MAIN - The Secret Sauce Of The Best-Performing BDCs

2024-05-21 07:05:00 ET

Summary

• While the broader BDC sector has materially underperformed the S&P 500 over time, there are a handful of BDCs whose total returns have left the S&P 500 in the dust.
• We examine the secret sauces that have enabled them to generate such impressive long-term outperformance and strong dividend growth.
• We also discuss which of them is the best buy today.

The two best publicly traded business development companies based on long-term total return performance are Capital Southwest ( CSWC ) and Main Street Capital ( MAIN ). As you can see in the chart below, they have both generated enormous long-term total returns that completely leave the S&P 500 ( SPY ) and the broader BDC sector ( BIZD ) in the dust....

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