As a pass-through tax structure, RICs must distribute at least 90 percent of
taxable income as dividends to investors. Most BDCs distribute 98 percent of
Apr 26, 2012 ... Like real estate investment trusts (REITs), BDCs are not taxed at the corporate ...
Consequently, BDCs can offer investors much higher dividend ...
Dividend Stock Income Tax Considerations: what you need to know. ... BDC
dividends are mostly taxed at ordinary income tax rates, However, after the year-
Dec 4, 2012 ... So, in a nutshell: no corporate taxes and distributions mandated by regulations,
leading to historically higher yields than traditional dividend ...
companies (BDCs), we examined the factors driving the current popularity. BDCs
enjoy as ... derived from dividends, interest, gains from the sale or exchange of
securities and ... least 90% of its annual investment company taxable income,.
Jan 30, 2014 ... Business Development Companies (BDCs) are publicly traded ... Oftentimes, a
BDC will increase its dividend when market interest rates have ...
Jan 19, 2011 ... BDCs are now paying dividends in the 7-11% range - a lev. ... treatment makes
BDCs more attractive for IRAs and other non-taxable accounts.
Mar 20, 2013 ... On the downside, because they don't pay corporate taxes, dividends paid by
BDCs are not subject to the 15/20% maximum tax rate. Instead ...
Feb 1, 2014 ... In 2012, a full 46% of its dividends were taxed as capital gains or qualified
dividends. Of course, a BDC with a larger equity portfolio also ...
Because of the requirement that the BDC must pay out 90% of their taxable
earnings each year these companies generally pay a sizable dividend (either ...