This article is part of a series discussing how to build a retirement portfolio using business development companies (“BDCs”) currently yielding over 12% and their safer notes – baby bonds/preferred shares with yield-to-maturities ranging from 6.5% to 10.0%. The previous article discussed Golub Capital (GBDC) which is a lower yielding BDC that typically implies a “safer” portfolio and/or sustainable dividend coverage.
BDC Buzz Starts a Position in FDUS
I recently started a position in Fidus Investment (FDUS) because I believe that there’s a good chance for a total return potential of 30% or higher over the next 12 months as discussed at the end of the article. My subscribers are well aware that I often wait for stocks to have a relative strength index of (“RSI”) of close to 30 before buying. This is the definition from Investopedia:
The relative strength index (RSI) is a momentum indicator developed by