2 BDCs Generating 10%+ Of Durable Passive Income
BDCs remain under pressure and the percentage of BDC float that is linked to short sellers has clearly risen. The market seems to question the sustainability of reported NAVs. I completely see how BDC investments might seem uncomfortable for really stable passive income investors.
Barings BDC: 11% Yield And 19% Discount Make It A Buy
Barings BDC offers an 11.5% dividend yield and trades at a 0.81x price-to-NAV, well below peers and historical averages. BBDC's portfolio is primarily first-lien secured, with low non-accruals and strong credit quality, supported by the company's origination platform. It has a 123% dividend coverage ratio and $0.65/share in spillover income, providing additional cushion.
Consider Selling BDCs Due To Lower Rates? Here's Why It's A Bad Idea
BDC net investment income levels are declining as the Fed lowers rates. Despite lower base rates, I see no reason to rotate out of the BDC sector. In the article I detail how BDCs have outperformed the S&P 500 and high yield credit even in prolonged low-rate environments.
Barings BDC: Excessive NAV Discount
Barings BDC offers a first-lien focused portfolio with strong origination and asset quality. BDC trades at a 19% discount to NAV despite covering its 11.6% yield with net investment income. The BDC's portfolio grew 5% year-over-year, with non-accruals well below 1%, highlighting balance sheet strength.
Main Street Capital: The Only Blue Chip BDC You'll Ever Need
Main Street Capital (MAIN) stands out as a blue chip BDC, delivering robust total returns and highly reliable monthly income since its 2007 IPO. MAIN commands an 82% premium to book value, justified by its consistent NAV growth, strong GAAP-NII-to-distribution coverage, and prudent portfolio management. Despite a 3.6% cost-based non-accrual ratio, MAIN's fair value non-accrual drops to 1.2%, supporting dividend safety and ongoing supplemental payouts.
VanEck's Unique BDC Income ETF Yields 12%
Middle-market lending has shifted from bank balance sheets to specialized investment vehicles, creating opportunity for income investors willing to accept credit risk and volatility.
Barings BDC: It Is Time To Enter This 11.7% Yielder
Barings BDC Inc has entered a deep discount territory. At the same time, BBDC's 11.7% dividend is supported by one of the strongest base dividend coverage levels in the BDC game. In Q3, 2025, we also noticed a manifestation of BBDC's hidden strength - competitive fee structure.
Ares Capital Vs. Blue Owl Capital: A Battle Of BDC Titans
ARCC shows superior dividend coverage resilience in a -50bps rate cut scenario compared to OBDC. Non-accruals for ARCC trended down to 1.0% in Q3 2025, while OBDC experienced an uptick to 1.3%. Despite OBDC's higher yield, ARCC's historical Total Return outperforms, due to its equity-kicker strategy.
Ares Capital: The War Is Not Yet Lost
Ares Capital has dipped nearly 10% year-to-date, as investors fret over the pace of Fed rate cuts and wider "credit cockroaches", even as the BDC's credit quality sees sequential improvements. The BDC is paying out a 9.6% dividend yield that was covered by both net income and core EPS. NAV per share advanced on both a nominal and per share basis, versus its year-ago comp, with the BDC trading at a small discount to its NAV per share figure.
This Is How I'm Harvesting BDC Cash Flows For My Retirement
This Is How I'm Harvesting BDC Cash Flows For My Retirement. The double-digit yields, term 'private credit,' cases like First Brands and Tricolor are just some examples that introduce a high degree of skepticism. However, if done right, BDCs can bring a lot of value to the table for safe passive income investors.
Goldman Sachs BDC: Excessive NAV Discount
Goldman Sachs BDC faces portfolio value declines and dividend coverage concerns amid anticipated lower federal fund rates. GSBD's non-accrual percentage has improved in the last year, but the BDC's portfolio quality and coverage ratio lag peers like ARCC and BXSL. Shares trade at an excessive discount to net asset value, reflecting ongoing net investment income pressure and portfolio contraction risks.
Goldman Sachs BDC: Huge Discount To NAV, But I'm Not Buying The Fat 14% Yield
Goldman Sachs BDC saw net asset value per share dip by 2.1% sequentially as total investment income fell from its year-ago comp. The BDC did not declare a $0.16 per share special dividend for its final quarter, but is currently paying out an aggregate 14.5% dividend yield. GSBD has seen its net asset value on a sustained dip since 2023, with negative net fundings pushing its total investment portfolio lower.
