Belden (BDC) Stock

CHICAGO--(BUSINESS WIRE)--Kayne Anderson BDC, Inc. (NYSE: KBDC) (“KBDC”), a business development company externally managed by its investment adviser, KA Credit Advisors, LLC, announced today that it will release its financial results for the fourth quarter ended December 31, 2024 on Monday, March 3, 2025, after the close of financial markets. KBDC will host a conference call at 10:00 am ET on Tuesday, March 4, 2025, to review its financial results. All interested parties are invited to partici.

I love investing in REITs, BDCs and MLPs. They enjoy tax benefits and deliver high and sustainable yields. I share my favorites in each sector right now.

Ares Capital is the largest US BDC, with a $15B market cap, offering high yield income through lending and investing in private companies. ARCC's portfolio, valued at $25.9B, is diversified across industries, with a strong focus on 1st Lien Senior Secured Loans and Software & Services. ARCC has a history of low losses and strong dividend coverage, with stable or increasing dividends for over 61 consecutive quarters.

Crescent Capital BDC, Inc. offers a solid dividend yield of around 8.6%, with strong dividend coverage that has led to specials being fairly regular. CCAP's portfolio is around 90% first-lien investments with over 97% floating rates, despite this, it appears to be less interest rate-sensitive to other BDCs due to its forms of borrowing. PIK income had increased dramatically in the latest quarter, though it was largely from one-time events; non-accruals stayed very low.

Bain Capital Specialty Finance has shown strong performance with impressive earnings, solid portfolio quality, and effective management, making it a compelling buy for income-oriented investors. BCSF's portfolio growth and low non-accrual rates, combined with a healthy balance sheet and investment-grade credit ratings, highlight its financial stability and potential for continued growth. Despite trading at a slight discount to NAV, BCSF offers a near double-digit yield and strong dividend coverage, making it an attractive option for income-focused portfolios.

The past couple of months, which include the steepening of the yield curve, have been positive for BDCs. However, higher long-term rates and a steeper yield curve create a net negative effect for BDC fundamentals. In this article, I explain the recent divergence between BDC prices and the worsening interest rate environment.

Ares Capital: Turning To Hold On My Top BDC Position

We take a look at the action in business development companies through the third week of January and highlight some of the key themes we are watching. BDCs had a strong week with a 3% total return, boosted this year by the unwinding of several Fed rate cuts. Blue Owl Capital Corp's merger with OBDE provided significant alpha opportunities due to OBDE's lower valuation.

Blue Owl Capital Corporation is a well-run BDC with a strong portfolio. The firm's recent merger with Blue Owl's other entity, OBDE, should improve the combined company's size, portfolio quality, and deal flow. We believe OBDC's dividend is well covered by strong NII, and noise around the company's portfolio 'Fair Value' can be ignored.