Desperately Seeking Yield Through Equities Part 10: The Importance of Context and Price
By Philip Mause: We have reviewed a number of investments in the equity sector that produce attractive dividend yields. Many of these are "special" or "unusual" equities in the sense that they are subject to peculiar regulatory restrictions (Business Development Companies - BDCs), are subject to special tax rules (Master Limited Partnerships - MLPs), are subject to price regulation (public utilities), or are required to pay out large percentages of earnings as dividends.
- Context - Many investors see the world as consisting of stocks, bonds and cash and allocate among the three. Some of the "special' investments we have been discussing may not even show up on their radar screens. Stepping back a moment and viewing the universe of investment opportunities, it may make sense to think of some of these investments as occupying a space in the investment spectrum somewhere between bonds and equities. This is especially true of BDCs and mortgage
- Original article
- Login or register to post comments

