Business development companies (BDCs) have gained popularity in recent years, but they still don’t get as much attention as they should. Which is too bad, because they pay life-changing (no exaggeration here) dividends.
So it’s no surprise that BDCs have started to make it on to the mainstream crowd’s radar. But—these days especially—we do need to be careful with them.
I’ll get into why—and why I prefer another high-yielding asset class to BDCs right now—in a second. But for starters, let me just say that it’s vital to avoid BDCs with two main flaws…
This post originally appeared at Contrarian Outlook.