BDCs to Buy – Fifth Street Finance (FSC)
FSC Dividend Yield: 10.1%
Fifth Street Finance (FSC) is a BDC that lends to and invests in small- and mid-sized companies in connection with an investment by private equity sponsors. FSC has a diversified lending portfolio that is focused on the top of the capital structure, as 83% of the loans are senior secured obligations.
FSC has a working relationship with more than 250 private equity fund sponsors that helps the company find and fund attractive loan and investment opportunities. Currently, FSC has investments in or loans to 124 companies spread across 15 different industry groups.
FSC shares trade right around net asset value and pay a monthly dividend that adds up to a 10.1% yield.