PSEC, he ensures the big fees keep rolling into his management company. By buying more shares, Barry is able to fend off any other shareholders that would vote to move to a different management company. PSEC is permanent capital that exists to generate fees for Barry. PSEC usually has the highest yielding investment grade bonds as the market recognizes the risk. PSEC has shifted to flooding the market with preferred stock. Preferred stock dividends will remain fixed while common shareholders have rights to the remaining cash flow. Unsurprisingly PSEC recently reduced the dividend to shareholders by 25%. PSEC makes loans to businesses. An unusually high % of those loans are PIK (payment in kind). The companies PSEC lends money to don’t have enough cash to pay them. Eventually, something like PGX happens where the company goes bankrupt and now PSEC takes over a loser of a business. If you want to own a BDC, own a quality company like MAIN, HTGC, or BXSL.
Prospect Capital Corporation (PSEC) is a publicly-traded business development company (BDC) that invests in and lends to private businesses in the United States and Canada: * **Investments**PSEC invests in middle market companies across a range of industries, including manufacturing, energy, healthcare, and financial services. PSEC's investments include debt and equity, and are intended to generate income and capital appreciation. * **Financing**PSEC provides financing for acquisitions, leveraged buyouts, refinancing, capital expenditures, and more. * **Benefits to investees**BDCs like PSEC provide benefits to their investees, such as managerial assistance, an alternative source of capital, and public disclosure.
This is a common problem especially for low earner and those investing in index funds. Most of the growth in a portfolio does not come from capital gains. I comes by reinvesting the dividends. S&P index funds have great capital gains in good years but the dividend is only 1.3%. 75% of long term earning S&P index funds comes from Dividend reinvestment. u25% comes from capital gans the reason for this is that capital gains is not real money until you well. So capital gains doesn't nicer the number of shares you own. Dividend on the other had are is real money that is deposited monthly or quarterly into your retirement account. And The Dividend does buy additional shares. So If you have 100,000 in a Roth account and are investing $7000 a year a S&Pindex fund will only add $ 1,300.per year. So your total investment per year is $8,300 However if you switch to a dividen d fund earning 7% your total .yearly investment is $14,000. The fund is now growing twice as fast. I would recomnebnt Switching to a high dividend fund as soon as you can. With covered call funds you can easily get 10% yield. The two I would recumbent are FEPI (&%) and JEPQ (10%) Or you could invetin Business Development Corporation's (BDCs) that typically have a yield of about 9% Two funds that only invest in BDC are BIZD and PBDC. And there are numerous other funds in the 4 to 7% range. All of whichwhould exceed the dividend from the most common used index funds. Now at which high yields you likely wouldn't get much capital gains. But after your account get over 200K you can start adding small amounts of goth funds, and deversify your dividend income stream.
I have 2 mil in market 4 funds and a mil in 44 income/dividend stocks (REIT, BDC, Prefereds and CEFs). I’m living off $120,000 income. I SWAN
Do you mean give ownership to the companies they’re invested in, ie their portfolio companies? If so, not really. The closest equivalent that I can think of would be Berkshire Hathaway, or a publicly listed Business Development Company (BDC). My understanding is that BDCs are basically publicly listed private equity funds that are much more regulated than standard PEs.
the primary attraction of REITs is the high dividend inc one. This can be used to provide living income or be used to proving more money depoists into a retirement fund. The High dividend is due to a tax law. REITS are required to return most of their income as dividends. This tax law also effects other business, notably Business Development Corporation's (BDCs). REITs are being impacted by the Covid. Many businesses closeted their offices and had people work from home. There are still a lot of empty office buildings. Which is lowering the performance of REITs. The high inflation rate is also impacting REITs BDC loan money to smaller companies that are growing. COVID has had minimal impact on these companies. I have ARCC stock which has a dividend d of 9%. And it has been paying a high yield for about 20 years. There are also ETFs that invest in BFDC (BIZD and PBDC).
It sounds like you're mostly concerned with income, so you should look into the income ETFs like JEPI/JEPQ , some BDC companies like ARCC, and maybe some REITs.
> The PBDC, Bizd, Arcc, EPD are BDC not the BND. SPLG is an ETF, see link below Yes, I understand that, but I don't understand how they're relevant to the conversation or why you would even look at a fund with a 13% expense ratio. >VTI have over 2,000 companies vs SPLG have 499 companies, see link below https://www.etfcentral.com/compare-etfs/SPLG-vs-VTI >VOO compare to SPLG have 500 companies, see link below https://www.etfcentral.com/compare-etfs/SPLG-vs-VOO Yes VOO is the direct comparison to SPLG, but it's still an index fund. Further, it the difference between VTI and VOO or SPLG is largely irrelevant because it's market cap weighted. VTI is more diversified, but VOO and VTI will largely track together with only minor differences due to the performance of small cap.
The PBDC, Bizd, Arcc, EPD are BDC not the BND. SPLG is an ETF, see link below [https://www.ssga.com/us/en/intermediary/etfs/spdr-portfolio-sp-500-etf-splg](https://www.ssga.com/us/en/intermediary/etfs/spdr-portfolio-sp-500-etf-splg)
700 a month is $8400 a year. If you decided that by the yield of an investment you can calculate the money needed.. So you will need a high yield. So if we assume a 10% yield (about the highest you can go without getting extremely risky) 8400 / 0.1= $84,000 deposit. JEPQ and SDIV are two ETFs with that yield and there are a lot REIT and BDC EFTS that have about a 10% yield. Since you only have 20,000 now you could invest in this way and have the dividends automatically reinvested. After about 15 years it will have reached the 84000 target. At the time you could stop the dividend reinvestment to get the cash. If you factor in inflation you should target 100K. And after the initial deposit add as much additional money as you can afford to reach your passive income goal. It is definitely possible to live off of passive income but it does take time to get there. I am currently at 4K a month. Another note I doubt your monthly expenses are $700. Your living expenses should include housing cost, food cost, utility costs, and medical insurance cost (unless your employer provides insurance), gas car cost and car insurance, and Taxes. Add all that up and most people would be at or above 24,000 a year.
Most traders who report may be day traders or are trading on margin or high risk stocks. I don’t day trade and barely use margin. And some people report things that aren’t exactly true. 3% per month is a bit extreme and probably doesn’t hold for 12 months. Right now with the market way up a lot of stocks are overbought. Selling Put option premiums at 5% to 10% OTM have also dropped. Call options are doing better. I do what I do and wins and losses are calculated differently for every person you meet. I consider it a win if I make money. And 99% of my option premiums are green. A few in the red due to roll outs but not much. As for a stocks price at the time any Put or Call is exercised I pay little to no attention if i would have won paper money. I currently have just over 180 options contracts open. 62 contracts expired or were executed (15 were executed) on Friday. On Monday those options will be open options again as I resell them which will put me well over 200 options contracts. Most of my options are on companies whose stock prices are below $75. I do have some that are north of that but most are in the $7 to $20 range. My portfolio value is much more than 350k but I am heavily invested in high dividend BDC, mreits, Pimco funds and others that I collect dividends on and most don’t trade options. Some do but it’s not worth the premiums received. I’d say I’m between 300k and 350k exposure every month in options. Right now I have made over $32,000 in realized premiums this year so I’m averaging actually over $3500/month. By the end of the year I expect to be hit between 40k to 45k depending on options premiums for the last 3 months of this year. Two years ago I took a chunk on money out of my option BP and bought a beach front condo. So I’m now rebuilding my BP again. Without writing a book I hope this helps answer your questions.