In this article, we will be taking a look at 5 BDC Dividend Stocks for Increased Income. To read our detailed analysis of dividend investing, you can go directly to see the 10 BDC Dividend Stocks for Increased Income.
5. Trinity Capital Inc. (NASDAQ: TRIN)
Number of Hedge Fund Holders: 13
Dividend Yield: 6.9%
Trinity Capital Inc. (NASDAQ: TRIN), a business development company and venture capital firm, works with venture debt to growth-stage companies that require loans and/or equipment financing. The company ranks 5th on our list of BDC dividend stocks for increased income.
This May, Ladenburg upgraded shares of Trinity Capital Inc. (NASDAQ: TRIN) from Neutral to Buy, with a $17 price target.
In the second quarter of 2021, Trinity Capital Inc. (NASDAQ: TRIN) had an EPS of $0.38, beating estimates by $0.06. The company’s revenue was $19.48 million, beating estimates by $1.7 million. Trinity Capital Inc. (NASDAQ: TRIN) has gained 11.72% in the past 6 months and 8% year to date.
By the end of the second quarter of 2021, 13 hedge funds out of the 873 tracked by Insider Monkey held stakes in Trinity Capital Inc. (NASDAQ: TRIN) worth roughly $23.2 million. This is compared to 12 hedge funds in the previous quarter with a total stake value of approximately $24.2 million.
4. Barings BDC, Inc. (NYSE: BBDC)
Number of Hedge Fund Holders: 15
Dividend Yield: 7.1%
Barings BDC, Inc. (NYSE: BBDC), a publicly traded and externally managed investment company working as a business development company, is 4th on our list of BDC dividend stocks for increased income. The company is based in Charlotte, NC.
This June, BofA double-upgraded shares of Barings BDC, Inc. (NYSE: BBDC) from Underperform to Buy, with an $11.25 price target.
In the second quarter of 2021, Barings BDC, Inc. (NYSE: BBDC) had an NII of $0.22, in line with estimates. The company’s TII was $33.15 million, up 105.42% year over year and beating estimates by $3.12 million. Barings BDC, Inc. (NYSE: BBDC) has gained 8.67% in the past 6 months and 20.55% year to date.
By the end of the second quarter of 2021, 15 hedge funds out of the 873 tracked by Insider Monkey held stakes in Barings BDC, Inc. (NYSE: BBDC) worth roughly $63 million. This is compared to 14 hedge funds in the previous quarter with a total stake value of approximately $60.3 million.
3. PennantPark Investment Corporation (NASDAQ: PNNT)
Number of Hedge Fund Holders: 7
Dividend Yield: 7.3%
PennantPark Investment Corporation (NASDAQ: PNNT) works with direct and mezzanine investments in middle market companies, and ranks 3rd on our list of BDC dividend stocks for increased income. The company is based in New York.
As of this July, Oppenheimer holds a Perform rating on shares of PennantPark Investment Corporation (NASDAQ: PNNT), alongside a $7.50 price target.
In the fiscal third quarter of 2021, PennantPark Investment Corporation (NASDAQ: PNNT) had an NII of $0.48, beating estimates by $0.33. The company’s TII was $20.49 million, also beating estimates by $0.33 million. PennantPark Investment Corporation (NASDAQ: PNNT) has gained 13.49% in the past 6 months and 46.10% year to date.
By the end of the second quarter of 2021, 7 hedge funds out of the 873 tracked by Insider Monkey held stakes in PennantPark Investment Corporation (NASDAQ: PNNT) worth roughly $25 million. This is compared to 8 hedge funds in the previous quarter with a total stake value of approximately $22 million.
2. Saratoga Investment Corp. (NYSE: SAR)
Number of Hedge Fund Holders: 2
Dividend Yield: 7.7%
Saratoga Investment Corp. (NYSE: SAR) specializes in leveraged and management buyouts, acquisition financings, growth financings, and recapitalizations, among other related areas. The company ranks 2nd on our list of BDC dividend stocks for increased income.
Maxim raised its price target on shares of Saratoga Investment Corp. (NYSE: SAR) this July, from $29 to $31. The firm also holds a Buy rating on the stock.
In the fiscal first quarter of 2022, Saratoga Investment Corp. (NYSE: SAR) had an NII of $0.23, missing estimates by $0.27. The company’s TII was $16.82 million, up 26.46% year over year and beating estimates by $1.56 million, however. Saratoga Investment Corp. (NYSE: SAR) has gained 26.88% in the past 6 months and 40.72% year to date.
By the end of the second quarter of 2021, 2 hedge funds out of the 873 tracked by Insider Monkey held stakes in Saratoga Investment Corp. (NYSE: SAR) worth roughly $1.3 million. This is compared to 2 hedge funds in the previous quarter with a total stake value of approximately $3.3 million.
1. BlackRock Capital Investment Corporation (NASDAQ: BKCC)
Number of Hedge Fund Holders: 10
Dividend Yield: 9.5%
BlackRock Capital Investment Corporation (NASDAQ: BKCC) was initially operating under the name of BlackRock Kelso Capital Corporation, and is a business development company based in New York. The company ranks 1st on our list of BDC dividend stocks for increased income and invests in all industries, specializing in investing in middle-market companies.
In the second quarter of 2021, BlackRock Capital Investment Corporation (NASDAQ: BKCC) had an NII of $0.07, in line with estimates. The company’s TII was $10.86 million, beating estimates by $0.86 million. BlackRock Capital Investment Corporation (NASDAQ: BKCC) has gained 20.11% in the past 6 months and 57.74% year to date.
By the end of the second quarter of 2021, 10 hedge funds out of the 873 tracked by Insider Monkey held stakes in BlackRock Capital Investment Corporation (NASDAQ: BKCC) worth roughly $11.2 million. This is compared to 6 hedge funds in the previous quarter with a total stake value of approximately $8 million.
See also 10 Best Dividend Stocks to Buy According to Billionaire Howard Marks and 10 Best Vanguard Stocks to Buy Now.
