Cheap Stocks to Buy Now – Blackrock Kelso (BKCC)
Price as of 8/14/14: $9.05
I named BlackRock Kelso Capital Corp. (BKCC) in my best cheap stocks under $10 to buy in June. And while shares have gone nowhere, BKCC stock does continue to boast a massive 9.3% dividend yield based on its last payout of 21 cents per share quarterly.
That means even if shares continue to see pressure, you’ll still make a decent return on this cheap stock.
BKCC is a business development company, or BDC, which generates revenue from investments in and loans to midsized companies. As that capital generates returns, BlackRock Kelso shares generate big dividends.
Of course, that means BKCC lives and dies by its underlying investments. You can look into its full list of investments here for more detail … but the good news is that, broadly, the American economy continues to improve and there appears to be a durable recovery underway.
If the economy picks up steam and more midsize companies look to expand, BlackRock Kelso will benefit handsomely. This company’s great dividend and the fact it trades for a roughly 10% discount to its book value also are big pluses.