Top Picks for Income Investors: Business Development Company Yielding 9.5% and Hotel REIT With 25% Dividend Hike
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ARCC is a large, diversified, and well-managed BDC yielding 9.5% that is positioned to benefit from rising demand for non-bank capital.
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RLJ is a hotel REIT with improving performance metrics that recently raised its dividend by 25% and is buying back shares.
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RLJ-A is a preferred stock from RLJ yielding 7.8% that is unlikely to ever convert to common shares.
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Both ARCC and RLJ-A are recommended as perpetual holdings for a growing stream of passive income.
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The text advocates tuning out "Mr. Market's" emotions and taking a long-term, income-focused approach to investing.