The Fed has said it will finally hike interest rates this year. As rates rise, business development companies (BDCs) are a type of income stock that should perform especially well.
However, the uncertainties from inflation, omicron, and a waffling Federal Reserve will likely make for a bumpy ride over the next six-to-nine months.
The way to minimize the impact of these short-term challenges is to stick with the largest BDCs.
But before I list those, let’s talk about why BDCs will do well as interest rates rise…
The post The Three Best BDC Stocks for Rising Interest Rates first appeared at Investors Alley.