Business Development Corporations (BDCs) could be good investments
By Hicbd
Tue Sep 19 2023 1:37 pm
"BDCs typically raise money from public stock investors that they then lend to small, often private, companies...The fat yields on BDCs come with a catch: Unlike a standard fixed-pay bond, the payouts aren’t set in stone. What the shareholder actually receives depends on what the BDC earns from its investments. BDCs could end up paying dividends that are smaller—or larger—than projected. They are also typically taxed at a higher rate than most dividends paid out by corporations. Among the risks? BDCs typically don’t fare well in recessionary periods."
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