Why Barings BDC (BBDC) Stands Out Among Middle-Market Lenders

Barings BDC, Inc. (NYSE:BBDC) is included among the 11 Best BDC Stocks to Buy Now.

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An American publicly-traded and externally managed business development company, Barings BDC, Inc. (NYSE:BBDC) is one of the best dividend stocks in the BDC sector. The company has never missed a dividend since 2007, and currently, its quarterly dividend comes in at $0.26 per share. Moreover, with the announcement of its regular payout, the company announced a supplemental dividend of $0.05 per share in August. As of October 5, the stock supports a dividend yield of 12.08%.

Barings BDC, Inc. (NYSE:BBDC) reported strong earnings in the second quarter of 2025, with revenues of $74.4 million, which, though, fell slightly by 0.6% on a YoY basis, beat analysts’ estimates by $7.98 million.

In the first half of 2025, Barings BDC, Inc. (NYSE:BBDC)’s net investment income per share was strong enough to fully cover its regular dividends so far this year. Management credited its disciplined approach for keeping credit quality solid, noting that loans on non-accrual status made up only about 0.5% of the portfolio by fair value.

During the second quarter, roughly $200 million was deployed across both new and existing positions. This activity fits with the company’s ongoing plan to put capital into quality, income-producing investments that meet its selective standards. With more than $322 million in available liquidity and the broader Barings network behind it, the firm believes it remains well placed to deliver attractive, risk-adjusted returns to shareholders.

In the three months ending June 30, 2025, Barings BDC, Inc. (NYSE:BBDC) saw 19 new investments totaling about $137.3 million, along with another $61.7 million added to existing holdings.

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