PNNT - Barings BDC: An 11% Yield That Has The Makings Of A Great Long-Term Investment

2024-06-21 08:00:00 ET

Summary

• Barings BDC remains an attractive investment with strong fundamentals and performance.
• They are one of the few high-quality BDCs trading below their NAV with a 20% discount currently.
• Strong credit quality, NAV growth, and share buybacks make Barings BDC a buy despite risks investing in smaller companies.
• As a result, BBDC could see non-accruals tick up if the economy avoids a soft landing and falls into a recession as their smaller borrowers could face bankruptcy challenges.

Introduction

There are many high-yielding BDCs that are considered attractive investments because of their lower prices, and higher dividend yields in general. But all that glitters isn't gold. We've all heard that phrase right? Throughout my time here on Seeking Alpha, I've preached the Quality Over Quantity theme and it's something I stand by when in search of new investments....

For further details see: