Business development companies (BDCs) are gaining popularity for their high dividend yields, with some offering over 12.9%. They are particularly useful for retirees and middle-market companies. However, investors need to be cautious of BDCs too focused on one sector or burdened by high management fees. For example, the 16.6%-yielding TriplePoint Venture Growth BDC Corp. has seen a 15% total return loss this year. In comparison, a tech-focused CEF like Columbia Seligman Premium Technology Growth Fund (STK) has outperformed, offering a 5% dividend with no cuts and trading at a discount to NAV. This makes STK a safer alternative for investors looking for high yields with lower risk.

Read more at Nasdaq: 2 Big Dividends (Up to 17%) That Are Way Too Good to Be True