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)


Fool contributor Jay Jenkins has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.