Top High Yield Business Development Companies

Investing in Business Development Companies is a way for the smaller investor to get in on the ground floor of private equity deals and venture capital opportunities. This type of company, also known as a BDC, is similar to a publicly traded private equity fund. These companies invest or lend money in smaller private businesses, with a goal of increasing sales and profits in order to sell the company or go public with an IPO.

Many private equity companies are registered as BDCs for tax advantages, since corporate income taxes can be avoided if at least 90% of profits are paid out as taxable dividends to investors. Normally, these deals are only available to major institutions and multimillionaires. Private equity companies, venture capital funds, and business development corporations are often used interchangeably.

Fortunately for the average investor, there are over a couple dozen ways to invest in these opportunities, according to the WallStreetNewsNetwork.com recently updated list of publicly traded Business Development Corporations and Private Equity Companies, most of which pay high yields in excess of 6%.

One of the highest yielding BDCs is TICC Capital (TICC), which has been paying dividends quarterly since 2004, and pays an extremely high yield of 11.6%. The stock has a price to earnings ratio of 7.6 and a forward PE of 9. Revenues for the latest quarter were up 19.4% year over year, but unfortunately, earnings were down 84.3%. This BDC funds secured and unsecured senior debt, subordinated and junior subordinated debt, and preferred and common stock of both private and public companies, specializing in technology, media, telecom, and medical equipment.

The company has invested in such companies as NetQuote, Inc., the web-based portal for insurance companies and consumers, StayOnline, Inc. a provider of wireless high-speed Internet access solutions for the lodging industry, and Ai Squared, a manufacturer of assistive technology software which makes the screen magnification program ZoomText.

BlackRock Kelso Capital Corporation (BKCC), a private equity firm founded in 2005, specializes in investing in middle market companies with EBITDA or operating cash flow between $10 million and $50 million. The firm has invested in various businesses including American SportWorks, Fitness Together, Grocery Outlet, Heartland Automotive Services, InterMedia Outdoors, Pre-Paid Legal Services, Renaissance Learning, and Sentry Security Systems. The stock trades at 12.4 times trailing earnings and 10.4 times forward earnings. The company pays a very high yield of 10.9%. Dividends are payable quarterly.

If you like monthly dividends, Gladstone Capital (GLAD) offers a very decent yield of 9.4%. Obviously, with these higher yields, you have higher risks. In addition, when interest rates rise, high yield BDCs can suffer significant drops.

If you are looking for potential high dividend investments, a list of over 25 high yield business development companies and private equity companies, which can be downloaded, sorted, and updated, is available from WallStreetNewsNetwork.com. A few of these companies pay dividends monthly and over a dozen have yields greater than 7%.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Private Equity Companies Yield More than 5%

Private equity is usually limited to the very wealthy and large institutions. Fortunately, the average investor can also get in on the action since there are many publicly traded private equity firms. The private equity companies provide working capital to smaller companies that are not publicly traded, in the hopes of improving revenues and earnings with a goal of profiting through bringing the companies public through an Initial Public Offering, also known as an IPO, or just reselling the companies to larger firms. Private equity companies also often provide loans to these companies.

Private equity companies, venture capital funds, and business development corporations are generally considered part of the same investment category, primarily due to the fact that these investment vehicles allow investors to get in on the ground floor of private companies before they go public. Once the companies in the portfolios have an IPO, the returns can be substantial.

A Business Development Corporation, also known as a Business Development Company or BDC, is similar to a publicly traded private equity fund. Many private equity companies are registered as BDCs for tax advantages, generally paying no corporate income tax because at least 90 percent of their income, profits, and capital gains are paid out as taxable dividends to investors.

If you are wondering how you cn invest in these, WallStreetNewsNetwork.com recently updated its list of over 25 publicly traded Business Development Corporations and Private Equity Companies, most of which pay high yields, with yields ranging from 3.4% to in excess of 10%.

One example is TICC Capital (TICC), a BDC that has been paying dividends quarterly since 2004, and yields 11.0%. Last Fall, the company boosted its dividend payout rate by 7.4%. The stock has a price to earnings ratio of 6.2 and a forward PE of 8.6. Revenues for the latest quarter were up 40.6%. The company invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, and common stock of both private and public companies, specializing in technology, media, telecommunications, and medical equipment. The company has invested in NetQuote, Inc., the web-based portal for insurance companies and consumers, StayOnline, Inc. a provider of wireless high-speed Internet access solutions for the lodging industry, and Ai Squared, a manufacturer of assistive technology software which makes the screen magnification program ZoomText.

BlackRock Kelso Capital Corporation (BKCC) which a private equity firm founded in 2005 which specializes in investing in middle market companies with EBITDA or operating cash flow between $10 million and $50 million. The firm has invested in such companies as American SportWorks, Fitness Together, Grocery Outlet, Heartland Automotive Services, InterMedia Outdoors, Pre-Paid Legal Services, Renaissance Learning, and Sentry Security Systems. The stock trades at 12.1 times trailing earnings and 10.2 times forward earnings. It sports a yield of 9.8% and pays its dividends quarterly.

Ares Capital (ARCC) is a private equity company that trades at 11 times forward earnings and yields 9.4%, and THL Credit (TCRD) has a 10.8 forward price to earnings ratio and pays a yield of 8.8%.

A list of over 25 high yield business development companies and private equity firms, which can be downloaded, sorted, and updated, is available from WallStreetNewsNetwork.com. Several of these companies pay dividends monthly and more than a dozen have yields greater than 8%.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

10% Yields on Business Development Corporations and Private Equity Funds

Private equity companies, venture capital funds, and business development corporations are usually grouped together in the same investment category. This is mainly due to the fact that these investment vehicles allow investors to get in on the ground floor of private companies before they go public. Once the companies in the portfolios have an IPO, the returns can be substantial.

Private equity firms invest in the equity and often the debt of private companies. Usually private equity investments are available for accredited investors only, but fortunately, there are several private equity funds which are publicly traded that anyone can buy.

A Business Development Corporation, also known as a Business Development Company or BDC, is similar to a publicly traded private equity fund. Many private equity companies are registered as BDCs for tax advantages, generally paying no corporate income tax because at least 90 percent of their income, profits, and capital gains are paid out as taxable dividends to investors.

If you are wondering how common these types of investments are, WallStreetNewsNetwork.com recently updated its list of the publicly traded Business Development Corporations and Private Equity Companies, which lists over 25 of them, most of which, income investors will be happy to hear, pay dividends. The yields range from 2.9% to in excess of 12%.

One example is BlackRock Kelso Capital Corporation (BKCC), a private equity firm founded in 2005 specializing in middle market companies, with EBITDA or operating cash flow between $10 million and $50 million. The firm invests in such companies as American SportWorks, Fitness Together, Grocery Outlet, Heartland Automotive Services, InterMedia Outdoors, Pre-Paid Legal Services, Renaissance Learning, and Sentry Security Systems. The stock trades at 11.8 times trailing earnings and 9.6 times forward earnings. It sports a yield of 10.6% and pays its dividends quarterly.

TICC Capital (TICC) is a BDC that has been paying dividends quarterly since 2004, and yields 11.1%. The stock has a price to earnings ratio of 14.3 and a forward PE of 8.7. The company invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, and common stock of both private and public companies, specializing in technology, media, telecommunications, and medical equipment. The company has invested in NetQuote, Inc., the web-based portal for insurance companies and consumers, StayOnline, Inc. a provider of wireless high-speed Internet access solutions for the lodging industry, and Ai Squared, a manufacturer of assistive technology software which makes the screen magnification program ZoomText.

PennantPark Investment (PNNT) is a business development company that yields 10.3%, and has been paying quarterly dividends since June of 2007. The company invests between $10 million and $50 million in each of its portfolio companies, holding mezzanine debt, senior secured loans, and equity investments. The stock trades at 9.2 times forward earnings. PennantPark invests in such companies as the hot tub and spa manufacturer Jacuzzi Brands Corp., Learning Care Group, Inc. which is owner of one of the largest early education and child care providers La Petite Academy, and VPSI, the world's largest vanpool service provider.

To see a list of over 25 high yield business development companies and private equity firms, which can be downloaded, sorted, and updated, you may want to obtain it at WallStreetNewsNetwork.com. Several of these companies pay dividends monthly and more than a dozen have yields above 8%.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

High Yield Business Development Corporation Stocks Paying Over 9%

Income investors who are looking for a little speculation are taking a closer look at private equity firms and business development corporations. Private equity firms invest in the equity and often the debt of private companies. Usually private equity firms are not available to the general public. Yet based on the list of Private Equity Firms at WallStreetNewsNetwork.com, there are over 20 that are publicly traded on the NYSE or NASDAQ, with yields ranging from 3% to 14%. Several of these companies are registered as Business Development Corporations.

A Business Development Corporation, also known as a Business Development Company or BDC, is a publicly traded private equity fund. Many private equity companies are registered as BDCs for tax advantages, generally paying no corporate income tax because at least 90 percent of their income, profits, and capital gains are paid out as taxable dividends to investors.

TICC Capital (TICC) is a BDC that has been paying dividends quarterly since 2004, and yields 12%. The stock has a price to earnings ratio of 7 and a similar forward PE. The company invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, and common stock of both private and public companies, specializing in technology, media, telecommunications, and medical equipment. The company's investments include NetQuote, Inc., the web-based portal for insurance companies and consumers, and StayOnline, Inc. a provider of wireless high-speed Internet access solutions for the lodging industry, and Ai Squared, a manufacturer of assistive technology software which makes the screen magnification program ZoomText.

PennantPark Investment (PNNT) is a business development company that yields 10.4%, and has been paying quarterly dividends since June of 2007. The company invests between $10 million and $50 million in each of its portfolio companies, holding mezzanine debt, senior secured loans, and equity investments. The stock trades at 8.3 times current earnings and has a forward price to earnings ratio of 8.2. PennantPark invests in such companies as the hot tub and spa manufacturer Jacuzzi Brands Corp., Learning Care Group, Inc. which is owner of one of the largest early education and child care providers La Petite Academy, and VPSI, the world's largest vanpool service provider.

To see a list of over 20 high yield business development companies and private equity firms, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com. Several of these companies pay dividends monthly and more than a dozen have yields above 8%.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Business Development Corps Yielding over 8%

A private equity firm is a company that invests in the equity and/or debt of private companies. Many of these firms are limited to accredited investors. But according to a list at WallStreetNewsNetwork.com, there are over 20 that are publicly traded on the NYSE or NASDAQ, with yields ranging from 3.5% to 12.6%. Some of these companies are registered as Business Development Corporations.

A Business Development Corporation, also known as a Business Development Company or BDC, is a publicly traded private equity fund. Many private equity companies are registered as BDCs for tax advantages, generally paying no corporate income tax because at least 90 percent of their income, profits, and capital gains are paid out as taxable dividends to investors.

PennantPark Investment (PNNT) is a business development company that yields 9%, and has been paying quarterly dividends since June of 2007. The company invests between $10 million and $50 million in each of its portfolio companies, holding mezzanine debt, senior secured loans, and equity investments. The stock trades at 11.4 times forward earnings and has a forward price to earnings ratio of 9.6. PennantPark invests in such companies as the hot tub and spa manufacturer Jacuzzi Brands Corp., Learning Care Group, Inc. which is owner of one of the largest early education and child care providers La Petite Academy, and VPSI, the world's largest vanpool service provider.

TICC Capital (TICC) is a BDC that has been paying dividends quarterly since 2004, and yield 8.4%. The stock has a PE of 5.0 and a forward PE of 10.0. The company invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, and common stock of both private and public companies, specializing in technology, media, telecommunications, and medical equipment. The company's investments include NetQuote, Inc., the web-based portal for insurance companies and consumers, and StayOnline, Inc. a provider of wireless high-speed Internet access solutions for the lodging industry, and Ai Squared, a manufacturer of assistive technology software which makes the screen magnification program ZoomText.

Golub Capital (GBDC) is a private equity BDC firm that just went public last year. It yields 7.9%, payable quarterly, and trades at 11.4 times forward earnings.

To see a list of over 20 high yield business development companies and private equity firms, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com. Several of these companies pay dividends monthly and more than a dozen have yields above 8%.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com