Is Barings BDC (BBDC) a Buy for Dividend Investors Looking Under $20?

Barings BDC, Inc. (NYSE:BBDC) is included among the 13 Best Dividend Stocks to Buy Under $20.

Is Barings BDC (BBDC) a Buy for Dividend Investors Looking Under $20?

A close up view of a bank of computers and wires, showing the complex technology powering the company’s financial services.

The company reported mixed earnings in the first quarter of 2025, with revenues coming in at $64.4 million. The revenue showed a 7.7% YoY decline and also missed analysts’ estimates by $3.35 million. The company reported net investment income of $26.4 million, translating to $0.25 per share. In addition, there was a net increase in net assets from operations amounting to $32.6 million, or $0.31 per share.

For the quarter ending March 31, 2025, Barings BDC, Inc. (NYSE:BBDC) made 14 new investments amounting to $128.2 million and allocated an additional $78.7 million to existing portfolio companies. It saw the repayment of 10 loans totaling $66.1 million, resulting in a net realized loss of $10.2 million. Moreover, the company collected $33.9 million from principal payments and sales of portfolio assets, recognizing a net realized loss of $0.4 million. It also received $5.2 million in return of capital from joint ventures, equity holdings, and royalty rights investments.

Barings BDC, Inc. (NYSE:BBDC) is a strong dividend payer, paying uninterrupted dividends to shareholders since 2007. It offers a quarterly dividend of $0.26 per share and has a dividend yield of 10.95%, as of July 21.

While we acknowledge the potential of BBDC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BBDC and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.