Where I'm finding good yield: Ladenburg Thalman's Phil Blancato

Investors are searching for yield in this market, and Ladenburg Thalmann Asset Management CEO Phil Blancato is no different.

One area that is getting exciting is preferred stocks, he said in an interview with CNBC's "Closing Bell" Thursday.

"You look at the issuance there, it is increasing now pretty rapidly. You're getting solid yields and you get a dividend that is tax effective."

In fact, right now they are currently yielding roughly 4 percent above Treasurys, Blancato said.

For the "right kind of speculative investor," he suggests business development companies, or BDCs, which have a floating rate debt and are "somewhat secure."

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BDCs are specialized closed-end investment funds that were created by Congress in 1980 to enhance capital access for U.S. middle-market businesses, and offer the general public private equity- and venture capital-like returns. Legislation is currently pending that would allow them to be able to lend more to small businesses.

Legislative issues aside, you get a high-quality yield at quality debt," said Blancato. "You can double or triple your yields over the 10-year and you get a little cushion to wait around for things to come to you."

He particularly likes Solar Capital and Pennant Park Investment in that space.

Meanwhile, he would stay away from utilities, calling them too boring, too defensive and too rich. However, he "loves" consumer staples.

"You've got a good labor market, you've got cheap lending," Blancato said. "Buy the consumer stocks. Enjoy the ride. You'll make your money."

— CNBC's Laura Petti and Reuters contributed to this report.

Disclosures: Ladenburg Thalmann owns a position in Solar Capital. Ladenburg Thalmann makes a market in Pennant Park.