Why BDCs Is My Favorite Sector To Invest For Durable Income
The BDC segment is my favorite area to invest for high and durable income. In fact, my highest-conviction investment is a BDC. In this article, I discuss several structural reasons why, in my view, BDCs just have to be integrated into income-oriented portfolios. Plus, I provide 12 points to focus on when investing in BDCs for maximized income, protected downside and sustainable growth.
BDC Weekly Review: The IMF Wants To Look At PIK
We take a look at the action in business development companies through the last week of January and highlight some of the key themes we are watching. BDCs had a strong January, with a nearly 5% average return, supported by an unwinding of expected rate cuts and positive market tone. The IMF will be scrutinizing PIK loans for potential financial stability risks.
Belden Inc. (BDC) Q4 2024 Earnings Call Transcript
Belden Inc. (NYSE:BDC ) Q4 2024 Earnings Conference Call February 6, 2025 8:30 AM ET Company Participants Aaron Reddington – Investor Relations Ashish Chand – President and Chief Executive Officer Jeremy Parks – Senior Vice President and Chief Financial Officer Conference Call Participants Mark Delaney – Goldman Sachs Steven Fox – Fox Advisors William Stein – Truist Securities Rob Jamieson – Vertical Research Partners Operator Ladies and gentlemen, thank you for standing by. Welcome to this morning's Belden Report Fourth Quarter 2024 Results.
Belden (BDC) Tops Q4 Earnings and Revenue Estimates
Belden (BDC) came out with quarterly earnings of $1.92 per share, beating the Zacks Consensus Estimate of $1.67 per share. This compares to earnings of $1.46 per share a year ago.
BDC Dividends: One Is Likely To Go Up, One Is About To Get Cut
BDCs are primarily income-producing assets. When the market conditions become very favorable, as in 2022/2023, BDCs can also deliver income growth and tangible price returns. Yet, the prevailing market environment is not accommodative for BDCs.
BDC Weekly Review: 2 Positives In NCDL Bond Issuance
We take a look at the action in business development companies through the fourth week of January and highlight some of the key themes we are watching. BDCs had a strong week with a 1.5% total return, led by TCPC and GSBD, while OBDC faced pressure from merger-related gains. Nuveen Churchill Direct Lending issued a $300m bond, likely to reduce interest expenses and increase leverage, signaling management's confidence in the portfolio.
5 BDC Investment Criteria And 3 Picks I'd Recommend For Retirees
As a BDC bull, I've to admit that most BDCs are not good enough for being included in a durable retirement/passive income portfolio. In the article I share 5 specific criteria that we have to comply with to minimize dividend cut risk. I also share 3 concrete BDC picks, which I could easily see being included in the retirement income mix.
If I Could Only Buy 1 REIT, 1 BDC And 1 MLP
I love investing in REITs, BDCs and MLPs. They enjoy tax benefits and deliver high and sustainable yields. I share my favorites in each sector right now.
Ares Capital: 8% Yield, Outperforming BDC
Ares Capital is the largest US BDC, with a $15B market cap, offering high yield income through lending and investing in private companies. ARCC's portfolio, valued at $25.9B, is diversified across industries, with a strong focus on 1st Lien Senior Secured Loans and Software & Services. ARCC has a history of low losses and strong dividend coverage, with stable or increasing dividends for over 61 consecutive quarters.
Crescent Capital BDC: High Dividend Yield Looks Solid
Crescent Capital BDC, Inc. offers a solid dividend yield of around 8.6%, with strong dividend coverage that has led to specials being fairly regular. CCAP's portfolio is around 90% first-lien investments with over 97% floating rates, despite this, it appears to be less interest rate-sensitive to other BDCs due to its forms of borrowing. PIK income had increased dramatically in the latest quarter, though it was largely from one-time events; non-accruals stayed very low.
Bain Capital Specialty Finance: An Overlooked Near 10% Yielding BDC Firing On All Cylinders
Bain Capital Specialty Finance has shown strong performance with impressive earnings, solid portfolio quality, and effective management, making it a compelling buy for income-oriented investors. BCSF's portfolio growth and low non-accrual rates, combined with a healthy balance sheet and investment-grade credit ratings, highlight its financial stability and potential for continued growth. Despite trading at a slight discount to NAV, BCSF offers a near double-digit yield and strong dividend coverage, making it an attractive option for income-focused portfolios.
Steeper Yield Curve And BDCs: This Is What You Have To Know
The past couple of months, which include the steepening of the yield curve, have been positive for BDCs. However, higher long-term rates and a steeper yield curve create a net negative effect for BDC fundamentals. In this article, I explain the recent divergence between BDC prices and the worsening interest rate environment.
