BBDC Stock Recent News

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Barings BDC's dividend appears safe for the near-term, but declining financials and economic uncertainty warrant caution for income investors. Recent earnings showed net investment income fell below dividend coverage, with credit quality and leverage metrics also weakening. Despite attractive discount to NAV and defensive portfolio moves, I recommend waiting for financial and NAV stability before buying.

Recent Fed actions and economic data suggest a material risk of further interest rate cuts in the near to medium term. Lower rates threaten BDC dividend sustainability, even for solid names like ARCC and BXSL, as shown by recent NII declines. In this article, I discuss two high-quality BDCs (not ARCC and BXSL), which investors should consider divesting if they also assume an interest rate cut scenario as a base case.

Barings BDC is a well-established vehicle with one of the longest track records in the sector. The portfolio quality is solid, and certainly better than what could be implied from the 20% discount to NAV. Yet, the base dividend seems unsustainable or at least with no material margin of safety.

We take a look at the action in business development companies through the third week of May and highlight some of the key themes we are watching. BDCs have rebounded strongly, with most lenders up for the month and sector valuations approaching long-term averages, signaling renewed investor confidence. Key income headwinds from Fed rate cuts are behind us; leverage and lending spreads are rising, supporting net investment income (NII) stability.

Start Time: 09:00 January 1, 0000 9:22 AM ET Barings BDC Inc. (NYSE:BBDC ) Q1 2025 Earnings Conference Call May 09, 2025, 09:00 AM ET Company Participants Eric Lloyd - Chairman and CEO Matt Freund - President Elizabeth Murray - CFO and COO Bryan High - Head of Global Private Finance Joe Mazzoli - Head, IR Conference Call Participants Operator At this time, I'd like to welcome everyone to the Barings BDC Inc. Conference Call for the Quarter Ended March 31, 2025. All participants are in a listen-only mode.

Barings BDC (BBDC) came out with quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.28 per share a year ago.

CHARLOTTE, N.C.--(BUSINESS WIRE)--Barings BDC, Inc. (NYSE: BBDC) (“Barings BDC” or the “Company”) today reported its financial and operating results for the first quarter of 2025 and announced that the Company's Board of Directors (the “Board”) declared a quarterly cash dividend of $0.26 per share. Highlights   Three Months Ended Three Months Ended Income Statement March 31, 2025 December 31, 2024 (dollars in millions, except per share data) Total Amount Per Share(1) Total Amount Per Share(2) N.

BBDC provides investors with a 12% dividend yield, but has underperformed compared to other BDCs, which results in a "HOLD" recommendation. The stock value of BBDC has dropped substantially since 2013, which resulted in unimpressive total returns, even though the company maintained steady dividend payments. The company faces two major issues: its debt-to-equity ratio of 1.22x and its stock price discount relative to NAV.

Barings BDS experienced a significant sell-off due to Trump's tariffs, impacting the entire BDC sector and leading to valuation drops. I recommend focusing on top-tier BDCs like Blackstone Secured Lending Fund and Morgan Stanley Direct Lending Fund due to their defensive portfolios. BBDC's portfolio shows declining credit quality and higher non-accrual risks, making it less attractive compared to peers with higher first-lien debt exposure.