{
  "id": 19876027,
  "title": "What Is a Business Development Company? 2 BDC Stocks to Buy for Income.",
  "url": "https://urgent.news/2026/11/13/what-is-a-business-development-company-2-bdc-stocks-to-buy-for-income",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-13T21:54:22.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/11/13/what-is-a-business-development-company-2-bdc-stocks-to-buy-for-income/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "Business Development Companies (BDCs) are a lesser-known investment option that aims to generate high dividends. Like Real Estate Investment Trusts (REITs), BDCs are required to distribute 90% of their taxable income as dividends. This makes them an attractive choice for investors seeking income. In this article, we will discuss two top BDC stocks to consider for income-generating investments.\n\nMain Street Capital (MAIN) is a leading BDC that has consistently raised its dividend for 19 consecutive years, including the 20th year in 2027. The company distributes a monthly dividend, providing investors with a steady income stream. Furthermore, Main Street Capital holds an equity stake in its investments, which contributes to its overall success. With a high dividend yield of 7.66%, Main Street Capital is an excellent option for investors seeking income and potential capital appreciation. Reinvesting the dividends has resulted in an impressive 16.6% annualized return over the years.\n\nAres Capital (ARCC) is another BDC worth considering for income investors. With a higher dividend yield of 9.88%, Ares Capital pays out quarterly dividends. Although its dividend growth has not been as consistent as Main Street Capital's, the company has maintained its dividend at $0.48 per share for the past four years. Ares Capital invests in larger, middle-market companies with strong cash flows, experienced management, and differentiated business models. While its stock has a lower average annualized return (2.2%) compared to Main Street Capital, with dividend reinvestment, Ares Capital's return increases to 12.4% over the past decade.",
  "summary": "These two BDCs deliver yields of 7.6% and 9.8%, respectively.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Nasdaq Markets",
        "title": "What Is a Business Development Company? 2 BDC Stocks to Buy for Income.",
        "url": "https://urgent.news/2026/11/13/what-is-a-business-development-company-2-bdc-stocks-to-buy-for-income-19878196",
        "published": "2026-11-13T22:14:22.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}