BIZD ETF

The BDC sector has rebounded recently due to a plethora of good news. We expect the sector to continue to perform well moving forward. However, does that make 11%-yielding BIZD a Buy?

BDCs are currently exposed to multiple structural headwinds. It is very difficult to substantiate a bullish case for the BDC sector. In my view, to achieve alpha, one would have to go far out on the risk curve.

BDCs offer attractive opportunities for income investors to enhance their portfolio yields. Yet, since the yields are so enticing, the chances are high for getting caught in value traps. In the article I elaborate on two BDCs that are very close to cutting their dividends with a high probability of making the announcements in 2025.

My portfolio focuses on high-yielding stocks, as they are ideal components of an opportunistic capital recycling strategy. That said, not all high-yield stocks make for good investments. I share one stock with a dividend yield of over 13% that I would avoid right now.

Hedge fund veteran and Wall Street-approved suit Scott Bessent is likely the new Treasury secretary. That's why this 11% dividend is a big winner.

The BDC universe is small, with less than 50 players, and only 4 have market cap levels exceeding $5 billion. Hence, retail and income-oriented investors can exploit high yields and market inefficiencies due to less competition from institutional "smart money". If, however, there is a willingness to enter the BDC universe via ETFs, there are only two meaningful options - BIZD and PBDC.

I love stocks that pay big dividends and buy back a lot of stock. I share some dividend stocks that meet these criteria. I detail why they are compelling buys right now.

High-yield dividend stocks can powerfully boost passive income. However, they come with significant risks, especially when yields exceed 10%, indicating potential payout cuts or limited growth. I discuss one underappreciated 14%-yielder that is an attractive buy and another popular one that is a sell in the current environment.

Are you a yield hound?  It's becoming more challenging to find quality investments with high yields.