Core Insights - The article discusses extreme dividend stocks, focusing on high-yield and dividend growth categories, highlighting the potential risks and benefits associated with high dividend yields [2][4]. Dividend Stock Categories - Dividend-focused indices are categorized into dividend growth and high yield, with high-yield stocks attracting income-seeking investors but facing reinvestment challenges [2]. - S&P 500 Dividend Aristocrats, which have increased dividends for at least 25 consecutive years, show steady growth in payouts even during market downturns, offering stronger yield-on-cost over time [3]. Performance of High Yield Dividend Stocks - The S&P Sector-Neutral High Yield Dividend Aristocrats (HYDA) index balances dividend growth with higher yields, achieving better risk-adjusted returns and reducing maximum drawdown by about 5% from January 2005 to July 2023 [4]. Methodology for Stock Selection - The stock screener selected dividend stocks with yields between 6% and 14% as of November 11, focusing on companies with stable dividend histories, although many have inconsistent records due to high yields [6]. - The final list includes companies favored by hedge fund investors, ranked in ascending order based on popularity [6][7]. Company Highlights - **Sunoco LP (NYSE:SUN)**: - Dividend yield of 7.34% as of November 11, with a recent $9 billion acquisition of Parkland Corporation, creating the largest independent fuel distributor in the Americas [9][10]. - Reported Q3 2025 revenue of $6.03 billion, a nearly 5% increase year-over-year, and raised its quarterly distribution by 1.25% [11][12]. - **Western Midstream Partners, LP (NYSE:WES)**: - Dividend yield of 9.18% as of November 11, with a recent price target increase from $41 to $43 by Stifel [13][14]. - Q3 2025 results exceeded expectations, with a projected adjusted EBITDA range of $2.35 billion to $2.55 billion for 2025, including contributions from the Aris acquisition [15][16]. - **Barings BDC, Inc. (NYSE:BBDC)**: - Dividend yield of 11.66% as of November 11, with a recent price target cut to $9.50 while maintaining a Market Perform rating [17]. - Reported total investment income of $72.4 million and net investment income of $33.6 million for Q3 2025, with a quarterly dividend of $0.26 per share [18][19].

Financial Data and Key Metrics Changes - For the third quarter, the net asset value (NAV) per share was $11.10, reflecting a 0.7% decrease quarter over quarter [19] - Net investment income (NII) for the quarter was $0.32 per share, an increase from $0.28 per share in the previous quarter [21][24] - The net leverage ratio was 1.26 times at quarter end, down from 1.29 times as of June 30 [22] Business Line Data and Key Metrics Changes - Barings-originated positions now constitute 95% of the BBDC portfolio at fair value, up from 76% at the beginning of 2022 [8] - The weighted average yield at fair value was 9.9%, showing a slight reduction from the prior quarter due to lower base rates [9] - Interest coverage within the portfolio was 2.4 times, above industry averages and consistent with the prior quarter [16] Market Data and Key Metrics Changes - The private credit ecosystem has seen meaningful growth over the past decade, with increased activity across all market segments [10][13] - The competition for new assets remains aggressive, but the core middle market is experiencing less pressure compared to other segments [14] Company Strategy and Development Direction - The company focuses on core middle-market strategies, emphasizing sectors that perform resiliently across economic environments [7][10] - The leadership transition to Tom McDonald as the new CEO is expected to provide continuity and build on the existing foundation [4][5] Management's Comments on Operating Environment and Future Outlook - Management anticipates a moderate increase in deployment opportunities, benefiting from incumbency and deep private equity coverage [15] - The company remains confident in its credit quality and expects positive outcomes in the coming quarters [18] Other Important Information - The board declared a fourth-quarter dividend of $0.26 per share, consistent with the prior quarter, representing a 9.4% yield on NAV [9][24] - The company has spillover income of $0.65 per share, equating to more than two quarters of the regular dividend [25] Q&A Session Summary Question: Expectations on repayment activity with recent Fed cuts - Management noted that a significant portion of repayments is from sales to their joint venture and anticipates a moderate uptick in repayment velocity towards year-end [28][29] Question: Plans for share buybacks given stock trading at a discount - Management stated that share buybacks are consistently evaluated and there may be activity in the coming quarters [30]

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NOVEMBER 7, 2025 Barings BDC, Inc. Third Quarter 2025 Earnings Presentation Important Information & Cautionary Notice Regarding Forward-Looking Statements Cautionary Notice: Certain statements contained in this presentation are "forward-looking" statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made and which reflect management's current estimates, projections, expectations or beliefs, and which are subject to ris ...

Core Insights - Barings BDC reported quarterly earnings of $0.32 per share, exceeding the Zacks Consensus Estimate of $0.27 per share, and showing an increase from $0.29 per share a year ago, resulting in an earnings surprise of +18.52% [1] - The company generated revenues of $72.4 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.45% and up from $70.85 million year-over-year [2] - Barings BDC has outperformed consensus EPS estimates two times in the last four quarters and has topped consensus revenue estimates three times in the same period [2] Earnings Outlook - The sustainability of Barings BDC's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $0.26 on revenues of $68.6 million, while for the current fiscal year, the estimate is $1.07 on revenues of $278.1 million [7] Industry Context - The Financial - SBIC & Commercial Industry, to which Barings BDC belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Barings BDC's stock performance [5]

Investment Portfolio - As of September 30, 2025, the total value of the investment portfolio was $2,536.3 million, an increase from $2,449.3 million as of December 31, 2024[418] - The company had investments in 333 portfolio companies with an aggregate cost of $2,564.0 million as of September 30, 2025, compared to 328 companies and $2,522.7 million as of December 31, 2024[418] - As of September 30, 2025, the total investment portfolio fair value was $2,536.3 million, with senior debt and first lien notes comprising 70% of the portfolio[419] - The total cost of the investment portfolio as of September 30, 2025, was $2,564.0 million, with equity shares accounting for 15% of the total cost[419] - The fair value of the investment portfolio as of December 31, 2024, was $2,449.3 million, with senior debt and first lien notes also comprising 69% of the portfolio[419] Investment Performance - During the nine months ended September 30, 2025, the company made 47 new investments totaling $356.6 million and recognized a net realized loss of $27.7 million from 32 loan repayments totaling $187.0 million[420] - The company recognized a net realized gain of $3.9 million from the sale of equity investments totaling $25.9 million during the nine months ended September 30, 2025[420] - The company received $124.5 million in principal payments and sales proceeds from portfolio companies, with a net realized loss of $0.2 million on these transactions[420] - The net realized losses for the three months ended September 30, 2025, totaled $1.3 million, compared to net realized losses of $10.9 million for the same period in 2024, representing an improvement of 88.01%[450][452] - During the nine months ended September 30, 2025, net realized losses amounted to $17.5 million, a decrease from $24.3 million in the same period of 2024, reflecting a 28.68% improvement[450][459] Income and Expenses - Total investment income for the three months ended September 30, 2025, was $72.4 million, a slight increase from $70.9 million for the same period in 2024[437] - Net investment income after taxes for the three months ended September 30, 2025, was $33.6 million, compared to $30.2 million for the same period in 2024, reflecting a year-over-year increase of 8.0%[437] - Total operating expenses for the three months ended September 30, 2025, were $37.5 million, a decrease from $39.6 million in the same period of 2024[440] - Interest and other financing fees for the three months ended September 30, 2025, were $21.5 million, down from $22.6 million in the same period of 2024, primarily due to a lower weighted average interest rate[441] - Dividends from portfolio companies for the three months ended September 30, 2025, were $14.2 million, compared to $9.8 million for the same period in 2024, representing a 45.0% increase[439] Debt and Financing - The company had borrowings under the February 2019 Credit Facility of £48.6 million ($65.4 million) and €245.6 million ($288.6 million) with interest rates of 5.875% and 3.750% respectively[465] - The fair value of the borrowings outstanding under the February 2019 Credit Facility was $354.0 million as of September 30, 2025[466] - The company issued $50.0 million in Series A senior unsecured notes due August 2025 with a fixed interest rate of 4.66%[467] - The November 2020 NPA included $62.5 million in Series B senior unsecured notes due November 2025 and $112.5 million in Series C senior unsecured notes due November 2027, with fixed interest rates of 4.25% and 4.75% respectively[472] - The company entered into a $300.0 million notional value interest rate swap with a fixed rate interest of 5.20% and a payment based on SOFR plus 2.059%, maturing on September 15, 2028[502] Cash and Liquidity - As of September 30, 2025, the company had $83.2 million in cash and foreign currencies on hand, including $12.9 million of restricted cash[459] - The company experienced a net cash decrease of $8.1 million for the nine months ended September 30, 2025, driven by significant cash outflows from operating activities[459] - For the nine months ended September 30, 2025, cash used in operating activities was $44.0 million, primarily due to portfolio investments purchases totaling $561.6 million[459] - The total unused commitments to extend financing amounted to $20,000, with specific commitments including $1,031 for Accelevation LLC and $1,671 for Accurus Aerospace Corporation[538] Shareholder Returns - The company authorized a new share repurchase program on February 20, 2025, allowing for the repurchase of up to $30.0 million in common stock, effective until March 1, 2026[504] - During the nine months ended September 30, 2025, the company repurchased 250,000 shares at an average price of $9.35 per share[504] - The company intends to pay quarterly distributions, with a declared distribution of $0.26 per share payable on December 10, 2025[511] - The company has adopted a dividend reinvestment plan (DRIP) for stockholders, allowing for automatic reinvestment of dividends unless opted out[505] Risk and Valuation - The fair value of investments is determined using Level 3 inputs for privately held companies, with independent valuations performed quarterly for certain loans and equity investments[524] - The company may need to distribute income to stockholders to meet minimum distribution requirements, even for non-accrual investments[530] - The fair value of investments in certain LLCs is estimated using NAV and ownership percentage due to the lack of readily determinable fair values[526] - A hypothetical increase of 300 basis points in interest rates would result in an increase in net income by $30,692 thousand, while a decrease of 50 basis points would lead to a decrease in net income by $5,115 thousand[551]

Exhibit 99.1 BARINGS BDC, INC. REPORTS THIRD QUARTER 2025 RESULTS CHARLOTTE, N.C., November 6, 2025 - Barings BDC, Inc. (NYSE: BBDC) ("Barings BDC" or the "Company") today reported its financial and operating results for the third quarter of 2025. Highlights | | Three Months Ended | | Three Months Ended | | | --- | --- | --- | --- | --- | | Income Statement | September 30, 2025 | | June 30, 2025 | | | (dollars in millions, except per share data) | Total Amount | Per (1) Share | Total Amount | Per (2) Share ...

Core Points - Barings BDC, Inc. declared a quarterly cash dividend of $0.26 per share for the quarter ending December 31, 2025 [1] - The company will report its financial results for the third quarter ended September 30, 2025, on November 6, 2025, after market close [1] - A conference call is scheduled to discuss the third quarter results [1]

Core Insights - Investors are particularly attracted to dividend stocks with ultra-high yields due to their ability to provide significant income streams and substantial total return potential [1] Summary by Category - **Investor Preferences** - Dividend stocks are favored by investors for their high yields [1] - These stocks are seen as a reliable source of income [1] - **Return Potential** - Dividend stocks not only offer income but also have the potential for substantial total returns [1]

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