In this article, we will take a look at the 5 Best BDC Stocks to Buy Right Now. For deeper discussion and analysis, read 10 Best BDC Stocks to Buy Right Now.
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5. Barings BDC, Inc. (NYSE:BBDC)
Number of Hedge Fund Holders: 13
On April 28, Lucid Capital initiated coverage of Barings BDC, Inc. (NYSE:BBDC) with a Neutral rating and a $9.25 price target. The analyst said the company benefits from access to a broad range of sponsor deal flow, along with “differentiated non-sponsor transactions and distinct platform investments.” In the same note, the firm added that near-term multiple expansion may be limited without a broader rerating across the industry.
During the Q4 2025 earnings call, CFO Elizabeth Murray indicated that heading into 2026, a decline in base rates, as suggested by the forward SOFR curve, could weigh on net investment income. He said this could put pressure on the company’s regular dividend, which may come down from current levels.
Management also pointed to the possibility of a lower base dividend in 2026. At the same time, they noted that BBDC’s diversified portfolio and strong balance sheet should provide flexibility as the rate environment shifts.
Barings BDC, Inc. (NYSE:BBDC) is a closed-end, non-diversified investment company. Its focus is on generating current income by investing directly in privately held middle-market companies, helping fund acquisitions, growth initiatives, and refinancing needs.
4. Main Street Capital Corporation (NYSE:MAIN)
Number of Hedge Fund Holders: 21
On April 22, Citizens lowered its price target on Main Street Capital Corporation (NYSE:MAIN) to $70 from $74 and maintained an Outperform rating on the shares. In a research note, the analyst described Q1 as an important period for private capital. The focus, in their view, is starting to shift back to underlying fundamentals, even with recent market volatility and ongoing concerns around non-traded BDC flows. They pointed out that valuation multiples are at multi-cycle lows, while fundamentals remain steady. Areas like institutional fundraising, capital deployment, and monetization continue to hold up. As that gap between market perception and actual performance narrows, the firm believes valuations could begin to recover.
On April 21, Main Street announced that it had completed a follow-on investment in an existing portfolio company, UBM ParentCo, LLC, which operates as United Business Mail. UBM is a provider of “marketing mail” commingle services, focused on improving postage efficiency, transportation, and delivery performance for large-scale mailers.
Main Street, together with its co-investor MSC Income Fund, made the additional investment to support UBM’s acquisition of a national provider of asset-light palletized mail consolidation, mail optimization services, freight brokerage, and warehousing and distribution. The target company serves both B2B and B2C customers. Main Street’s portion of the follow-on investment included $15.6 million in first lien, senior secured term debt. Both Main Street and the MSC Income Fund first invested in UBM in December 2025.
Main Street Capital Corporation (NYSE:MAIN) operates as a principal investment firm. It provides long-term debt and equity capital to lower middle market companies, along with debt financing to private businesses owned by, or being acquired by, private equity funds.
3. Hercules Capital, Inc. (NYSE:HTGC)
Number of Hedge Fund Holders: 23
On April 22, Citizens analyst Devin Ryan lowered the firm’s price recommendation on Hercules Capital, Inc. (NYSE:HTGC) to $22 from $24. It reiterated an Outperform rating on the shares. In a research note, he described Q1 as a key period for private capital. He said attention is shifting back to underlying fundamentals, even with recent volatility and concerns around non-traded BDC flows. He pointed out that valuation multiples are at multi-cycle lows, while fundamentals continue to hold up. He highlighted strength in institutional fundraising, deployment, and monetization. As the gap between perception and actual performance narrows, the firm expects valuations to recover.
Earlier in April, Hercules Capital announced a new all-time record of debt and equity commitments for the first quarter of 2026. For the three months ended March 31, 2026, the company originated $1.81 billion in new commitments across 16 new and 12 existing portfolio companies.
Hercules Capital, Inc. (NYSE:HTGC) is a specialty finance company focused on providing senior secured venture growth loans to high-growth, venture-backed companies across technology and life sciences sectors.
2. Golub Capital BDC, Inc. (NASDAQ:GBDC)
Number of Hedge Fund Holders: 24
On April 17, RBC Capital analyst Kenneth Lee initiated coverage of Golub Capital BDC, Inc. (NASDAQ:GBDC) with an Outperform rating. The analyst also set a $15 price target on the stock. In a research note, he said that with investors focused on credit, RBC favors Golub’s long-term record of lower loss experience compared to peers and its reputation as a disciplined credit underwriter. He also noted that the company’s portfolio is “relatively differentiated,” with a focus on the core middle-market segment.
With Q1 earnings approaching, management had already taken a cautious stance during the Q4 2025 call. They indicated that current headwinds are likely to persist and that the firm is preparing for a challenging 2026. They also said the dividend framework has been reset, with a base distribution of $0.33 per share and a variable component equal to 50% of earnings above that level.
Management added that the current environment, including lower base rates, tighter spreads, softer M&A activity, and continued credit pressure, is expected to remain in place.
Golub Capital BDC, Inc. (NASDAQ:GBDC) is an externally managed, non-diversified closed-end investment company. Its objective is to generate current income and capital appreciation by investing mainly in one-stop and other senior secured loans to U.S. middle-market companies.
1. Ares Capital Corporation (NASDAQ:ARCC)
Number of Hedge Fund Holders: 28
On April 29, B. Riley lowered its price recommendation on Ares Capital Corporation (NASDAQ:ARCC) to $20 from $22. It reiterated a Buy rating on the shares. In a research note, the analyst said the company reported mixed Q1 results. Net investment income came in below expectations, and NAV declined, mainly due to portfolio markdowns.
During the Q1 2026 earnings call, CEO Kort Schnabel said the company generated core earnings of $0.47 per share. He noted that the market appears to be going through a reset, with wider spreads, lower leverage, and more favorable deal terms starting to show up. He added that new deals are being discussed with an extra 50 to 75 basis points in fees and spreads. He also pointed out that the company’s roughly $6 billion in available liquidity puts it in a strong position, especially as market volatility and retail outflows reduce competitive pressure.
Ares Capital Corporation (NASDAQ:ARCC) is a specialty finance company focused on providing direct loans and other investments to private middle-market companies in the United States. It primarily invests in first lien senior secured loans, including unitranche structures, as well as second lien senior secured loans.
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