Historical dividend distributions for GBDC (gray bars are special dividends) (Seeking Alpha) Owl Rock Capital – Yield: 9.72% In the short term, however, GBDC has proven it can provide a high standard of income. Ultimately GBDC is a non-diversified investment management company there is definitely some risk here in the long-term, especially if firms default on their loans. It may be prudent to assume that the dividend won’t be growing any time soon. However, with a relatively low market cap of only $2.29 billion, the struggling growth is a bit surprising. Occasionally, GBDC also issues a surprise dividend. Over 10 years of distributions is a reasonable track record. GBDC has sustained a very stable dividend of over $0.25/share for as long as Seeking Alpha has data. It’s most recently recommended by Stephen Nemo, Gen Alpha, and On the Pulse. The vast majority of investments are in loans, which lends itself to some safety compared to equity investing. GBDC is a BDC that invests in middle-market private equity companies, for which the sector scope is all-encompassing. Seeking Alpha Quant factor grades for GBDC (Seeking Alpha) Honorable Mention: Ares Capital ( ARCC) – Yield: 10.05% ( ORCC) – Yield: 9.72%īroadstone Net Lease, Inc. To summarize, the 3 picks (+1 honorable mention) are as follows: The methodology is given at the end of this article. At the very least, this approach is more robust than getting stock picks by word of mouth, and is easier than understanding the ins and outs of dozens of corporations. Instead of searching through endlessly many financial statements, we can instead rapidly screen thousands of stocks for value and profitability metrics, and then only scrutinize a handful of high-scoring stocks. There are thousands of stocks listed on global exchanges, and many hundreds which are suitable for income-driven investment strategies.

Finally, the company needs to sustain those profits for as long as you’re investing. Paying more cuts into your return on investment.

Then, it’s important to consider how much you’re paying for those profits (value). First of all, the company must be profitable right now – not in the future, but right now. If your goal is consistency, for example a steady stream of income, then here is a list of sample criteria you may consider. There ought to be a way to tease out features of stocks that are responsible for them making money. From a personal perspective, the purpose of investing is to make money.

Dividend capture strategy