BDC Stock Recent News

Part 1 of this article compares GBDC's recent quarterly change in NAV, quarterly and trailing 12-month economic return, NII, and current valuation to 14 BDC peers. Part 1 also performs a comparative analysis between each company's investment portfolio as of 3/31/2024 and 6/30/2024. This includes an updated percentage of investments on non-accrual status. I also provide a list of the other BDC stocks I currently believe are undervalued (a buy recommendation), overvalued (a sell recommendation), and appropriately valued (a hold recommendation).

We take a look at the action in business development companies through the third week of August and highlight some of the key themes we are watching. BDCs delivered a 2% total return on the week, starting to climb out of the early August drawdown. A recent Bloomberg article on Prospect Capital focused on cash generation and preferred stock issuance.

We initiate coverage of business development company Nuveen Churchill Direct Lending Corp. It trades at a 13% dividend yield. Portfolio quality has remained stable, with low non-accruals and a focus on first-lien loans. We added a position in the stock given its portfolio quality, resilience and above-average valuation-adjusted performance.

We take a look at the Q2 results of the BDC Bain Capital Specialty Finance. BCSF is part of Bain Capital Credit's private credit umbrella and is overweight Defense, Tech, and Business Service sectors. BCSF trades at an 11.5% dividend yield and a 12% discount to book, with stable NAV and strong income dynamics.

Goldman Sachs BDC stock price dropped, now at an 8% discount to book value. Factors for decline include U.S. recession concerns and increase in non-accruals and investment losses. Despite credit quality deterioration, the dividend is well-covered, making it a potentially beneficial purchase at a discount.

Sixth Street Specialty Lending is a BDC investing in US middle-market companies with enterprise values of $50m to $1B and EBITDA of $10m to $250m. TSLX has a defensive investment approach with a diversified portfolio, first-lien debt focus, and reasonable non-accruals. Investors should expect increased stock price volatility and higher non-accruals in the upcoming quarters.

Here is how Belden (BDC) and Ferguson plc (FERG) have performed compared to their sector so far this year.

We provide a Q2 update of the business development company Fidus Investment. Q1 adjusted net income fell. However, the company continues to deliver strong results. Fidus Investment offers a low valuation compared to its performance and is a good opportunity for diversification in the BDC market.

Amid the AI boom, data centers are sending and receiving so much data that they are embarking on “the largest expansion of the internet in our lifetime,” Lumen Technologies (NYSE: LUMN ) Chief Technology Officer Dave Ward recently said, according to Fierce Network. That makes the idea of finding the best fiber stocks much more appealing.

Business Development Companies or BDCs offer great financial characteristics for high income seeking investors. Lately, there has been a lot of chatter around BDCs struggling and experiencing negative results due to the weakening economy and lower interest rates. While this could be true for selected BDCs, it is a myth that the entire BDC sector will experience such consequences in a systematic manner.