ARCC - Bain Capital Specialty Finance: Q4 A Double-Digit Yielding BDC That Deserves More Appreciation
2024-04-24 11:30:00 ET
Summary
- Despite the run up in share price in the past 3 months, Bain Capital Specialty Finance still trades at a significant discount to NAV.
- BCSF reported strong Q4 earnings with in-line net investment income and impressive total investment income. Both grew year-over-year, a testament to the BDC's portfolio credit quality.
- The BDC has a healthy balance sheet with no debt maturities for 2 years, ample liquidity, and potential for further growth and share price appreciation.
- The company declared a quarterly special dividend of $0.03 for 2024 with the first one payable later this month. Their strong dividend coverage of 129% signifies the room for further dividend increases or specials in the near future.