Market Overview - Wall Street has experienced significant volatility in September, with the U.S. stock market bouncing back on expectations of Federal Reserve rate cuts after the largest weekly losses of the year [1] - Economic slowdown concerns continue to impact stock performance, with investors seeking high-yield dividend ETFs and stocks as defensive options [1] Rate Cuts Expectations - The Federal Reserve is anticipated to lower interest rates by 25 basis points at each of the three remaining policy meetings this year, with a current range of 5.25%-5.50% since July 2023 [3] - The CME FedWatch tool indicates a 66% chance of a 25 bps cut and a 34% chance of a 50 bps cut during the Fed's decision on September 18 [3] Economic Slowdown Indicators - The U.S. created 142,000 jobs in August, below the expected 160,000, with prior month job growth also revised lower, signaling a cooling labor market [4] - Job openings dropped to the lowest level since January 2021, and the ISM manufacturing survey showed weaker results, contributing to economic slowdown concerns [4] Volatility Factors - Continued volatility is expected due to geopolitical tensions and the upcoming November elections, with historical trends indicating September is typically a weak month for the stock market [5] ETFs in Focus - **Global X SuperDividend ETF (SDIV)**: Annual yield of 10.8%, with $789.2 million in assets and an average trading volume of 200,000 shares [6][7] - **First Trust NASDAQ Rising Dividend Achievers ETF (RDVY)**: Annual yield of 8.5%, with $1.3 billion in assets and an average trading volume of 714,000 shares [8] - **Global X SuperDividend U.S. ETF (DIV)**: Annual yield of 6.2%, with $639.2 million in assets and an average trading volume of 144,000 shares [9] Stocks in Focus - **Barings BDC (BBDC)**: Annual dividend of 10.70%, market cap of $1 billion, with a Zacks Rank 2 and expected earnings growth of 7.56% [10] - **Delek Logistics Partners L.P. (DKL)**: Annual yield of 10.6%, market cap of $1.9 billion, with expected earnings growth of 5.6% [11] - **British American Tobacco (BTI)**: Annual yield of 7.6%, market cap of $86.7 billion, with expected earnings growth of 0.4% [12]

Core Viewpoint - The article discusses the current state of small-cap stocks with high dividend yields, contrasting them with the S&P 500, particularly highlighting the challenges faced by companies like Xerox and the potential opportunities in other small-cap stocks. Group 1: S&P 500 and Small-Cap Comparison - The S&P 500 index is heavily weighted towards Nvidia, which constitutes 6.3% of the index, and the SPDR S&P 500 ETF (SPY) yields only 1.2% with a P/E ratio of 22 times earnings [1] - In contrast, the S&P SmallCap 600 trades at a more reasonable P/E of 16, with select small caps offering dividend yields between 9.1% and 14.7% [1] Group 2: Xerox (XRX) - Xerox has seen its market capitalization fall below $2 billion, marking its status as a small cap for the first time since 1990, following a nearly 40% year-to-date decline [2] - The company has struggled to pivot from its core printing business, leading to a revised revenue guidance of a 5%-6% decline and an adjusted operating margin of 6.5% [3] - Despite a high dividend yield of 9.1%, the business is considered to be in decline, with earnings expectations lowered significantly [3] Group 3: Dorian LPG (LPG) - Dorian LPG, a liquefied petroleum gas shipping company, currently offers a dividend yield of 10.7%, although this has decreased from 25% due to a 66% increase in share price [4] - The company’s earnings for the fiscal year 2025 are expected to fall by 36% from last year's record profits, but a rebound is anticipated in fiscal 2026 [5] - Shares are trading at 7.7 times expected earnings, which is considered inexpensive for investors [6] Group 4: Goldman Sachs BDC (GSBD) - Goldman Sachs BDC offers a high dividend yield of 12.7%, targeting companies with annual EBITDA between $5 million and $75 million [7] - The company has underperformed the BDC industry for years, with a net asset value decline of about 6% last quarter [8] - Despite trading at a low 6.5 times estimates for net investment income per share, it is considered overvalued at a price to NAV of 1.04x [8] Group 5: Barings BDC (BBDC) - Barings BDC provides a 10.3% dividend yield and trades at an 11% discount to NAV, focusing on senior secured private debt investments [9] - The company has improved its portfolio significantly since rebranding from Triangle Capital in 2018, now managing 329 portfolio companies [9][10] - Barings BDC maintains a high-credit-quality portfolio and covers its dividend comfortably [10] Group 6: Ready Capital (RC) - Ready Capital has a dividend yield of 14.7% and trades at 0.63 times book value, which is lower than its peers [11] - The company focuses on originating and servicing small- and medium-sized balance commercial loans, with a recent merger with Broadmark Realty Capital [12] - Ready Capital is undergoing a restructuring process to improve earnings, which have recently fallen below its dividend expectations [13]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companie ...

BARINGS AUGUST 8, 2024 | --- | --- | --- | |-------|-------|-----------------------| | | | | | | | Barings BDC, Inc. | | | | Second Quarter 2024 | | | | Earnings Presentation | Disclaimers & 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 managem ...

Barings BDC, Inc. (NYSE:BBDC) Q2 2024 Earnings Conference Call August 8, 2024 9:00 AM ET Company Participants Joe Mazzoli - Head, IR Eric Lloyd - CEO Matt Freund - President Elizabeth Murray - CFO Bryan High - Head, Global Private Finance, and Portfolio Manager Conference Call Participants Robert Dodd - Raymond James Finian O'shea - Wells Fargo Casey Alexander - Compass Point Operator At this time, I would like to welcome everyone to the Barings BDC, Inc. Conference Call for the Quarter Ended June 30, 2024. ...

Barings BDC (BBDC) came out with quarterly earnings of $0.40 per share, beating the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 33.33%. A quarter ago, it was expected that this business development company would post earnings of $0.30 per share when it actually produced earnings of $0.28, delivering a surprise of -6.67%.Over the last four quart ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________________ Form 10-Q __________________________________________________________ (Mark One) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 814-00733 _____ ...

Financial Performance - Barings BDC reported net investment income of $42.1 million, or $0.40 per share, for Q2 2024, an increase from $29.4 million, or $0.28 per share, in Q1 2024[2]. - The total investment income for the quarter was $74.9 million, with a net increase in net assets resulting from operations of $19.4 million, or $0.18 per share[4]. - Total investment income for the six months ended June 30, 2024, was $144,692, an increase of 1.53% compared to $142,506 for the same period in 2023[22]. - Net investment income after taxes for the six months ended June 30, 2024, was $71,494, up 16.83% from $61,123 for the same period in 2023[22]. - Net investment income per share increased to $0.40 for the period ending June 30, 2024, compared to $0.31 for the same period in 2023[23]. - Total dividends/distributions per share increased to $0.26 for the period ending June 30, 2024, compared to $0.25 for the same period in 2023[23]. Investment Portfolio - The investment portfolio at fair value decreased to $2,395.7 million as of June 30, 2024, down from $2,527.5 million as of March 31, 2024[3]. - The company made nine new investments totaling $38.5 million and had 15 loans repaid totaling $116.2 million during the quarter[7]. - Non-Control/Non-Affiliate investments generated interest income of $107,273 for the six months ended June 30, 2024, compared to $105,729 for the same period in 2023[22]. - Net realized gains on investments were $9,101,000 for the period ending June 30, 2024, compared to $45,446,000 for the same period in 2023[24]. Assets and Liabilities - As of June 30, 2024, total assets were $2,603.6 million, with total net assets (equity) of $1,201.9 million[3]. - Total assets as of June 30, 2024, were $2,603,643, a decrease of 2.75% from $2,677,453 as of December 31, 2023[21]. - Total liabilities decreased to $1,401,767 as of June 30, 2024, down 5.32% from $1,480,894 as of December 31, 2023[21]. - Total debt as of June 30, 2024, was $1,375,823,000, down from $1,465,352,000 as of March 31, 2024[26]. Cash Flow and Expenses - Net cash provided by operating activities was $143,203,000 for the period ending June 30, 2024, compared to a net cash used of $(27,196,000) for the same period in 2023[24]. - Total operating expenses for the six months ended June 30, 2024, were $72,633, a decrease of 10.3% from $80,988 for the same period in 2023[22]. - Cash dividends/distributions paid were $(55,109,000) for the period ending June 30, 2024, compared to $(53,646,000) for the same period in 2023[24]. Debt and Equity - The debt-to-equity ratio improved to 1.14x from 1.21x in the previous quarter[3]. - Total net debt-to-equity ratio decreased to 1.07x as of June 30, 2024, from 1.17x as of March 31, 2024[26]. - Borrowings under credit facility decreased significantly to $350,823 as of June 30, 2024, from $719,914 as of December 31, 2023[21]. Market Performance - The weighted average yield on performing debt investments increased to 10.9% from 10.7% in the previous quarter[3]. - The company recorded net unrealized depreciation of $30.8 million during the quarter, primarily due to credit performance and market moves[8]. - Subsequent to June 30, 2024, Barings BDC made new commitments of approximately $55.9 million, with $45.6 million closed and funded[14].

simonkr/E+ via Getty Images In this article, we highlight our recent starter position in the Barings BDC (NYSE: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 BDC Opportunity Categories Before delving into BBDC itself, it makes sense to review the different types of allocation opportun ...