There are lots of ways to earn big yield in this market, and the BDC space (business development companies) is ripe with opportunities. And while BDCs come in a wide variety of shapes and sizes (data is shared in this report), one that stands out is Trinity Capital (TRIN) because of its growth-sector niche (arguably better aligned with the “new” US economy), internal management team (less conflicts of interest) and outstanding 14% dividend yield. This report reviews all of that, plus the big risks Trintiy currently faces, and then concludes with my strong opinion on investing.

If you like big steady income (to offset the short-term uncertainty of long-term stock-market investments), closed-end funds (“CEFs”) currently offer a widely-diverse set (ranging from varied stock and bond strategies) of big-yield opportunities (9%+ yields, often paid monthly) to choose from (ranging from those benefiting from market over-reactions to Fed interest rate signaling as well as otherwise-steady utility sector opportunities being whipsawed by AI’s startling demand for energy). This report shares 10 top big-yield opportunities (including a variety of relevant quantitative data and important qualitative commentary) and dives a bit deeper into one contrarian PIMCO bond CEF that is particularly compelling right now. Enjoy!

Investors love to look at Main Street Capital’s relatively high price-to-book value and immediately declare it an overvalued bubble of a Business Development Company (“BDC”). But what many investors don’t realize is it’s a fundamentally different type of BDC with its steady net asset value (“NAV”) gains (while peers stay relatively flat—or worse). So while some thumb their nose at Main Street’s mere 5.3% dividend yield (puny in the BDC space), they fail to recognize the steady dividend growth, plus the powerful supplemental dividends, as well as the many other attractive qualities that set it apart (i.e. low debt, strong liquidity, above-average pipeline, healthy portfolio, efficient operations and macro resilience). This report reviews all of that (and the big risks) and then concludes with my strong opinion on investing.

As the largest publicly-traded Business Development Company (“BDC”), Ares Capital (ARCC) is not only well-positioned to defend its big dividend (current yield is 9.3%) with spillover capital, but it’s also well-positioned with multiple levers for growth (e.g. conservative balance sheet leverage, fees and plenty of deal flow). And despite the big risks (such as falling rates, spread compression and “hidden” liabilities), the latest earnings announcement suggests it continues to present an attractive valuation for long-term income focused investors. This report shares data on 10 top big-yield BDCs, then reviews the details on Ares and concludes with a strong opinion on investing.

If you are concerned about frothy growth stock valuations, the contrarian “Dogs of The Dow” strategy is something you may want to consider. This report dives deep into the current “dogs” sharing all kinds of data worth considering and then reviews UnitedHealth Group in detail (i.e. one particularly interesting current “Dog of The Dow”). Enjoy!

This report shares updated data on 10 top big-yield closed-end funds (CEFs), including bonds, stocks and a couple utility-sector specific funds. They all offer attractive big yields, but one BlackRock fund stands out for a particularly compelling opportunity right now.

Business Development Companies (BDCs) continue to provide big steady yields (income) to investors despite a challenging BDC environment, including interest rate volatility, increasing competition and economic uncertainty. Although BDC strategies are varied, they generally provide loans to riskier private business where traditional bank lending is less suitable, and then reduce aggregate risks by doing so through a diversified portfolio (within their areas of expertise). Many are facing selling pressure (see 14-day money flow index) and some trade below book value (generally an indication of fear, depending the the particular BDC strategy). Increasingly compelling contrarian yield opportunities in an otherwise greedy market environment.

A lot of investors believe the bond CEF I review in this report is “second rate” compared to PIMCO bond CEFs, but with an impressive BIG (temporary) price decline (and now discount) versus NAV and a 10.9% distribution yield (paid monthly), it’s worth considering (and the management company has massive resources too). In this report, I review the opportunity, including how it generates that big monthly yield, what are the big risks, and then I conclude with my strong opinion on investing.

Trading at an attractive 1.4x book value, the BDC I review in this report prints money when it issues new shares (which it does frequently). And the big 11.4% dividend yield is now paid monthly (previously it was quarterly). After reviewing the business, valuation, dividend safety and risks, I conclude with my strong opinion on investing.

The Schwab US Dividend Equity ETF (SCHD) is increasingly popular (total assets have zoomed to over $70 billion), yet it has significantly underperformed the market (SPY) and especially the tech-heavy Nasdaq 100 (QQQ). This report reviews the SCHD strategy, including its attractive qualities and big risks, and then concludes with my strong opinion on investing.

If you like big-yield opportunities, trading at discounted prices, the healthcare sector CEF I review in this report is worth considering. It currently offers a 14% yield (paid monthly) and trades at a big contrarian discount (its top holdings are down big, and it trades at a 9% discount to NAV). This report takes a closer look at what is happening here (in terms of fund strategy, valuation and risks) and then concludes with my strong opinion on investing.

This public equity (stock market) closed-end fund (CEF) is compelling thanks to its long history (85+ years) of paying big distributions (guaranteed yield is 8%, and 2024 was 10.9%) and its outperformance versus the S&P 500 (see chart below). However before investing, it’s important to understand how the fund is constructed (what are its goals) and why do many investors absolutely “hate” it (they generally have different goals and don’t care to understand the mechanics). After reviewing the details, I conclude with my strong opinion on who may, and who may not, want to invest, and why. Enjoy!

Just like inflation is a hidden tax on your money, so is return of capital (“ROC”) on your big-yield closed-end fund (“CEF”). For example, PIMCO’s CEFs are particularly impressive and attractive, just not as much so as many people seem to think considering not a single one actually covered its distribution over the last year (see table below). This report shares high-level data on PIMCO’s popular big-yield CEFs, with a special focus on the Dynamic Income Fund (PDI), and then draws a critical conclusion based on the risks and rewards.

One of my biggest concerns for income-focused investors is opportunity cost. Specifically, they often concentrate their nest eggs in lower-growth sectors of the economy (because that’s where the dividends are) and/or in distressed companies (because that’s where the high-yield/junk bonds are at) and thereby sacrifice total returns. However, the internally-managed BDC I review in this report offers a healthy 9.9% dividend yield by investing in growth-focused sectors and companies (by providing financing to them during their early, pre-IPO, venture capital phase). In this report, I review the business, growth, dividend, valuation and risks, and then conclude with my strong opinion on investing.

The BDC I review in this report looks good for its big well-covered distribution, early growth-stage investments (RocketLab, for instance), internal management team, investment grade credit rating and reasonable valuation. Of course there are risks (industry concentration, interest rates, and an increasingly competitive BDC space) but within the constructs of a prudently-concentrated high-income portfolio, it’s absolutely worth considering for investment.

Down nearly 20% this year, United Parcel Service (UPS) may look ugly (especially considering revenue is expected to decline), but a closer look reveals a compelling big dividend value play with operational and financial strengths, and despite the big risks. In this report, I review the details and then conclude with my strong opinion on who might want to consider investing.

Novo Nordisk (NVO) is a global leader in diabetes and obesity care, and its shares are down 50% since peaking in June 2024 (due to competition, pipeline setbacks and political uncertainty). However, the underlying fundamentals appear compelling. This report reviews the business, growth, risks, valuation and capital allocation, and then concludes with my strong opinion on investing.

UnitedHealth Group, a stalwart Dow Jones component and important part of the healthcare sector, is trading 50% below recent all-time highs due to operational challenges (they pulled guidance), regulatory scrutiny (the DOJ is probing potential Medicare Advantage fraud) and leadership changes. This report reviews the business, growth, capital allocation, valuation and risks, and then concludes with my strong opinion on investing.

Monolithic Power Systems (MPWR) presents a particularly compelling investment opportunity. Not only is it an Nvidia AI megatrend beneficiary (enabling energy-efficient semiconductor technologies), but it’s an enormously profitable (~80% net margin), strong-balance sheet, dividend-growth powerhouse that is currently trading at an attractive price. In this report, I review the business, market opportunity, growth, valuation, dividend and risks, and then conclude with my strong opinion on who may want to consider investing, and how.

The Reaves Utility Income Trust (UTG) is a special, utility sector focused, closed-end fund (“CEF”) offering big, tax-advantaged, monthly income (7.6% yield) and unique exposure to the AI datacenter megatrend, which has just pulled back and thereby offers some compelling price appreciation potential (not to mention it also trades at a small but attractive discount to net asset value (“NAV”)). This report reviews the fund’s strategy, holdings, distribution safety, valuation (and megatrend exposure) and risks, and then concludes with our strong opinion on investing.

The market is currently offering a "flash sale" on select big-yield opportunities (i.e. those offering 10% yields or more). This doesn't happen often, so let's review these temporary "sale prices" to make sure we are getting quality and not junk. In this report, we review three top big-yield opportunities that are currently down big (including a BDC, a CEF and a REIT) and then conclude with our strong opinion on investing.

If you like unique businesses that stand out for wide-moat competitive advantages, strong cash flows and secular tailwinds, then you may want to consider Texas Pacific Land Corp (TPL). This unique “oil & gas” company blends real estate (Permian basin land), energy royalties and water resources, and the shares have pulled back despite ongoing strong fundamentals. This report reviews the business, growth, valuation, risks and competitive advantages, and then concludes with a strong opinion about investing.

If you are an income-focused investor, you have a lot of opportunities to chose from (as we recently wrote about here). But if you are focused on the “big yield” space, you have a lot to choose from too, and PIMCO is the perennial leader in this space when it comes to bond-focused Closed-End Funds (or CEFs). Here is a look at recent current yields, and distribution coverage ratios, followed by a discussion (and ranking) of these 11 big-yield opportunities (including popular tickers like PDI, PDO, PTY, PAXS, PTY and more). Enjoy!

There are lots of yields over 10% to choose from (such as those in the table below), and some of them are actually worth considering (especially 2 of the top 3 specifically highlighted in this report). But how safe is it really to own such massive income-producing investments? (especially at this point in the market cycle). We’ll build up to that answer (in the conclusion) by reviewing three specific big yielders (one REIT, one BDC and one CEF). Enjoy!