BeldenNYSE: BDC

We take a look at the action in business development companies through the second week of November and highlight some of the key themes we are watching. BDCs were flat this week in aggregate, outperforming other income sectors, with PSEC and TPVG book ending month-to-date returns. Q3 earnings reveal a slight decline in net investment income due to rate cuts, tight market spreads, and refinancing into higher coupon debt.

Ares Capital and Barings BDC are two decent quality names, which put a heavy emphasize on investments outside the safest loan category. In the article I assess both BDCs comparing them side by side. I also share my view why both are solid income picks with one being superior, especially for low risk and high yield investors.

Main Street Capital is a top-performing BDC with strong financials, portfolio diversification, and consistent dividend coverage, outperforming peers and major indices since its IPO. Despite a high return on equity and growing net asset value, MAIN trades at a premium to NAV, indicating overvaluation. MAIN's current dividend yield is around 5.8%, with distributable net investment income comfortably covering dividends, providing security during volatile times.

Here is how Belden (BDC) and Zebra Technologies (ZBRA) have performed compared to their sector so far this year.

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I have been quite hesitant ongoing long BBDC since December 2023. Now, looking at the recent financials and significant discount, things have changed. Even though there are risks in the system, they do not increase the risk of a 10.5% dividend cut.

NEW YORK--(BUSINESS WIRE)--Golub Capital BDC, Inc. (“GBDC” or the “Company”), a business development company (Nasdaq: GBDC), and Golub Capital, today announced a series of debt funding structure initiatives expected to reduce GBDC's prospective borrowing costs and provide additional investment flexibility: On November 18, 2024, GBDC completed a $2.2 billion term debt securitization, also referred to as a collateralized loan obligation (CLO)(“2024 Debt Securitization”). The secured notes were is.

Investors need to pay close attention to Belden (BDC) stock based on the movements in the options market lately.

Golub Capital BDC offers a solid track record, high asset quality, and good management, yielding over 11% with an undemanding valuation, making it attractive for income investors. The company focuses on first-lien senior secured debt, providing low-risk exposure and high-interest rates, with a diversified portfolio across non-cyclical industries. Significant insider ownership aligns management with shareholders' interests, and recent earnings show strong net investment income growth and improved asset quality.