Belden (BDC) Is a Great Choice for 'Trend' Investors, Here's Why
If you are looking for stocks that are well positioned to maintain their recent uptrend, Belden (BDC) could be a great choice. It is one of the several stocks that passed through our "Recent Price Strength" screen.
PennantPark Floating Rate Capital: A Solid 10.8% Yielding BDC Trading At A Discount
PennantPark Floating Rate Capital is a BDC trading at a small discount to its NAV, making it an attractive investment in comparison to many of its peers. PFLT reported strong earnings with impressive revenue growth and low non-accruals in its portfolio, a testament to its portfolio quality. The company has a solid balance sheet and tight dividend coverage, but potential for dividend increases in the future with growth in their JV portfolio.
New Mountain Finance: Strong 10% Yielding BDC Value Proposition (Rating Upgrade)
New Mountain Finance Corporation offers attractive total return potential and has been able to grow its dividend payments. NMFC stock is priced below net asset value and has upside potential in its Equity portfolio in a strong U.S. economy. The company has a 10% yield, covered by net investment income, and has a compelling risk/reward relationship.
BDC Weekly Wrap: Net Income Mostly Falls In Q1
We take a look at the action in business development companies through the third week of May and highlight some of the key themes we are watching. BDCs were flat on the week, with a month-to-date gain of nearly 2% supported by decent earnings and a higher-for-longer Fed environment. BDC Q1 earnings reports mostly show a drop in net income, due to seasonality, a pivot to first-lien assets, deleveraging, and a shift to higher-coupon debt.
Barings BDC Is Outperforming With Solid Outlook
The BDC industry is growing rapidly, with assets under management hitting a record high, and publicly traded BDCs are well-positioned for growth opportunities. Barings BDC has compelling key metrics, including low non-accruals, strong portfolio credit quality, and a high net asset value, supporting a buy thesis. Its dividends are likely to increase in 2024 due to its potential to generate higher NII than dividends.
Goldman Sachs BDC: 12% Yield And Re-Rating Potential (Rating Upgrade)
Goldman Sachs BDC has seen a surge in new investment commitments in Q1, leading to higher net investment income. The company comfortably covered its dividend payout and maintained a strong portfolio performance. The low non-accrual ratio, excess dividend coverage, and moderate valuation make Goldman Sachs BDC an attractive option for passive income investors.
Barings BDC: Signs Of Improving Profile, But Still Risks Remain
Barings BDC (BBDC) reported decent Q1, 2024 earning results. Most of the main metrics improved relative to Q4, 2023 levels, and, importantly, the non-accrual base finally landed in an optimal territory. Yet, the increase in leverage, higher concentration of portfolio in weakly performing assets and a very thin dividend coverage still render the case suboptimal.
BDC Weekly Review: Fee Rate Cuts Continue
We take a look at the BDC sector through the second week in May. BDCs delivered a total return of 1.5% on the week, outperforming most income sectors. BlackRock TCP Capital Corp reduced its base management fee, following similar fee reductions from other struggling BDCs.
Runway Growth Finance: Solid BDC But Stagnant NAV Due To Decreased Venture Deals
Runway Growth Finance is a business development company that focuses on late-stage growth companies and venture capital. RWAY has a high dividend yield of 13.6%, making it appealing for investors prioritizing current income generation. RWAY's portfolio consists of diverse investments, with a focus on healthcare technology, application software, and information software and services.
Fidus Investment: A Good Entry Point For This 11.9%-Yielding Top BDC Performer (Rating Upgrade)
We provide a Q1 update of the BDC Fidus Investment Corp. Q1 adjusted net income fell for the second consecutive quarter, but the company continues to deliver strong results. FDUS offers a low valuation compared to its performance and is a good opportunity for diversification in the BDC market.
Bain Capital Specialty Finance: A Top-Rated BDC With Robust Outlook
Bain Capital Specialty Finance is one of the top-performing companies in the BDC industry, with strong risk-adjusted returns and a well-diversified investment portfolio. The company's ability to generate a 13% yield on its portfolio while keeping non-accruals at 1% suggests it can sustain healthy returns over the long term. Bain Capital's liquidity position and industry exposure position it well to benefit from increasing demand and potential rate cuts.
Capital Southwest Q4: Quality BDC But Valuation Is Too Rich Here
Capital Southwest has seen strong performance, but its premium is too high at a P/NAV ratio of 1.57x and 1.61x its book value. The BDC reported strong quarterly earnings and continued portfolio growth during Q4, but is likely due for a pullback in the next few months. A pullback in price may be expected in the next 4-6 months due to potential rate cuts and decreased specials and supplemental dividends.
