How Triangle Capital Corporation Makes Its Money

In the world of dividend investing, REITs -- Real Estate Investment Trusts -- tend to get a lot of attention, and justifiably so. Without the double taxation of corporate income tax and with a codified requirement to pay out big dividends, REITs can be very attractive investments.

Lesser known, but equally appealing, are a class of entities known as business development companies. Just like REITs, these entities pay little to no corporate income tax so long as they follow certain IRS guidelines and pay out a high percentage of income to shareholders. But instead of focusing on real estate, these BDCs, as they're known, invest in businesses.

In the video below, Motley Fool contributor Jay Jenkins takes a look at the revenue of one such BDC, Triangle Capital Corp (NYSE: TCAP  ) , and makes the case that smaller, tax advantaged companies could be a better investment than larger, more complex firms like Goldman Sachs (NYSE: GS  )

(NYSE: GS  )

Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

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Related Tickers

9/30/2016 11:33 AM
GS $161.76 Up +2.81 +1.77%
Goldman Sachs CAPS Rating: ***
TCAP $19.78 Down -0.04 -0.20%
Triangle Capital CAPS Rating: ****