With an annual dividend yield of 11.58%, Kayne Anderson BDC, Inc. (NYSE:KBDC) is included among the 12 Ultra-High Dividend Stocks to Buy for Income Investors.
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On June 12, Wells Fargo downgraded Kayne Anderson BDC, Inc. (NYSE:KBDC) to Equal Weight from Overweight. It also lowered its price target to $14 from $15. Analyst Finian O’Shea downgraded three business development company stocks, citing more limited upside potential. In a research note, he pointed to “richer valuations and the difficulty to deliver for those in today’s environment.” He also said Wells Fargo sees a risk that continued non-accruals and loan restructurings could pressure net operating income and dividend coverage into next year.
During the company’s first-quarter 2026 earnings call, Co-CEO and Co-Chief Investment Officer Douglas Goodwillie said net investment income came in at $0.43 per share. That provided 108% coverage of the company’s quarterly dividend of $0.40 per share. He also reported a net asset value of $16.23 per share at the end of the quarter.
Goodwillie said the board approved a regular quarterly dividend of $0.40 per share for the second quarter of 2026. He added that management remained confident in its ability to maintain the dividend throughout the year, consistent with the outlook provided during the previous earnings call.
According to Goodwillie, that confidence is supported by the strength and conservative positioning of the investment portfolio. He noted that 93% of investments were first-lien loans, while borrowers had an average leverage ratio of slightly above 4x. He also highlighted the portfolio’s weighted average yield of 10.1%. In addition, the company has limited exposure to more volatile industries, with software and technology investments representing just 2% of the portfolio.
Kayne Anderson BDC, Inc. (NYSE:KBDC) is an externally managed, closed-end, non-diversified management investment company.
While we acknowledge the risk and potential of KBDC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than KBDC and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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