Business Development Corps Yielding over 8%

A private equity firm is a company that invests in the equity and/or debt of
private companies. Many of these firms are limited to accredited investors. But
according to a list at WallStreetNewsNetwork.com, there are over 20 that are
publicly traded on the NYSE or NASDAQ, with yields ranging from 3.5% to 12.6% .
Some of these companies are registered at Business Development Corporations. A
Business Development Corporation, also known as a Business Development Company
or BDC, is a publicly traded private equity fund. Many private equity companies
are registered as BDCs for tax advantages, generally paying no corporate income
tax because at least 90 percent of their income, profits, and capital gains are
paid out as taxable dividends to investors. PennantPark Investment (PNNT) is a
business development company that yields 9%, and has been paying quarterly
dividends since June of 2007. The company invests between $10 million and $50
million in each of its portfolio companies, holding mezzanine debt, senior
secured loans, and equity investments. The stock trades at 11.4 times forward
earnings and has a forward price to earnings ratio of 9.6. PennantPark invests
in such companies as the hot tub and spa manufacturer Jacuzzi Brands Corp.,
Learning Care Group, Inc. which is owner of one of the largest early education
and child care providers La Petite Academy, and VPSI, the world's largest
vanpool service provider. TICC Capital (TICC) is a BDC that has been paying
dividends quarterly since 2004, and yield 8.4%. The stock has a PE of 5.0 and a
forward PE of 10.0. The company invests in secured and unsecured senior debt,
subordinated debt, junior subordinated debt, preferred stock, and common stock
of both private and public companies, specializing in technology, media,
telecommunications, and medical equipment. The company's investments include
NetQuote, Inc., the web-based portal for insurance companies and consumers, and
StayOnline, Inc. a provider of wireless high-speed Internet access solutions for
the lodging industry, and Ai Squared, a manufacturer of assistive technology
software which makes the screen magnification program ZoomText. Golub Capital
(GBDC) is a private equity BDC firm that just went public last year. It yields
7.9%, payable quarterly, and trades at 11.4 times forward earnings. To see a
list of over 20 high yield business development companies and private equity
firms, which can be downloaded, sorted, and updated, go to
WallStreetNewsNetwork.com. Several of these companies pay dividends monthly and
more than a dozen have yields above 8%. Disclosure: Author did not own any of
the above at the time the article was written. By Stockerblog.com