MRCCL - Growing Dividends During A Pandemic: Oaktree

• When the pandemic hit last year this higher yield sector took a huge pricing hit with dividend yields soaring to 30% to 40%.
• The average dividend yield among Business Development Companies ("BDCs") was around 20% for most of March 2020.
• I was actively making purchases during this volatility as I have identified the BDCs that will outperform during an economic downturn.
• Clearly, the market was expecting dividend cuts that never came for most higher-quality BDCs and some have recently been increasing regular distributions and/or paying supplemental dividends.
• BDCs are still yielding 10% but that will likely come down as investors realize the strength and resilience of this sector to outperform during economic challenges.

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