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.
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.
Barings BDC has delivered second quarter in a row with improving fundamentals and minimal non-accruals. In fact, Q2, 2024 marked the highest earnings over the TTM period. Looking at the Q2, 2024 report, we will find several data points that indicate an overall strengthening of BBDC's financial profile. However, while there are many encouraging signals and the leverage has decreased substantially, the portfolio quality remains an issue (from the structural perspective).
Knowing who can give you what you need most, regardless of market conditions, is a must for retirees. ARCC has a stellar track record and shows no signs of fumbling the ball. You need income. The middle market needs liquidity. ARCC is the answer to both.
Ares Capital reported strong Q2 results, with a growing portfolio value and surging new investment commitments. Asset quality remained high and dividend coverage remained very decent as well. Despite recent market sell-off, Ares Capital's valuation remains attractive, trading below the longer term P/B ratio.
HTGC had record earnings in 2023 and in Q2 2024. It has demonstrated 10%-plus five-year dividend growth. Analysts' price targets and valuations were discussed, along with profitability, leverage, and performance.
Let us take a look at four top-ranked stocks, BDC, EZPW, GRC and CTLP, with stellar net profit margins that can help create a winning portfolio.
Business development companies, or BDCs, only go up when rates are hiked, right? No so fast, it's not that simple. Revisiting the basics can help you enjoy more income, so we're doing that today. Play an important role in our economy by investing in BDCs and letting them support your retirement with generous income.
GBDC closed a merger agreement with Golub Capital BDC 3, becoming the fifth-largest publicly traded BDC by asset. Golub Capital BDC reported strong earnings for fiscal 2023, with significant revenue and NII growth. Earnings remained strong in the most recent quarters, with revenue and NII continuing to increase.
Ares Capital is a must-own for income investors and their strong Q2 earnings further signified this. Company saw significant growth in net investment income, deal flow, and their portfolio value from $21.5 billion to $25 billion year-over-year. ARCC's balance sheet and ample liquidity of $5.5 billion puts them in a favorable position to capitalize on the uptick in deal flow in the private lending sector.
We take a look at the action in business development companies through the fourth week of July and highlight some of the key themes we are watching. BDCs were up slightly with wide variation, TPVG leading month-to-date. Trinity Capital has partnered with Eagle Point Credit for a new investment vehicle.