This is how wealthy people invest—and collect yields up to 12.5%.
Private equity (PE) is usually reserved for the rich. It’s the time-honored sport of milking cash from perfectly good businesses! Bleed ‘em dry and keep those dividends coming.
Business development companies (BDCs) are PE-esque companies. Many trade publicly and we can buy them just like regular stocks. For what it’s worth, many BDCs trade for reasonable share prices, between $20 and $30 or so.
They tend to pay big dividends. The three BDCs we’re discussing today yield between 10.7% and 12.5%.
This post originally appeared at Contrarian Outlook.