BDC Buzz is devoted to helping members build a solid portfolio of business development companies ("BDCs") and their Baby Bonds/Preferred Stocks focused on sustainable dividend yields and capital preservation. BDCs are publicly traded and designed to provide investors with sustainable annual yields of 6-10% and this service helps investors navigate the associated risks to maximize returns in the sector.
For more information regarding BDCs please see BDC Buzz’s interview on Forbes from May 7, 2021:
What Is a Business Development Company?
A business development company invests money in privately owned, small- and medium-sized companies. BDCs aim to generate income and capital gains when the companies they invest in are sold, much like venture capital or private equity funds. Anyone can invest in BDCs as they public companies, traded on major stock exchanges.
Advantages of BDC Investing
In addition to their higher-than-average dividend yields, BDCs come with many advantages:
Access to private companies. You get access to private market investments, which can otherwise be unavailable or hard to access for regular investors.
Enhanced liquidity. Even if retail investors find a way to buy into private companies, they face another problem: Getting their money out. Publicly traded BDCs give you excellent liquidity, and you avoid locking your money up for extended periods.
More transparency. As highly regulated public companies, BDCs are required by law to provide their investors with extensive information about their financial health. Private companies aren’t required to tell their direct investors much of anything about their finances. This can help you ensure your capital is being spent wisely.
What Can I Expect Each Week From BDC Buzz?
Weekly BDC Sector Update - Before the markets open Monday morning we provide quick updates for the sector including significant events for each of the companies that we follow along with upcoming earnings, reporting, and ex-dividend dates. Also, we provide a list of the best-priced opportunities along with oversold/overbought conditions, what to look for in the coming week, and any other meaningful economic events that need to be considered for the sector.
Deep Dive Projection Reports - Detailed reports on 2 to 3 BDCs per week prioritized by first focusing on potential issues such as dividend coverage and/or portfolio credit quality changes. We look for portfolio updates that might be mentioned in the SEC filings as compared to company announcements. Then, reports are prioritized based on pricing opportunities including equity offerings.
Access - We are available weekdays during market hours via email for any and all questions or concerns.
Real-Time Portfolio Updates - When BDC Buzz makes any changes to his personal portfolio including buying on general market dips.
Suggested BDC Portfolios - Ranging from risk-averse to total return to high-yield. BDC Buzz also shares his personal positions so you can see where he is putting his money. The following are the current yields for each portfolio:
Risk-Averse - 8.0%
Total Return - 7.9%
Recommended Higher Yield - 9.4%
High-Yield - 9.6%
You won’t have to worry about missing anything. Every new edition of our service goes directly to your inbox.
In the meantime, tell your friends!