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Business development companies (BDCs) were created by Congress in 1980 to give investors an opportunity to invest in private small and mid-sized U.S. companies typically overlooked by banks. Most BDCs are publicly traded with a highly transparent structure subject to oversight by the SEC, states and other regulators, providing investors with higher than average dividend yields (between 7% and 14% annually) by avoiding taxation at the corporate level. This allows them to pass along ordinary income and capital gains directly to the shareholder. BDCs are required to distribute at least 90% of taxable income and gains to shareholders to avoid corporate income tax as well as maintaining conservative asset coverage ratios.

FREE BDC RESEARCH

This section covers some of the publicly available articles with comparative analyses for the BDC sector including dividend coverage and risk profile discussions, effective leverage, management fee structures, portfolio credit quality trends, market pricing, total returns, changes to book value (NAV) per share, institutional and insider ownership, growth capital, potential equity and debt offerings, Baby Bonds, etc.

PREMIUM BDC RESEARCH

These reports provide overall rankings, charts with target prices and recommendations, updated individual projections for 25 BDCs, dividend sustainability analyses with best and worse scenarios, portfolio recommendations, total return and earnings estimates, interest rate sensitivity analysis and expected future equity offerings as well as discuss my personal BDC allocations with updates for real-time purchases/sales. To see a full description of these reports please visit “Premium Reports“.

BDC GOOGLE SHEETS

This is a recently added feature for active traders or investors that want real-time updated pricing and recommendations, with easy to use and helpful indicators for identifying actionable opportunities during market volatility. BDCs can be volatile and timing is everything for investors that want to get the “biggest bang for their buck” but still have a higher-quality portfolio that will deliver consistent returns over the long-term.

BDC PORTFOLIOS

INDIVIDUAL BDC PROJECTIONS

  • Best – Base – Worst Case Scenarios
  • Portfolio Credit Issues
  • Discussion of Recent Results
  • Optimal Leverage Analysis
  • Lower Yield Analysis
  • Interest Rate Sensitivity Analysis

OTHER REPORTS

  • Interest Rate Sensitivity
  • BDC Portfolio Returns
  • Quarterly Earnings Analysis
  • BDC Buzz Positions

DIVIDEND COVERAGE
LEVELS REPORT

  • Updated Weekly
  • Rankings of Projected Coverage
  • Running List of Changes and Reasons

BDC PRICING REPORT

  • Yield – Based / Multiples / Total Return
  • Suggested Buys
  • General Market Trends

BDC RISK PROFILES

  • Quality of platform and management
  • Portfolio vintage analysis
  • Exposure: industry sectors / structured products
  • NAV stability / growth potential
  • Reaching for yield / dividend coverage

SUGGESTED PORTFOLIOS

  • Total Return
  • Recommended Higher Yield
  • High – Yield
  • Risk Averse

OVERALL BDC RANKINGS

  • Dividend Coverage
  • Risk Profiles
  • Pricing & Valuation
  • Expected Returns

BDC Buzz Positions

  • Current holdings & allocations
  • Real-time announcements
  • Potential upcoming purchases
  • List of previous changes