Barings BDC: Dividend Risk Fully Priced In

2026-02-25 04:07:06 ET

Barings BDC ( BBDC ) published fourth-quarter EPS of $0.27 last week, exceeding the Wall Street consensus figure by $0.01. The investment firm suffered from a minor portfolio contraction compared to last year, and it warned investors of lower base interest rates in 2026... which are set to exert pressure on Baring BDC’s net investment income. While Barings BDC expects a contraction in its portfolio debt yields in a lower-rate world in 2026, the private credit firm buys back stock, and its shares are trading at a significant (and undeservedly large) discount to net asset value. At the same time, Barings BDC benefited from a sequential improvement in its non-accrual percentage, which is why I am continuing to rate the BDC a buy for investors with a high-risk tolerance....

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