5 Best BDC Stocks To Buy For the Rest of 2023

In this article, we discuss 5 best BDC stocks to buy for the rest of 2023. If you want to read our detailed analysis of the business development sector and the performance of dividend stocks, go directly to read 11 Best BDC Stocks to Buy for the Rest of 2023.

5. PennantPark Investment Corporation (NYSE:PNNT)

Number of Hedge Fund Holders: 9

PennantPark Investment Corporation (NYSE:PNNT) is an American business development company that focuses on investing in middle-market businesses. They provide different types of financing, including loans and investments in these companies. On August 9, the company announced a 5% hike in its quarterly dividend to $0.21 per share. This was the company’s fifth consecutive quarter of dividend growth, which makes it one of the best dividend stocks on our list. As of September 26, the stock has a dividend yield of 12.98%.

At the end of Q2 2023, 9 hedge funds in Insider Monkey’s database reported having stakes in PennantPark Investment Corporation (NYSE:PNNT), which remained unchanged from the previous quarter. The collective value of these stakes is nearly $26 million. With 2 million shares, Callodine Capital Management was the company’s largest stakeholder in Q2.

4. Hercules Capital, Inc. (NYSE:HTGC)

Number of Hedge Fund Holders: 12

Hercules Capital, Inc. (NYSE:HTGC) is a capital markets company, based in California, US. The company provides senior secured venture growth loans to venture capital-backed companies. It currently pays a quarterly dividend of $0.40 per share, having raised it by 2.6% on August 1. Through this increase, the company took its dividend growth streak to five years, which places it as one of the best dividend stocks on our list. In addition to this, Hercules Capital, Inc. (NYSE:HTGC) has a strong history of paying supplemental dividends to shareholders. The stock’s dividend yield on September 26 came in at 9.73%.

As of the close of Q2 2023, 12 hedge funds tracked by Insider Monkey owned stakes in Hercules Capital, Inc. (NYSE:HTGC), growing from 9 in the previous quarter. The consolidated value of these stakes is roughly $30 million.

3. Barings BDC, Inc. (NYSE:BBDC)

Number of Hedge Fund Holders: 12

Barings BDC, Inc. (NYSE:BBDC) is one of the leading business development companies that primarily specializes in providing financing and capital to middle-market companies. On August 9, the company declared a 4% increase in its quarterly dividend to $0.26 per share. It has raised its dividends many times since 2018, coming through as one of the best dividend stocks on our list. As of September 26, the stock has a dividend yield of 11.89%.

Barings BDC, Inc. (NYSE:BBDC) was a part of 12 hedge fund portfolios at the end of Q2 2023, up from 11 in the previous quarter, as per Insider Monkey’s database. The collective value of stakes owned by these hedge funds is over $38.6 million.

2. Main Street Capital Corporation (NYSE:MAIN)

Number of Hedge Fund Holders: 12

Main Street Capital Corporation (NYSE:MAIN) is next on our list of the best dividend stocks from the BDC sector. The capital market company pays monthly dividends to shareholders and has been paying uninterrupted dividends to shareholders since 2007. The company offers a monthly dividend of $0.235 per share for a dividend yield of 7%, as recorded on September 26.

The number of hedge funds tracked by Insider Monkey reported having stakes in Main Street Capital Corporation (NYSE:MAIN) grew to 12 in Q2 2023, from 9 in the previous quarter. The collective value of these stakes is over $51 million.

1. Ares Capital Corporation (NASDAQ:ARCC)

Number of Hedge Fund Holders: 18

An American business development company, Ares Capital Corporation (NASDAQ:ARCC) tops our list of the best dividend stocks. The company currently pays a quarterly dividend of $0.48 per share and has a dividend yield of 9.85%, as of September 26. It has been growing its dividends consistently for the past three years.

At the end of June 2023, 18 hedge funds in Insider Monkey’s database held stakes in Ares Capital Corporation (NASDAQ:ARCC), compared with 19 in the previous quarter. The consolidated value of these stakes is $127.7 million.

You can also take a look at 10 Best Regional Bank ETFs and 13 Best American Energy Stocks To Buy Now

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