TendieTensor TendieTensor
You’re browsing as
Guest
Free Preview
Sign in/sign up to unlock all features.

News  ›  Investing.com

From BDCs to CEFs: Here’s How to Get 8% Dividends in 2026

Investing.com Logo Investing.com By Michael Foster
From BDCs to CEFs: Here’s How to Get 8% Dividends in 2026

The article explores Business Development Companies (BDCs) and Closed-End Funds (CEFs) as alternatives to traditional stocks for generating higher dividend income. While BDCs offer 90% income distribution requirements, they carry risks from lending to smaller companies. CEFs, particularly equity-focused ones, provide an attractive combination of ~8% average dividends with growth potential, with 97.7% of tracked CEFs profitable over the past decade and trading at a 5.3% discount to net asset value.

Insights
GOOG   neutral

Mentioned in context of YouTube TV dispute with Disney, no direct performance assessment


OBDC   negative

Despite offering an 11.7% yield, OBDC has dropped 9% in 2025 even with dividends included, indicating poor total return performance and underperformance relative to alternatives.