Best Dividend Stocks for Retirement – UBS E-TRACS Wells Fargo Business Development Company ETN (BDCS)
So, this last one actually isn’t a stock. It’s still worth your attention, though.
UBS E-TRACS Wells Fargo Business Development Company ETN (BDCS) is an exchange-traded note that represents a basket of business development companies. BDCs invest in fast-growing middle-market companies that generally have solid cash flow, but need to take on additional debt to meet their growth demands. BDCs thus are able to charge interest in the 11% to 15% range, and must pay out 90% of their net income to investors.
This ETN’s basket of business development companies means that if a few of them are making bad investments (and even go under), you still should be plenty protected via diversification. BDCS is one of the highest-dividend stocks out there, yielding 7.1%.
As of this writing, Lawrence Meyers was long AHT. He is president of Asymmetrical Media Strategies, a crisis PR firm, and PDL Broker, Inc., which brokers financing, strategic investments and distressed asset purchases between private equity firms and businesses. He also has written two books and blogs about public policy, journalistic integrity, popular culture, and world affairs. Contact him at firstname.lastname@example.org and follow his tweets at @ichabodscranium.