Solar Senior Capital (SUNS)

(Thomas) #1

Dividend Yield: 8.19%

Don’t let the name fool you. Solar Senior Capital doesn’t specialize in providing capital to the solar power industry. It is another business development company, and like Prospect and Capitala, it’s highly diversified in terms of industry exposure.

There is a noteworthy difference between Solar Senior Capital and its BDC peers, however. The organization [focuses primarily on senior secured loans of privately owned middle-market companies, which better positions it to, if nothing else, preserve capital.

The trade-off for safety is yield. Solar Senior is only paying out 8.19% of the stock’s current price as an annualized dividend. And it’s been [paying it, and adding to it, faithfully since 2011