Today, I want to introduce you to a simple but relatively unknown investment that lets you ride alongside venture capital firms while at the same time receiving inflation-beating cash distributions.
I’m talking about Business Development Companies, also known as BDCs for short.
Because BDCs are regulated investment companies (RICs), they must distribute over 90% of their profits to shareholders. That RIC status means they don’t pay corporate income tax on profits before distributing them to shareholders.
That makes BDCs a great way for individuals to get paid healthy dividends as early investors, especially when the BDC uses floating rate loans that produce more money when rates rise.
Let me tell you about my favorite one…
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