BBDC Stock Recent News

Investors love dividend stocks, especially the ultra-high-yield variety because they offer a significant income stream and have massive total return potential.

A rise in financing demand across sectors on the back of economic resilience and relatively low rates will support companies like Main Street Capital, Barings BDC and Crescent Capital amid weakening asset quality.

BBDC, NE and PFC made it to the Zacks Rank #1 (Strong Buy) income stocks list on February 4, 2025.

Inflation erodes purchasing power, making high-yield investments crucial for long-term financial goals; savings accounts and CDs may not suffice. That's why I prefer picking stocks that pay yields well above inflation and/or are poised for robust dividend growth. In this article, I highlight two such picks that are undervalued, offering income investors high income and capital appreciation potential.

Many high quality BDCs trade at premium or at NAV. To enhance the potential return profile, investors have to look at the discounted BDC space. It does not make sense to invest in higher risk BDCs that trade at tiny discounts. The additional risk and reward mix is not that favorable.

While most of Wall Street focuses on large and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy.

Investors love dividend stocks, especially the high-yield variety, because they offer a significant income stream and have massive total return potential.

I am downgrading my rating on Barings BDC due to a slight uptick in non-accruals, lower earnings, and weaker dividend coverage. Despite a 10.7% dividend yield and a well-diversified portfolio, I expect no sizeable dividend raises as net investment income is projected to decrease. The recent 5% price drop presents an entry point, but the NAV decline and higher non-accrual rate raise concerns about future performance.

CHARLOTTE, N.C.--(BUSINESS WIRE)--Barings BDC, Inc. (NYSE: BBDC) (“Barings BDC” or the “Company”) announced today that it will report its financial results for the third quarter ended September 30, 2024 on Wednesday, November 6, 2024, after the market closes. Barings BDC, Inc. has scheduled a conference call to discuss its third quarter 2024 financial results for Thursday, November 7, 2024, at 9:00 a.m. ET. To listen to the call, please dial 800-715-9871 or 646-307-1963 approximately 10 minutes.

Barings BDC offers an appealing 11% yield and is undervalued, making it a solid choice for passive income investors. Improved credit trend, lower non-accrual ratio, and a 25% YoY increase in net investment income enhance dividend safety. The stock trades at a 15% discount to NAV, presenting a potential upside if credit issues remain managed.