Kiplinger

Need Yield? Try These 5 Best BDCs for 2021

If you're looking for stable, high-yield income, business development company (BDC) stocks should be on your short list. BDCs are generally some of the highest-yielding equities available, and today is no exception.

BDCs are, in that both were creations of Congress to stimulate investment, and both benefit from preferential tax treatment. They pay no income taxes at the corporate level so long as they pay out at least 90% of their net income to their investors as dividends. This is why BDCs, along with REITs, tend to have such high dividend yields. They're legally mandated to pay out nearly every red cent.

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