011 - How To Invest In BDCs To Earn High Yields & Avoid The Risks

Traditional banks can't lend to small businesses, so they have to go somewhere else. That's where BDCs come in. 

As an incentive to serve this sector, government regulations allow BDCs to avoid paying corporate taxes if they disburse 90% of their earnings in dividends.  

That means we can make big bucks from holding BDCs as investors. We're also helping support small businesses, which is a win-win.  

But not all BDCs are created equal. Many high yielding BDCs are risky, so you have to dig into the fundamentals of a company before investing.

Drop your comments or questions for this episode on one of our posts.   

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We discussed 6 BDCs in this episode.

• HRZN invests in technology 11% yield
• HTGC 9.8% yield
• ARCC 10% yield
• MAIN 6.9% yield
• FSK 12.8% yield but recommend preferred shares instead
• PSEC 11.5% yield but recommend preferred shares instead

 If you're looking for a more detailed summary of this episode, click here.


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Ticker metrics change as markets and companies change, so always do your own research. The content in this podcast is based on personal experience and is for educational purposes, not financial advice. See full disclaimer here.

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Transcript

Welcome to Roaming Returns a podcast about generating a passive income through investing so that you don't have to wait till retirement to live your passions. 

In today's episode, Tim and Carmela talk about business development companies. You don't really hear about the stock too much in the stock realm. They're a freaking Goldmine when it comes to dividends and earning this passive streams of income. And even though they have high yields, not all of them are sketchy terrific. Let's dig into the nitty gritty so you can start earning some cash Welcome back everybody. Yeah.

Decided to get we're gonna be doing another super fun slash boring. My boring

like we did a recall Correct. We've done bonds and we've done preferred shares now here's another investment, opportunity or instrument that people can use. This one was actually really lucrative. This one pays a pretty high yield.

Like it's a lot of smack talking. But to be honest, since what Tim's told me I think this is one of the more interesting ones generally

like they're double digit yields all the time, like every now and then you'll find a couple that are below 10%, but generally, they're above 10%. The problem is, a lot of them are crap. They're their cheeks as I say, cheeks, cheeks, business development companies, or BDCs. Very exciting.

I feel like that acronym can be a little bit promiscuous.

Everyone knows, oh, the first letter of each word. So

even the first letter of each word were created

in the 1980s Congress passed something where the I forget the legislation exactly, but generally, they just wanted to do the economy was crap. I don't know if you guys remember the 80s. It was right after the 70s with stagflation and unemployment and inflation and oil wars and all that crap. So the economy suck in the 80s. So Congress did a couple of things to what they thought would jumpstart the economy and one of them was to create BDCs the other one was to create Rei T's which we will be discussing those at some point as well. Basically, they said, Hey, we need we need companies to invest in smaller businesses or businesses that are struggling right now. The banks can't do it because we we insure the banks. So how about you private people take care of that and you guys, you shoulder, all the risk and that's how it happened. Very exciting. I

actually think it's pretty cool. Because it's like a micro niche niche. Do you say niche or niche I say niche. It's funny. I got a photo by the UK front of me. Friend of me in front of me, yes.

Swirl things above the word anywhere. They're just about the E isn't Nish

micron. I have no idea like swirly

barley. Okay, basically what, what BDCs generally do is they provide money to small companies and discuss distressed companies to help them grow or to recover financially. The way that BDCs actually create them money that they can then give to these smaller companies is through IPOs or initial public offerings. If you've ever had a chance to invest in IPOs, it is a free for all and it's like the Wild West. It's very exciting. But it's

I don't usually think they're very good though because they'll shoot out the gate and then they drop off a freaking cliff

is ridiculous on the IPOs and what they make you do. The reason that we don't do it because I was just looking last week arm and it was the other one. I know you said the car is too close and went IPO last week. And both like they were priced at like I Instacart was at 21 and arm was priced at like 40 When I looked in Robin Hood to buy it and they both like were up like 100% when they actually went public. The problem with the IPOs is you can't sell within 30 days and generally what happens is the first day or two are walk out with say a week the first five business days after going public the price shoots up like 100 203% and before the 30 days ends where you could actually cash out for profits. It's generally below where you bought it for so that's why we don't do IPOs but that was side side comments. I saw a comment. What business development companies will do is say hey, we're gonna go public and we need to raise money so we can lend money out to companies to start the building on our portfolio. So they'll go out they'll go IPO their IPOs are nothing like Instacart and Arman said it's generally like $10 is what I share with without doing basically people are betting on the person running the BDC. At that point, they're like, oh, they know what they're doing. They've done previously so will will will that's it um, it's kind of like venture capitalists will invest in the business development companies because they know the person that's running it. That's actually smarter. That's one way they raise capital in other ways. They raise capitals, they'll issue bonds of their companies like we've discussed bonds previously. So like one of the Hercules capital, for example, one we'll discuss here a little bit HTC like they'll issue a Hercules bond at like 5% or 6%. And then they'll take the proceeds from that and they'll actually lend money to other companies at higher than their bond payment, but and the way that they provide them, they take all that money they raised through those two mechanisms to make money and they'll lend it out to companies at a higher interest rate than the current interest rate. That's how they that's how they make money and that's how they provide money to the companies. It's kind of like worthy when we talked about worthy worthy pays you right now 6% And I'm pretty sure their loans are like at 8% when they lend them out to those small businesses. So that's very interesting. I think I've only ever found like one or two BDCs that aren't on the public exchanges like SP or NASDAQ, or like like 98% of them are publicly traded, so they're very easy to get into very fluid.

Well, and the one since you just mentioned worthy if you hadn't listened to that episode, yet worthy is not available on public stock exchange. It's actually a private thing outside of it that doesn't fluctuate in price. So if you haven't listened to that you want something that's more like a fixed price fixed income looking to Worthy are you eating another nom nom if you guys have been listening those clicks this clicks it happened in the background. That's Tim freaking doing his nicotine pouches and nicotine fix. I didn't realize it was happening so many times in the videos. One of

the aspects of that law that I was talking about in the 80s when Congress created these was they made some arbitrary number that these companies have to invest in companies and it was 70%. They have to invest 70% of their assets, basically their money in private or public US companies with market values of less than 200 million. I know I mentioned this before, I thought it was 250. So I was wrong before and I said 250 It's 200 million. The reason they do that, if you recall is when they like when companies go to the bank, they have to have X amount and assets and X amount on their balance sheet to get larger loans and to the $200 million companies don't have the assets. They might have the cash the free cash flow, but they don't have the assets that the banks need to give out. Like, you know, we're talking 1015 $20 million loans. They don't have that so they they created this as a long Why don't want to say loophole because that it gets overused but it's like a backdoor for smaller companies to actually have access to money that they can't get to the banks.

I consider just like a little micro niche.

It's really probably like a $3 trillion niche just not a little micro niche. That's a

big migrant edge. It's like a huge, jumbo micro niche. I like it

difference between BDCs and venture capitalists I just brought up brought up venture capitalists earlier as venture capitalists can invest in larger companies and BDCs can't like I said there's there's a threshold where they can invent invest in. So they do they are similar. They they basically have the same approach. So like they'll invest in companies with their money and they'll get money in return or stocks in return. Which is then what's the word secured by their their assets and their products inventory

and their products, their tangible assets. Yeah. And

then when we get down the road we talked about Rei T's this next point is going to be awfully familiar. Because of this, this locker in the 80s the carrot that they gave them was, hey, we know you're taking a lot of risks to take to lend money to these small companies. What we'll do to scratch your back is if you pay out 90% of your profits, you won't pay any tax. So Rei T's BDCs both will pay it like they both must distribute 90% of the profits as dividends to avoid paying corporate income tax or corporate tax which saves me a ton of mine. Now, in my research, there's maybe 1010 to 15 BDCs that I would invest in and there's like hundreds out there.

Yeah, cuz a lot of them are kind of sketchy, terrific.

They because they pay such a high dividend. You have to make sure their income statements are there, their income on their earnings is is quality like it's hot like it's growing, it's not shrinking, and then you have to look at their earnings every quarter to make sure that earnings can pay the dividend that they're paying. I think part of the appeal of BDCs is that generally they pay over 10% So people are like Oh nice. I got a good return. But if you look under the hood, as they say, most of the time, they can't afford their quarterly dividend. And what they did with that happens then is when they do these bonds, which they're supposed to be using the bonds if you recall, so it's almost like a junk bond setup. They're supposed to be using the bonds that the money they collect from issuing their bonds to actually buy more companies will actually ended up doing is like use the proceeds from the bonds to pay their dividends and it's just it's

just a recipe for disaster. It

ends up they have to cut their dividend drastically and by that time, the BDC is not worth crap. anymore. So you so basically, if you're in a BDC and it cuts its dividend by like 20%, you're on the wrong one. Because what they're doing is they're actually using their bond payments to pay their dividend. They're not actually growing. If it's ran, if it's ran, well, that dividend shouldn't be a problem being paid with the proceeds from the companies they invest in.

I mean, seriously, if they have to distribute 90% of their profits, that doesn't even make any sense for the bad ones.

And another way to determine that one that you're looking at is perhaps not the greatest is to look at the leverage percentage because they actually are allowed to leverage up I think 250% I don't know the exact that's insane, exact number, but I know it's higher than the 100 it might be 120% I don't know, but they can leverage up to that if they leverage up to that you probably don't want your money in that because that means any any news? Any problem with the company anything like that. It's bad like I mean, if you're not familiar with what leveraging is, it's basically if you have a brokerage account and you have your money say you have $50,000 in your brokerage account, you buy $50,000 worth of stocks when you it's the same concept you can actually get an additional 25,000 that the brokerage will let you borrow you can actually have 75,000 Even though you only have 50,000. So what happens in the brokerage account is if shit goes sideways, they issue a margin call and then you have to pay you have to like liquidate your

50,000 you liquidate it and they take your actual cash your loan.

So like the exact same concept that what these companies do with their, with their leverage, if you should go sideways, and they actually don't have like a margin call. It's basically they just have to pay their dividends and they're

still if you're invested in that but yeah, so always

look at the leverage percentage of a BDC and I would threshold Do you I would think anything under like 75%

Okay, okay, I was gonna I was gonna guess like 7580 Maybe. I

don't think you don't want anything over 100% Because that means every obviously not more than they have and then they have to

have to stupido one

of the aspects of BDCs that are not the best is they're actually taxed as income, not dividends, and there's like a immune if you're poor like us, it doesn't matter. But if you're like well off, like I'm hoping most of you are after you get through with it with lubrication.

But the highest it goes is regular income tax. So 30

Some percent. Yeah, well, yes. But

like I said before, I always thought that I always thought capital gains was like more than your normal tax rate. It's not

very boring. So like you can actually invest in them. And if you have to know your finances, that goes back to what we mentioned previously, even when even after you know how much you can invest and how long you can invest where you still should actually monitor your finances in your brokerage account for taxation reasons, but at the

same time, if this is a passive income stream, I would still rather be not working making income and even if I have to pay regular tax rate versus actually working still, you know, you still do you still do need and that's

something that I would love. Anybody that's a tax person to talk to us about like I welcome anyone that knows the shift because I confused I think they do that purpose that we have higher accounts and everything because I don't

I don't know what what's real. If you guys are an accountant or you do an online account and you want some whatever, let's get you on here and you can get some people through. Like we'll scratch your back you scratch ours. I would love to have the information.

Now, I mentioned before, because everything sounds too good to be true about BDCs. And I thought this too when I heard it, I was like, Well, hell, they're paying like 10 to 15% How do they make money? Like I've mentioned before they they lend money out so they'll actually lend the money like the current interest rate 7% So they'll lend the money out probably at 10 or 11%. I would imagine I think these companies have to pay because they can't go anywhere else. So they can they'd be there's probably a competitive market, but they still are going to be paid. Probably four points above what they have with the current interest rate is so they'll lend the money out at like 11% and they'll get the money that and then whenever they borrow money, it's never at 11% It's gonna be at like 5%. So there's that 6% spread there. It's kind of like when you go to the bank and you give them like remember we discussed where they give you point two for your checking account. They'll lend it out of 7% It's the same concept. It's the exact same concept. But the other way they do that, that they make money. The interesting way that you know how to look for it and in the research is they'll actually buy convertible bonds in the smaller companies. And if you remember when we discussed bonds a couple of episodes ago, I forget which one we

talked about in the bonds when we've talked about the preferred shares almost

a circuit that was episode seven convertible bonds or convertible shares or preferred company is there's a maturity date on the preferred share. It'll say mature, whatever date a bond. There's definitely like every bond has a date that they'll call it back is to call the call deck. The maturity date when it matures, instead of giving you your initial investment back, say $5,000 They'll actually automatically convert that $5,000 into shares of the company. So what the BDCs do is they'll hold these convertible bonds to maturity date collect the interest for however long it is three years, five years, 10 years, however, whatever the duration of the bond is, and then they'll convert the bond money into shares of the company and then they can trade they can sell those on the open market. Whenever it's a it's a favorable time. Because they're getting them basically for free. Generally, if you'd like most of them, I know most of Basel II investment if you hope, they're like 10 percents, if you hold for 10 years, which generally they're 20 years, your bond is paid for 10 years, everything's free at that point. So that converts over at the end of 20 years, it's literally free money that you're getting, then you can just trade them shares whenever you want to. So they're really cool. I do like that aspect of it. I wish more I wish more of them did that. I mean, there's a handful that use convertible bond shares for their funding but I have a list of six that we like that we'd like but like this list, there's probably four on that I would definitely buy and there's two that I but they have really good preferred shares. Thanks excellent preferred shares the first is HRC. And it's a it's a BDC that invests in like technologies all invest in it,

which is really cool because technology I think is going to be the biggest growth sector probably for a while the way everything's gonna grow sector as well yet forever because it's just technology. And don't worry about writing these down. I know I've said this in previous episodes, there'll be in the show notes about where

you have 11% and its dividend has been rising since 2017. And it's going to continue rising because they're really well ran. So for those of you who are in this I have a full write up in the September newsletter on the website, if anyone cares.

So for those of you who there seem to be two different sectors with dividend investing that people who look for dividend growth investing and then the ones that I guess just do like dividend investing are

generally what people will do and this is where a lot of people run into problems is to focus on yield and you'll only like little that yields 60% That's good. And that's not like I would really if it was me and I knew I was going to be investing for 10 years I look for like a 910 811 whatever whatever percent a high percentage one that grows like one or 2% every year because you're gonna surpass the 15% in like two years. Yeah. And generally what happens whenever you find one that they do consistent, dividend increases. A lot of the publications call the dividend magnate the price will actually follow the dividend increase so the numerals up 10% The price of what would

have some new purchases of their shares will actually be at lower yields, while the older shares that you buy at lower prices will have like significantly higher yields. We'll have to do like a chart or something about that because it's really interesting. You can end up making 100% yield in some of your old purchases.

That's what the robots wild. Everybody's publication has, at least, except for ours has at least one or two dividend aristocrats on it and the reason they're dividend aristocrats is because for 50 years, they raise their dividend every year like what are the Coke, Pepsi? Coke is one advice.

I always see. Oh God, Microsoft. Now Microsoft

has, I mean, like, you can look, it's just Google dividend aristocrats.

Everybody talks about

like the raise of 1% every year or 2%. But you gotta find the ones that do like seven or 8% I think Verizon or ATT,

the other one that's the other one. I always hear about

it like because the 1% like in all honesty only amounts to like, one or two cents, that's jack shit.

And they're priced so high, so to us they're overvalued. Again. We're looking for that sweet spot and we like the ones that aren't really as popular. Everybody, everybody in their mom is talking about this blue chip or the aristocrat ones horizon,

HR z n. They've raised theirs by like between five and 12% every year since 2017. So that's flipped five years and it's I think they're due for an increase. Wiki cool. So that's it. I like that aspect. The one that I kind of miss is HTG sees another one that's in one of the public one of the newsletters I have a hard on for this one. I love this one. They've been raising their dividend every year since 2017. It's generally around 10%. But during COVID It was 2% I think 2019 and 2020 was like two or 3% it only it only yields 9.8%. But again, that's the whole concept is if you get it me all that for 10 years, you're gonna get like 70 to 100% dividend increase. So the 9.8 but then becomes like 18 or 20%. So yeah, your dividend percent yield grows. That's right. So it's a really good one. That's probably the best ran BDC

Yeah, it's a really good company. That's why we like it so much. And

probably the second best ran BDC that I know of I could be wrong. I'm not like an expert in VCs but I've been investing in them for like, a few years now. Is ARCC Arias capital. They had to lower their dividend after COVID but generally prior to COVID it was going up like 5% every year for I think it was like seven or eight years. It's currently at 10%. I was just I just read a report on that and I just dumped some of her mom's retirement money like five grand of her mom's retirement money into ARCC because it's projected to grow. It's a number called CAGR. It's not relevant. What's an acronym stand for? It's projected to grow at least 10% for the next five years. So the dividend if the share price is growing at least 10% The dividend probably going to go 5%. So I like that one. Then everybody's favorite VDC which I don't particularly care for because it is everybody's favorite, like you'll see like the way that we invest. It's like a It's a hybrid between multiple strategies and like the only time that I would invest in Macy's, Macy's, Mainstreet capital and ai n is if it had a severe pullback and it was severely undervalued. I do a contrarian approach at that point. I don't like it only yield 7% And like its dividend growth is menial menial at best, but everyone loves it because it's never I don't think it's ever had a dividend cut.

So yeah, there was a big call back on that one, it might have the dividend yield and go up to make it worthwhile for our criteria. We

won't go and pick one of their highest COVID It was like damn near 10% But I was invested in other stuff.

We can have the extra cash and

these next two I don't recommend buying as BDCs but buying their preferred shares. One of them actually has a current preferred share. The other one had one up until 2022 They bought they bought them all back but they'll probably have another one come out. 2024 It's just your capitals. FSK you'd like what you read that when yields 30% they're there. I know we were in their preferred share it was at 9%. And I just felt like if I have a choice between a company I'm about and a preferred share that I'm about the company I'll go for the preferred share every time

because the extra security and risk of versions of the Word version.

Yeah, believe it or not, we actually do have some risk aversion.

gscc is the last one it currently has 11.5 There, I think their preferred one now is 8.5. Around there, but the reason that I would recommend piece psec if you like, what you read in the financials is it's a monthly and like, I know I went over that before. Your capital actually grows faster with monthly dividends

and we like it too, because you can make changes because

I'm pretty sure this one's going to actually have a dividend cut or their earnings is going to miss and it's going to have shit news and the stock price is going to reflect the shit news and it's gonna go down but the reason that I mentioned it in that episode was it I forget, whatever. Might have been preferred ones but monthly ones I liked because when there's bad news, you can you can actually get out of them. The second you hear the bad news for like a 5% loss, but by then you should be up because of the high yield. And you'll still get cash for that month.

Yeah, you'll still be eligible for the next dividend whereas quarterly you won't. And all the other BDCs we talked about except for real Yeah, actually all the other BDCs that we talked about rising

horizons 11 cents a month and it's great it's I really like horizon actual we have that I have that in my test account. We've had it in her mom's retirement retirement account. We had it in our brokerage account. It got overpriced in the brokerage accounts. I sold it for a pretty good game while collecting 1% per year AP why it's at a buy point right now. But I'd like I if I was gonna dump money into the US that was actually split money between HTC and ARCC. And just call it a day because then you'd be getting 10% yield to really good BDCs

So sounds like a good plan to me.

So we touch base on BT C's any questions for real just email me if you have any idea like you have a BDC you're looking at and I didn't mention it emailed me the ticker and I'll give you like a rundown if we think it's a breakdown I look at the valuations and everything. There. them an REI T's get a bad rap because they're high yield and like the mainstream media just bad. They should talk high yields all the time. I really feel like that over like 7% is risky, you're you're wasting your money and blah blah blah. And

I really think that's intentional because there's you just have to put a little bit more work in due diligence and doing your research to make sure you're getting into some quality ones to minimize your risk. But we can see why the general public's doesn't know any better could lose their butts and some of the bad ones

but you only lose your money if you sell and like generally speaking you're not gonna lose. But 5 million a bad year maybe 7% And you should be making more than that in the yield like these are yielding like 10 or 11%. So even if you have a bad year, you're still making 4% So there's no reason to actually panic so

like small businesses are starting to take off in general so to me BDC seems like a really safe like future projected growth sector

unless like I never actually broke that down. And in other podcasts the reason that I like stuff that yields more than 10% is if you have a really, really crappy year, like the worst year and something goes down say 20% your dividend. Your yield is going to cover like more than half of that loss. Yeah.

Especially if it doesn't really cut the dividend reinvestment.

So while you're covering half of your loss, and then what happens is you're buying more shares at a lower price. So when we enter the next bull market, you're actually going to be up. I don't know I'd say probably 25% When your share count, and you would have just stayed flat. A lot of examples

about that over the course of when I figure out how the heck we're going to show some of these because of the month of August was downwards or mad horribles

of dumpster fire. So

as as I actually tracked some of this stuff, you'll start to see if you keep following us I'm gonna do try to do really good with showing you guys how when those price reductions happen, how that increases share quantity, and then when things go back to like breakeven price wise, how you actually ended up way up because you have higher share quantities.

So give me a message if you accumulate more shares at a lower price and it goes back up to the previous price you're going to have more money Yeah, but in our case, you're gonna have a lot more money, a lot

more money, a lot more dividends because it's per share. Everything goes

out, it always goes up. So that's as long as as long as it always goes up. Yeah,

the long run, so long as the entire world doesn't implode here. Basically, stock market always goes up. I think Buffett's quoted that I think every one of the big investors

will argue and a lot of people always ask what happens when the market doesn't go up? And I my response is, if the market goes down and it doesn't go back up the worst, there's worse problems, then your

money's gonna matter at that point.

Hopefully you have the skills necessary to survive. You have a plan of how you're going to survive because the world is going to add Yeah,

that's kind of how we look at it. Like my brother's really hardcore with the whole doomsday prepper hoarding gold bar type thing. And it's like, you can have that mindset, but like, Let's

go worse and like bring to the world well,

that's that's exactly what I'm saying. Like, what are you gonna do club somebody with it? You're not going to turn into bullets and shoot somebody you're not going to shave off like metal flakes to freakin bile over bread from somebody. I don't know. Like, it doesn't really seem like

an I get probably I'm gonna say a quarter. quarter to a third of the articles that I get a week from all the different authors that fall into publications is like doomsday shit like that. They're like, Oh, the dollar is going away. Oh,

I know. There's so much there's so much fun. Well, the dollar technically did go away they completely converted or was it July I think we went to a complete digital system and they haven't really talked about as all these doomsday people that have been talking all year and all last year about it like the world didn't implode, just like y2k Didn't happen. All those

people remember y2k. That was like, Dude, I was. I was in college. I went I started college in 94. So I was literally in grad school with 99. And it was it was like, everybody's freaking out. It was the end of the world airplanes were gonna fire bombs are gonna be fired.

All the electronic systems are gonna like glitch out because the thing would roll over you that wasn't seen like people were freaking out and again, these panic they call FUD fear, uncertainty and doubt people get so hyped up with the Fudd I mean, we don't think that it's a bad thing, dude, diversify in tangible gold and some of those commodities if you want to. But from our perspective, personally, like if we're going to be living in a van and we're going to be minimizing our items like I don't want to be toting around heavy ass gold and sucking our gas mileage. We'll have my solution

to the gold and silver. I will be presenting in the October issue newsletter on the website. Okay. So that's something that they might want to read about it. You actually don't have the gold and silver, but you trade on the gold silver exchanges and you get dollars instead of gold silver, and

there's a lot of controversy on that but we'll go over it in that episode. But do you have anything else to say about BDCs Oh,

they're awesome. All right, guys,

so hopefully we didn't I think

the next episode we'll do next week will be Rei T since we're on one in a row.

I might sprinkle a couple of shorter ones in here and there to keep things fresh because some of these asset ones are a little mind overwhelming till you start getting your feet wet and you start repetitively here and this stuff will run over and start picking things up. But once you get a grasp of everything, it's generally fairly simple. REITs REITs I love rates. They're my fav, but I do agree, because we do not prefer tangible real estate. It's just too much of a pita if you listen to the first episode, no thank you.

There's like there are so many different, like there's a rate for everything. It's all good. We'll

get into that in that episode because they're actually really, really cool, really, really diversified even in themselves. So as we wrap up, Tim has been putting so much effort into his newsletter subscriptions. He just like came in here last night and was like I think I'm gonna just gonna give everything away for free. He's like, I don't even care anymore. He's like, people aren't doing this. He's like these paid subscriptions I'm on. He's like, they're not really telling people anything, was

like what happened? I have to renew. And I forget and like so they'll just doing my account. I'm like, well there's $100 Interesting. Oh, there's 229 Interesting. I don't mind paying the price if the information I receive is worth it. And generally I don't really receive too much specific information what I receive is babbling about the Merten, the market and babbling about sectors. Like utilities or oil and like I want specifics and then every thing that they give me has like their portfolio. I don't care what their holdings is, tell me like what survive what sell what the yield and like they don't really do all that I put so much information into I have a weekly email that goes out every Monday that generally has investment ideas that I don't cover in the podcast or the newsletter. It has like the 10 highest yielding stocks and funds and everything for the upcoming week. If there's been bonus dividends, all include those in the end, especially special dividends or bonus dividends, whatever you want to call it. And

and that's what let you guys know. So if you're considering those things to get in before the ex dividend date, you actually

mentioned MSCI in the day this week, I think it was I think it's the 21st I have a special dividend coming out of like 48 cents or something like that I forget.

So if you get under the email subscription, I give

so much information out because I want everybody to succeed in whatever they want to do and to succeed in whatever they want to do. Sometimes they require money so I'd like I don't think I want to charge for it. I don't I don't care about the money. I'm doing the research anyways.

Yeah. And we just want to teach you guys and put it out there. So

we have a website that has newsletters.

I'm working on uploading those in a way that makes sense. But if you can sign

up for the emails through some of the other I've should have so you can either go on the website

and sign up through one of the email subscription things or you can just go to our Instagram and click on the bio link it's I just added it as the top thing if you want to get involved. We do it on Mondays so that you can read through it because when I used to go to work Mondays, I didn't feel like doing jack squat after the weekend. So I would usually just sit there and try to like plan my screws so that's why we picked Monday, Monday's

there's not a lot of dividends, X dividends and special events offered on Monday. I mean it's

probably give you time to process it gives you something to look forward to for your work week when you're not exactly looking forward going to work because I used to have an office job so I would actually sit there and read something I wanted to read. That wasn't me personally. Sorry ex boss, people if you're listening to me. I'm pretty sure everybody does. Sorry, not sorry. Sorry. Sorry.

We're the way I apologize. I'm sorry that you felt bad about me doing that.

And then what will do to in those email newsletters is will usually give you like a hint at whatever the heck we're going to end up doing in the podcast today or the Tuesday after the after the podcast or the newsletter. We have a lot

of information like I think I was looking through my subscriptions. I think we have the most specific information of any of the publications that I have subscribed to. I want to be transparent like what we hold like we have HRC and we have HTC we've held main we've held a PSE p s EC like I will tell you what we've held I will tell you what we're currently holding. I don't have like a portfolio listed yet. We're working on that.

And they will give you price ranges of when to buy like what to buy in.

For most of this is don't buy above a certain price and like I do include that like anytime I have a recommendation or any information about something I give you like don't buy above this. Yeah.

So like we're real transparent. Like we want to be truthful. We do not want to scare you into making decisions we want to give you guys actually true. It's

a pet peeve of mine trust. Like I just commented on that. I forget what it was in the news, anyway. Oh my god That pisses me off whenever they basically prey upon your fear to make you want to buy something that you don't need to buy because of your bike. Like I know like last week they were like you need to buy this this this this. Everything they listed was at least 25% overpriced and so I think the reason they want you to buy that, if I had to speculate, I don't know if it's 25% over price and they have like say 100,000 subscription subscribers or 100,000 people are going to flood the market and buy it at 25% over price so they could sell it for a 25% gain. I mean,

yeah, I don't like when the big audiences use their followers this is only a

dozen doesn't make sense why they're recommended ship that doesn't need to be recommended unless it's just to make profit because what that mean like generally what they're off what they're saying is valid like it's a good thing to be in, but the price is wrong. So

will always tell you and we won't manipulate you guys like that because we're not trying to use you guys to fluctuate prices. We're just actually trying to help you guys make more money so that you can generate passive income so the traveling,

trying to get some merch in the merch store it's gonna be pretty sick. Look at

what actually I found this thing that we're looking at, I got to figure out which freaking behind paywall thing I was listening to that was talking about. It's kind of like an Amazon where we have a platform where you can buy stuff you normally already buy and the proceeds or like the difference in I guess the affiliate whatever ends up going towards us so you don't have to buy anything. You wouldn't already be buying. And it incentivizes you to buy it through us to help,

I guess donate to whoever we want to donate, to

help us donate but to help us put money back in the stream because it's like we have to pay to host these podcast podcasts we have to pay to to do the email list we have to pay to do the website and all that other stuff. So it's like we're just trying to cover the cost of everything at this point. Stop clicking your freakin Nom nom nom nom. You sound like me when I drink. We're done. Alright guys, so with this guy. Thanks for tuning in. We will see you in the next episode.