What are your thoughts on BDCs? Are they a reliable stream of income? What's the best way to invest in them?

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Answered by Dave Bradley, Investment Manager (Financial Advisor) in North Charleston, SC
Hi Anonymously.
Business Development Companies (BDCs) provide investors with exposure to both debt and equity mainly to small and medium privately held firms. They are regulated and like REITs they must distribute over 90% of their profits to shareholders. Keep in mind that many of their holdings are illiquid meaning you really need to do your homework, which is true for any investment. The best way to invest is the way that works for you.

MoneyTips has a great article on investing strategies. Feel free to contact us directly for deeper discussions. No obligation.

It’s not what you make; it’s what you keep that determines your lifestyle. | 08.30.16 @ 01:36
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