Deep Dive: How to still get 10% dividend yields — if you can stomach the risk

In May 2015, we reviewed business development companies (BDCs), publicly traded companies that have particularly high dividend yields — some of them higher than 10%. Now that interest rates have (apparently) bottomed out, it’s time to see how they’ve performed, and also to seek out others.

Please see the previous article for a definition of BDCs. In short, they’re regulated investment companies that distribute most of their income as dividends. They generally make loans to small and medium-sized companies, and have been expanding their business in the post-financial-crisis environment, as banks have pulled back from such lending.

And this means BDCs tend to have high dividend yields.

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