BBDC - BBDC: Adding A Starter Position In This 10.9% Yielding BDC
2024-06-27 11:30:51 ET
Summary
- We take a look at BDC BBDC, which trades at a 16% discount to book with a 10.8% dividend yield and 11.6% net investment income yield.
- BBDC has performed in line with the sector over the last few years.
- BBDC offers a margin of safety with a market-performing portfolio and a significantly lower than average valuation.
- The key risks include a high level of equity in the portfolio and recent staff turnover.
In this article, we highlight our recent starter position in the Barings BDC ( BBDC ). The company has a relatively high allocation to Equity securities. It is overweight in Tech, Healthcare and Finance sectors, fairly typical of the sector. BBDC trades at a 16% discount to book and a 10.9% dividend yield with a 11.6% net investment income yield....
BBDC: Adding A Starter Position In This 10.9% Yielding BDC