BDC Stock Recent News

It is very likely that for most BDCs, the earnings have peaked and the direction of travel is unfavorable. There are both structural and transitory headwinds that put a pressure on earnings, rendering the dividend coverage levels potentially unsustainable. In this article, I share three pillars that have to be in place in BDC dividend investor portfolio to mitigate the risk of experiencing a cut in their income streams.

We take a look at the Q2 numbers from Barings BDC. The stock trades at a 12% discount to book and a 10.4% dividend yield. The company's portfolio quality remains fairly strong, with low non-accruals and modest net realized losses.

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 saw a 1% total return last week but ended August down 2%; six of our eight holdings were top performers. Private lenders, including major BDCs, are injecting $275m into Pluralsight, converting existing debt to equity.

Palmer Square Capital BDC was made public just back in January 2024. Even though there is a limited track-record for PSBD as a publicly traded BDC, the fundamentals are already there to support a bullish thesis. In this article I elaborate on the key strengths and some of the drawbacks of PSBD.

MSDL delivered a strong Q2 with a 3.2% total NAV return and a rise in both NAV and NII. The stock trades at an 11.6% yield and a slight discount to book. The valuation rose post-IPO but dipped after the first lock-up expiry; another potential entry point may arise in October.

Belden (BDC) could be a great choice for investors looking to make a profit from fundamentally strong stocks that are currently on the move. It is one of the several stocks that made it through our "Recent Price Strength" screen.

The BDC sector faces headwinds such as spread compression, potential Fed rate cuts, and increased corporate distress. Despite these challenges, BDC market indices like VanEck BDC Income ETF and Putnam BDC Income ETF show only minor corrections. Yet, the small, illiquid nature of the BDC sector means ETFs may not fully capture overall sector dynamics.

Prospect Capital is a large investment grade business development company. Its bonds yield around 8% while other large-cap BDC bonds with the same credit rating are yielding around 5.5%. To add to the undervaluation, PSEC has by far the lowest leverage among its large-cap BDC peers, making it extremely safe.

Oaktree Specialty Lending had a disappointing quarter with a drop in NAV and investment income, but still eked out a positive total NAV return. The management fee was reduced permanently to 1%, which should drive a 6% rise in net income. The NAV fell by 2.8%, marking the third sizable drop in a row and the eighth drop in the last 10 quarters.

ST. LOUIS--(BUSINESS WIRE)--Belden Inc. (NYSE: BDC) (the “Company”), a leading global supplier of network infrastructure and digitization solutions, announced today it will host its 2024 Investor Day on September 12th at 10am ET from Belden's Customer Innovation Center in Chicago. The event will feature presentations and a question-and-answer session with Ashish Chand, President and CEO of Belden, and other members of the Company's senior leadership team. Attendance at the in-person live event.