MicroStockHub/iStock via Getty Images Business Development Companies carry a mix of financial characteristics that support high dividend income investing strategies. For example, most of the BDCs out there provide double digit dividends, where it would be difficult to find one, which yields something materially below the 10% mark. Another element that makes BDCs so attractive for dividend investors is that there is an inherent growth component, which allows to enjoy growing distributions and extract the ...

LOS ANGELES, Aug. 12, 2024 (GLOBE NEWSWIRE) -- Crescent Capital BDC, Inc. (“Crescent BDC” or “Company”) (NASDAQ: CCAP) today reported net investment income of $0.59 per share and net income of $0.55 per share for the quarter ended June 30, 2024. Net asset value per share increased to $20.30 compared to $20.28 as of March 31, 2024. Dividend Declarations   The Company’s Board of Directors (the “Board”) declared a third quarter 2024 regular cash dividend of $0.42 per share to stockholders of record as of Septe ...

Galeanu Mihai Mid May, this year, I wrote an article on Barings BDC (NYSE:BBDC) outlining a relatively neutral thesis on this particular BDC. While the quarter brought several messages of improving fundamentals and defensive dividend coverage, there were still a couple of issues unresolved such as high concentration in portfolio companies that are performing below expectations, high leverage and potential consequences of forthcoming fixed rate debt rollovers. As a result of this, my decision was to not ...

J Studios Co-authored by Treading Softly What's your favorite flavor of ice cream? What's your favorite food? Do you have a favorite car brand? Maybe a favorite brand for the sneakers you like to buy, or the jeans you prefer? Perhaps you have a favorite electrician or auto body shop? It's natural to develop a tendency towards having preferences because you have previously had positive experiences, or societal pressure encourages you to believe certain things are superior to others. Investors often have pref ...

Abstract Aerial Art Ares Capital (NASDAQ:ARCC) reported better than expected results for the second fiscal quarter at the end of July and the business development company continues to see good balance sheet quality as well as a dividend that is well-supported by net investment income. Shares sold off this week, on fears over a recession, but Ares Capital's results for Q2'24 were solid in more ways than just one. New investments boomed, and I believe, from a fundamental point of view, that Ares Capital i ...

8vFanI Rising interest rates have been a boon for business development companies such as Hercules Capital (NYSE:HTGC) since Q2 '22, given that their investments are mainly at floating rates, whereas the majority of their borrowings are usually at fixed rates. To note: 97.4% of HTGC's debt investments were at floating rates, as of 6/30/24. With the market currently thinking that the Fed will start dropping rates at its September meeting, it could be an about face for BDCs. HTGC's management reckons that a 50 ...

Net profit, also referred to as the bottom line, is one of the key tools determining the financial health of an enterprise. The metric demonstrates a company’s ability to convert per-dollar sales into profits.A low profit margin indicates higher risks, implying that a revenue drop might dampen profits, thus pushing a company into the red. Belden Inc. (BDC) , EZCORP, Inc. (EZPW) , The Gorman-Rupp Company (GRC) and Cantaloupe, Inc. (CTLP) , however, boast solid net profit margins.Net Profit Margin = Net profi ...

Kohei Hara/DigitalVision via Getty Images Co-authored by Treading Softly. The biggest mistake we can often make when it comes to investing or life, in general, is overcomplicating things. We tend to overcomplicate things because we may be knowledgeable in the subject and want to apply all we know to the situation, often making it much more difficult than necessary. Recently, a friend was telling me about how he needed to cut out wood boards in a trapezoid shape to fit a space and make a bench. He spent ...

8vFanIRising interest rates have helped business development companies greatly over the past 1.5 years. Golub Capital BDC (NASDAQ:GBDC) reported strong earnings for its fiscal 2023, (period ending 9/30/23), with 55.5% revenue growth and 49% NII growth, with NII/Share rising ~48%. Earnings have remained strong in the two most recent quarters, (fiscal Q1-Q2, period ending 3/31/24), albeit not quite as spectacular as fiscal 2023, with revenue up 16%, NII up 29%, and NII/share up 30%. In addition, NAV/share ...

Melpomenem/iStock via Getty Images Introduction If you're an income-oriented investor and you currently don't own Ares Capital (NASDAQ:ARCC), then their recent quarter should convince you otherwise. The BDC has a long track record and in my opinion, is a must-own for income investors because of it. I do have some quarrels with the company, which I'll touch on later in the article. I also discuss why if you're looking to buy, I would wait for a potential pullback before doing so. Additionally, I touch on ...