There are some amazingly creative ways to build a business in this country. This opens the floodgates for income hungry investors seeking unique ways to book profits. One of the most unique, high dividend paying companies that I have ever discovered isn’t a REIT or even a MLP. It’s an alternative finance company that provides taxi licenses in New York City.Believe it or not, this is a huge business with the company funding nearly $3 billion of taxi licenses AKA medallions since its founding.

This business provides financing for taxi medallions or licenses that allow Taxi’s to operate in New York City. You see, banks generally will not loan money to a taxi cab business so this company stepped in to fill the void.

The company is called Medallion Financial (TAXI). It has been in business since 1937.

Medallion is in the business development sector but is different due to the maturity dates of its loans. You see, most taxi medallion loans mature in 2 to 3 years rather than long term loans like most BDC’s. This quick turn over of loans and high interest rate make the company among the best long term dividend stocks.

The company has been extraordinarily successful recently with EPS growing at an average annual rate of 300% over the last 5 years.

TAXI has expanded into the consumer lending and fine art lending businesses. Specializing in watercraft and Recreational Vehicles, the company is expanding its niche.

Charging an average of 16% for its loans, combined with the high turnover of rapidly maturing loans creates a cash generating machine for the company. Not to mention the fact that New York City does not issue any new taxi medallions. This means that any new taxi drivers or companies are forced to purchase medallions from existing firms. In turn, this keeps the price of the medallion assets high and maintains the value of TAXI’s portfolio.

This incredible niche allows the company to currently pay an outstanding 7.2% yield. Shares have fallen into our Value Buy Zone between $11.00 and $11.50.