Beyond 10% Yield: Using The 'Circle Of Virtue' To Build An Income Fortress

Rida MorwaInvesting Group LeaderFollow5ShareSavePlay(10min)Comment(1)SummaryRegulated Investment Companies or RICs (BDCs, REITs, and CEFs), avoid corporate-level taxes by distributing at least 90% of taxable income as dividends.Trading above NAV (Net Asset Value) allows companies to issue new shares and invest the proceeds at a profit, growing the "pie" for everyone.Credit Quality Resilience: Despite a soft economy, top-tier BDCs are maintaining non-accrual rates well below 2%, outperforming traditional banks.You can often find better safety in a 10% yield from an RIC than a 7% yield from a struggling C-corp.Looking for more investing ideas like this one? Get them exclusively at High Dividend Opportunities. Learn More » CalypsoArt/iStock via Getty Images Co-authored with Beyond Saving As investors who focus on the high-yield space, we often find ourselves investing in companies that distribute a large portion of their earnings. The company makes money and then distributes most, if not allThis article was written byRida Morwa125.29K FollowersFollowRida Morwa is a former investment and commercial Banker, with over 35 years of experience. He has been advising individual and institutional clients on high-yield investment strategies since 1991. Rida Morwa leads the Investing Group High Dividend Opportunities where he teams up with some of Seeking Alpha's top income investing analysts. The service focuses on sustainable income through a variety of high yield investments with a targeted safe +9% yield. Features include: model portfolio with buy/sell alerts, preferred and baby bond portfolios for more conservative investors, vibrant and active chat with access to the service’s leaders, dividend and portfolio trackers, and regular market updates. The service philosophy focuses on community, education, and the belief that nobody should invest alone. Learn More.Analyst’s Disclosure: I/we have a beneficial long position in the shares of AGNC, CSWC, MAIN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Beyond Saving, Philip Mause, and Hidden Opportunities, all are supporting contributors for High Dividend Opportunities. Any recommendation posted in this article is not indefinite. We closely monitor all of our positions. We issue Buy and Sell alerts on our recommendations, which are exclusive to our members.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.