BBDC - Barings BDC: Credit Quality Improvement Fully Priced In (Rating Downgrade)

2024-05-31 13:55:01 ET

Summary

• Barings BDC has improved its credit quality and has a sustainable dividend payout ratio.
• The BDC's non-accrual ratio dropped significantly, leading to a higher stock price and lower discount to net asset value.
• The BDC's dividend is still covered by net investment income, but the payout ratio has increased and the trend is slightly negative.

Barings BDC Inc. ( BBDC ) is a Senior Lending-focused business development company with decent credit quality and a low enough dividend pay-out ratio to suggest that the dividend at its present run-rate of $0.26 per share per quarter can be sustained....

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