BDC Stock Recent News

My core strategy focuses on high-quality, durable income streams, which are now benefiting from the current market conditions favoring value/income-based investing. Income investors may finally outperform growth-tilted indices due to macro-level factors muting growth expectations and emphasizing quality and defense. Yet, we have to still be careful of not falling into value traps and securities that have a thin margin of safety on their dividend fronts.

NEW YORK--(BUSINESS WIRE)--Golub Capital BDC, Inc., a business development company (NASDAQ: GBDC, www.golubcapitalbdc.com), announced today that it will report its financial results for the quarter ended March 31, 2025 on Monday, May 5, 2025 after the close of the financial markets. Golub Capital BDC, Inc. will host an earnings conference call at 12:00 p.m. (Eastern Time) on Tuesday, May 6, 2025 to discuss its quarterly financial results. All interested parties may participate in the conference.

We take a look at the Q4 numbers from the Barings BDC. Barings BDC trades at a 15% discount to book, offers a 12.9% total dividend yield, and has a stable NAV over the last few years. Net investment income fell slightly over the quarter; base dividend coverage remains strong at 108%.

Dividend Cut Likely – In my opinion, SCM risks a dividend cut as NII fell below its $0.40 payout, with a 100%+ payout ratio raising sustainability concerns. Rising Credit Issues – SCM's credit quality declined, with non-accruals rising to 5.4% in 2024, causing a 19% NII drop and $15.7M in losses. Overvalued vs. Peers – Despite the risks, SCM trades at a premium on NAV & NII multiples; sell recommended.

Nuveen Churchill Direct Lending delivered a solid performance in 2024, growing both net and total investment income year-over-year despite a slight decline in the bottom line per share. NCDL's portfolio saw significant growth with $950 million deployed, focusing on first-lien investments and maintaining strong credit quality with minimal non-accruals. Despite a slight increase in leverage, NCDL's balance sheet remains robust, with no near-term debt maturities, strong liquidity, and strategic share repurchases.

Lower interest rates negatively impact BDCs' net investment income due to the floating rate nature of their loans tied to the Fed Funds rate. A typical BDC portfolio, with a debt to equity ratio of 1.0x, cannot fully offset lower rates through floating leverage. However, there are some ways to manage this situation.

Due to economic uncertainty and a disappointing quarter, I am downgrading Golub Capital BDC from a buy to a hold. Despite misses in the top and bottom lines, GBDC's credit rating upgrade and higher originations are positive signs for future performance. Management expects improved net investment income from higher originations and restructured borrowers, but economic volatility remains a risk.

Chicago Atlantic BDC, Inc. (NASDAQ:LIEN ) Q4 Earnings Conference Call March 31, 2025 8:30 AM ET Company Participants Tripp Sullivan - IR SCR Partners Peter Sack - Chief Executive Officer Martin Rodgers - Chief Financial Officer Dino Colonna - President Conference Call Participants Pablo Zuwanich - Zuwanich Associates Operator Good morning, and welcome to the Chicago Atlantic BDC Fourth Quarter 2024 Conference Call. All participants will be in listen-only mode.

BDC dividend investors, who want to avoid seeing their portfolio current income streams shrink have to be extra careful when picking BDCs. Largely due to unfavorable sector-wide conditions, many BDCs have already cut their dividends (just as I predicted). In my view, there are many more in line.

NEW YORK, March 31, 2025 (GLOBE NEWSWIRE) -- Chicago Atlantic BDC, Inc. (“LIEN” or the “Company”) (NASDAQ: LIEN), formerly Silver Spike Investment Corp., a specialty finance company that has elected to be regulated as a business development company, today announced its financial results for the fourth quarter and year ended December 31, 2024.