System-wide BDC dividend cuts are highly likely as base dividend coverage averages 99% and growth is constrained. As a result, many BDC investors have decided to sit on the sidelines until the expected dividend cuts materialize. The idea is that a cut will lead to a negative share price reaction and thus provide a better opportunity to buy at a bargain price.
Here is how Belden (BDC) and ATN International (ATNI) have performed compared to their sector so far this year.
Palmer Square Capital BDC remains a sell due to persistent NAV declines, weak earnings, and lack of near-term catalysts. PSBD trades at a record 23.47% discount to NAV, but I see further downside risk outweighing the appeal of its 14.6% dividend yield. Management's capital allocation favors supplemental distributions over reinvestment, limiting earnings growth and NAV recovery potential.
| Communications Equipment Industry | Information Technology Sector | Ashish Chand CEO | XSTU Exchange | US0774541066 ISIN |
| US Country | 7,500 Employees | 11 Dec 2025 Last Dividend | 16 Jul 2004 Last Split | 29 Sep 1993 IPO Date |
Belden Inc. stands as a renowned entity focused on the design, manufacturing, and marketing of a comprehensive range of signal transmission solutions, catering to mission-critical applications across a diverse geographic span including the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions. With its inception dating back to 1902, and its headquarters strategically positioned in Saint Louis, Missouri, Belden has evolved substantially over the years. Initially known as Belden CDT Inc., the company underwent a rebranding phase, adopting the name Belden Inc. in May 2007. Its operational framework is segmented into two primary divisions: Enterprise Solutions and Industrial Automation Solutions, each dedicated to addressing the intricate demands of their respective markets.
This segment encapsulates a broad spectrum of products designed to enhance the infrastructure of local area networks, data centers, and various communication systems. Among these offerings include copper cable and connectivity solutions, fiber cable and connectivity options, alongside sophisticated interconnect panels, racks, and enclosures. Additionally, Belden provides advanced signal extension and matrix switching systems, accommodating a multitude of applications including 5G, fiber to the home, and building automation. Not stopping there, the segment also delivers power, cooling, and airflow management products, pivotal for the seamless operation of mission-critical data centers, alongside comprehensive end-to-end fiber and copper network systems. The target clientele for these products spans across commercial real estate, education, financial sectors, stadiums and venues, military installations, broadband and wireless service providers, as well as data centers, government entities, healthcare facilities, and the hospitality industry.
In the realm of industrial automation, Belden presents a robust portfolio of network infrastructure and digitization solutions intended to fortify secure networks pivotal for the digitization and automation of industries and infrastructure. This includes an extensive array of products and solutions dedicated to the intricate process of data handling, which encompasses data acquisition, transmission, orchestration, and management. The applicability of these solutions spans discrete automation, process automation, energy generation and distribution, and mass transit systems. By marketing these offerings to distributors, end-users, installers, and original equipment manufacturers (OEMs), Belden ensures the availability of its advanced solutions across various industrial sectors.