BIZD - What I Wish I Knew Before Investing In BDCs
2024-05-16 08:30:00 ET
Summary
- Business development companies are popular income instruments with high dividend yields and perceived stability.
- However, there are some important lessons that I did not learn until after I had already been investing in BDCs for a while.
- I share three of the most important ones in this article that may help you avoid major disappointments when investing in BDCs.
Business development companies (BDCs) ( BIZD ) are popular as income instruments due to their very high, often double-digit dividend yields. Moreover, their stock prices are often closely tied to their net asset value (NAV), which is closely tied to investment portfolios that primarily consist of privately held companies. As a result, at least in the short term, BDCs often give off a sense of stability while also paying out lucrative dividends....
What I Wish I Knew Before Investing In BDCs