5 HDO Model Portfolio Holdings Raise Their Dividends

Our High Dividend Opportunities (HDO) service at EWT has had five model portfolio holdings increase their dividends this earnings season.

Ares Capital Corporation (ARCC) came out swinging at earnings, with rising book value, record levels of originations, and a dividend raise.

Capital Southwest Corporation (CSWC) raised its dividend for the third time this year, increasing its regular dividend to $0.44, while maintaining the $0.10 special dividend. If we have said it once, we have said it a hundred times, 2021 is creating ideal conditions for Business Development Companies. Long-term interest rates are low, allowing them to borrow very cheaply, especially BDCs with an investment-grade balance sheet.

BrightSpire Capital (BRSP) raised its dividend another 14% over the last quarter to $0.16/share, which is also the third dividend raise in Q2. HDO remains very confident in BRSP's new management team and are pleased that they are doing exactly what they said they would do. The dividend will continue to rise quarterly as BRSP deploys its remaining cash.

EPR Properties (EPR) reinstated its dividend at $0.25/month. Management is now looking for opportunities to deploy the $500 million in cash that is on its books. As EPR deploys that capital, HDO expects to see future dividend increases.

Finally, Eaton Vance Tax-Advantaged (ETO) increased its dividend by 25%. ETO will now distribute to its shareholders $0.1792/share on a monthly basis. Monthly dividends mean monthly income and monthly opportunities.

HDO, the #1 service for income investors and retirees, offers a "model portfolio" targeting a yield of +9% using its "Income Method" strategy. Learn more here.

Rida Morwa is the lead analyst for High Dividend Investing (HDI), currently offering a 15-day free trial.