In today’s volatile market, investors are always on the lookout for affordable stocks that offer compelling dividend yields.
Unearthing those opportunities can be quite the challenge, but Benzinga found a stock that fits the bill: BlackRock Capital Investment Corp (NASDAQ:BKCC).
This $3.36 stock boasts an impressive 11.9% dividend yield, providing investors with an affordable entry point and the potential for attractive returns.
BlackRock Capital Investment specializes in offering financing solutions to middle-market companies. Its portfolio includes senior and junior secured, unsecured and subordinated debt securities, loans, and equity securities.
Check out Benzinga’s dividend calendar.
As a key player in the alternative financing space, BKCC is well-positioned to capitalize on the growing demand for diverse financing options.
So how much BKCC would an investor need to own to yield say, $100 per month in dividends?
For an investor interested in knowing how much stock they’d need to own to yield $100 per month, they would have to multiply 100 by 12, with the 12 being each month in the year.
With $1,200 being the result, the investor would then divide 1,200 by BKCC’s dividend yield, which is 11.9%.
It would look something like this: 1200/0.119
With that being said, an investor would need to own $10,084, or 3,001 shares of BKCC to yield $100 per month in dividends.
Conversely, if the investor wanted to yield $200 per month in BKCC dividends, they would need to own $20,166.72 or 6,002 shares.
Though it should be known that the dividend yield can change on a rolling basis as the dividend payment and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
BKCC price action: Shares of BKCC are trading 0.3% lower Wednesday to $3.36, according to data from Benzinga Pro.
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