Total Return Portfolio:

This portfolio is for investors that want a blend of regular and special dividends as well as long-term capital appreciation from increased stock values. The returns from this portfolio will most likely be higher and have more favorable tax treatments while requiring less turnover. However many of the higher return BDCs are overpriced with correspondingly lower dividend yields and may involve more risk due to higher amounts of equity investments needed for net asset value ("NAV") per share growth and the potential for realized gains to pay special dividends.






High-Yield Portfolio:

This portfolio is for investors that are willing to take on a little more risk with less capital appreciation, but higher dividend yields.






Risk Averse Portfolio:

This portfolio is for investors who do not want to worry or 'babysit' their investments and are not using them as a major source of income. Many of the lower risk BDCs have higher multiples contributing to lower average yields, but during market corrections, they tend to outperform the others with less volatility and still pay a healthy dividend with long term capital appreciation.






Value & Growth Portfolio:

This portfolio is for investors who want to participate in capital gains from undervalued BDCs and will most likely have the highest turnover and needs more attention than the other portfolio types. This is for investors looking for capital appreciation in the long and short term, while willing to take on a little more risk and most likely these BDCs will have higher yields.

Suggested BDC Portfolios

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