Crescent Capital BDC: Q4 Earnings Showing Signs Of Weakness (Rating Downgrade)
Crescent Capital BDC is downgraded due to a declining NII, and a less attractive discount to NAV. However, I don't see a reason for existing shareholders to sell. Despite recent weaknesses, CCAP maintains a strong dividend yield of 10.4%, supported by a healthy coverage rate and supplemental distributions for the next three quarters. The portfolio's high industry diversification and 90% first lien debt structure provide defensive measures, but higher interest rates challenge borrower performance.
Goldman Sachs BDC: Structural Changes Provide Flexibility, But Investors Should Remain Cautious
Goldman Sachs BDC has underperformed despite a favorable interest rate environment, with a 35.26% decline and a recent 29% dividend cut. Structural changes, including a reduced incentive fee and a new dividend policy, offer flexibility but credit quality remains a concern. High non-accruals, declining NAV, and increased PIK income signal potential trouble, warranting caution for dividend investors.
Kayne Anderson BDC: Still Under The Radar, Still My Top 1 BDC
I issued a bullish thesis on Kayne Anderson BDC, Inc. in October 2024, making it my largest BDC holding. KBDC now consumes ~25% of my BDC portfolio, which I constructed for transparency and easy tracking for Seeking Alpha readers. Despite a recent dip post-Q4 2024 earnings (really driven by sector-wide decrease), KBDC's performance has been solid, aligning with the broader BDC market.
BDC Dividend Cut Party Has Begun, Here Are Next 2 In Line
BDC Dividend Cut Party Has Begun, Here Are Next 2 In Line
BDC Investors Beware: 3 Major Risks You Can't Ignore Right Now
BDCs have been soaring, but cracks are starting to show—here's what investors need to watch out for. We discuss why most BDCs are not worth buying now. One BDC stands out as a strong buy—find out which name offers value, safety, and sustainable dividends.
1 BDC And 1 MLP That Just Have To Be Put In Your Income Portfolio
BDCs and MLPs offer high yields for passive income strategies, but recent price increases have made many fairly priced or even overvalued. Yet, there are exceptions to be found. In this article I share two picks: 1 BDC and MLP that offer enticing yields in combination with solid price to value ratios.
My BDC Portfolio To Beat The Index And Generate Durable Income
In this article I have elaborated on my actual BDC portfolio. The objective of this portfolio is to beat the BDC-specific indices/ETFs and capture durable base dividends. The portfolio is optimized across leverage, dividend coverage, yield, and valuation levers.
Ares Capital: Another Strong Quarter For This Upper Middle-Market BDC
Ares Capital delivered a solid 3.3% total NAV return, trades at an 8.25% dividend yield, and has a core earnings yield of 9.4%. The NAV rose to a record $19.89, marking the seventh consecutive quarterly rise, driven by retained income and unrealized appreciation. ARCC's portfolio is highly diversified with 535 companies, focusing on larger firms, and recently acquiring Riverside Credit Solutions to balance lending.
BDC Weekly Review: Few Worries About MSDL Share Cap Raise
We take a look at the action in business development companies through the second week of February and highlight some of the key themes we are watching. BDCs saw a strong 2% gain, driven by solid earnings and hot inflation numbers, with CGBD underperforming due to a BOA rating cut. Morgan Stanley Direct Lending Fund seeks shareholder approval to increase shares significantly, a common practice among BDCs with minimal dilution concerns.
Golub Capital: A Solid Result From This Consistent BDC
Golub Capital BDC delivered a solid quarter with a 2.8% total NAV return. It trades at a 10% dividend yield and a 3% premium to NAV. The company's portfolio is well-diversified with 386 positions, primarily in floating-rate first-lien loans; it is focused on the software and healthcare sectors. Despite a 17% drop in adjusted net investment income, the decline was less than 5% after adjusting for non-repeatable items; no supplemental dividend was declared.
My Dividend Stock Portfolio: New January Dividend Record - 100 Holdings With 14 Buys
January saw solid investment activity with $1,500 in net capital added, primarily into Business Development Companies like Owl Rock Capital, Goldman Sachs BDC, and Blackstone Secured Lending Fund. Dividend income hit a record $814 in January, up 21% Y/Y, driven by ongoing investments in high-yield BDCs, aiming for $11,000 annual net dividends. Focus on maintaining steady BDC dividends and achieving a monthly increase of $100 in dividend income.
PennantPark Investment: My Highest Conviction No-Go In The BDC Space
PennantPark Investment trades at a discount of ~5%. While the discount certainly makes the entry point interesting, the real question is whether the discount is enough to justify the risks. Looking at the underlying fundamentals, I don't see this to be a case.
