https://abs.twimg.com/emoji/v2/... draggable="false" alt="✳️" title="Stern mit 8 Strahlen" aria-label="Emoji: Stern mit 8 Strahlen"> Dividend Investors https://abs.twimg.com/emoji/v2/... draggable="false" alt="✳️" title="Stern mit 8 Strahlen" aria-label="Emoji: Stern mit 8 Strahlen">

The most commonly discussed dividend stocks are blue-chip companies and REIT’s https://abs.twimg.com/emoji/v2/... draggable="false" alt="💬" title="Sprechblase" aria-label="Emoji: Sprechblase">

Those are the bread & butter of every dividend investor https://abs.twimg.com/emoji/v2/... draggable="false" alt="☑️" title="Kästchen mit Häkchen" aria-label="Emoji: Kästchen mit Häkchen">

What if I told you there was another type of dividend stock that had double digit yields? https://abs.twimg.com/emoji/v2/... draggable="false" alt="👀" title="Augen" aria-label="Emoji: Augen">

[Thread]

Yeshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="❗️" title="Rotes Ausrufezeichen" aria-label="Emoji: Rotes Ausrufezeichen">I’m talking about
Business Development Companieshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="‼️" title="Doppeltes Ausrufezeichen" aria-label="Emoji: Doppeltes Ausrufezeichen">

BDC’s:

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔹" title="Kleine blaue Raute" aria-label="Emoji: Kleine blaue Raute">are closed-end investment companies (fixed number of shares on the market)

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔹" title="Kleine blaue Raute" aria-label="Emoji: Kleine blaue Raute">primarily provide capital to small and mid-sized businesses

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔹" title="Kleine blaue Raute" aria-label="Emoji: Kleine blaue Raute">usually pay out over 90% of profits to shareholders (like REIT’s)

Of course - like all other investments there are positives & negatives https://abs.twimg.com/emoji/v2/... draggable="false" alt="🎭" title="Darstellende Künste" aria-label="Emoji: Darstellende Künste">

Pros:

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> high dividend yields
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> liquid
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> access to privately-held business

Cons:

https://abs.twimg.com/emoji/v2/... draggable="false" alt="⚠️" title="Warnsignal" aria-label="Emoji: Warnsignal"> high risk
https://abs.twimg.com/emoji/v2/... draggable="false" alt="⚠️" title="Warnsignal" aria-label="Emoji: Warnsignal"> unstable dividends
https://abs.twimg.com/emoji/v2/... draggable="false" alt="⚠️" title="Warnsignal" aria-label="Emoji: Warnsignal"> untransparent holdings

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔆" title="Symbol für starke Helligkeit" aria-label="Emoji: Symbol für starke Helligkeit"> Conclusion https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔆" title="Symbol für starke Helligkeit" aria-label="Emoji: Symbol für starke Helligkeit">

BDC’s are high-risk/high-reward investmentshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer">

They can be great income vehicles for investors seeking big dividendshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">

Would not be ideal investments for investors seeking stable passive incomehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="📊" title="Balkendiagramm" aria-label="Emoji: Balkendiagramm">

Always make sure to do research before investing in a companyhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="‼️" title="Doppeltes Ausrufezeichen" aria-label="Emoji: Doppeltes Ausrufezeichen">