BBDC Stock Recent News

Buying a business development company (BDCs) is kinda, sorta like investing like a venture capitalist (VC).

We take a look at the action in business development companies through the second week of December and highlight some of the key themes we are watching. BDCs had a good week with a total NAV return above 1%, the best in the broader income market. Price targets for securities may not be reliable indicators for buying decisions.

We discuss various aspects of BBDC, including its holdings, earnings, new business, dividends, taxes, insiders, profitability, leverage, debt, liquidity, and performance. Analysts' price targets and valuations are also mentioned. We rate BBDC a Hold. While its 23% discount to NAV is attractive, we're leery of its lower amount of sponsored investments.

Barings BDC is a business development company that has reported strong quarterly performance and is expected to sustain growth through new investments. The company reported an investment income of $70.84 million, up 25.82% compared to $56.31 million in Q3FY23. Assuming BBDC chooses to keep paying its $0.26 quarterly dividend, it translates to an annual payout of $1.04 or an 11.97% dividend yield.

Barings BDC focuses on issuing private credit for middle-market businesses with a disciplined approach to asset selection. The portfolio is well-diversified, with a bias toward finance, insurance, tech, and service-oriented businesses. BBDC primarily relies on sponsor-backed investments but also allocates a portion to speculative deals with relaxed financial conditions. About 33% of the portfolio is exposed to riskier segments than second lien.

Barings BDC offers a high dividend yield of 12.01% with strong net-investment income coverage and potential for further dividend increases. The transition to a greater percentage of senior secured lending enhances earnings stability and could attract a broader base of income investors. The portfolio consists mainly of senior-secured debt with a suitable interest coverage ratio, reducing the risk of defaults in the face of rising interest rates.

Please, take that finger off the Sell button. This is the best buying opportunity since the bank failure panic in March.

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 quarter ended September 30, 2023 on Thursday, November 9, 2023, after the market closes. Barings BDC, Inc. has scheduled a conference call to discuss third quarter 2023 financial results for Friday, November 10, 2023, at 9:00 a.m. ET. To listen to the call, please dial 877-407-8831 or 201-493-6736 approximately 10 minutes prior to th.

We take a look at the action in business development companies through the last week of August and highlight some of the key themes we are watching. BDCs had a good week with a 2% total return and finished August with a small loss. Investors continue to worry about various types of dilution from BDC share issuance.

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