10 Best Dividend-Paying Stocks Under $15

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

Number of Hedge Fund Holders: 12

Share Price as of the Close of July 31: $10.03

Barings BDC, Inc. (NYSE:BBDC) is an American business development company that offers debt investments in middle-market companies. The company is distinguished as one of the leading business development companies in its sector, thanks to its knack for capitalizing on growth opportunities and delivering significant value to shareholders. Over the past year, it has surpassed many competitors and broader market indices, achieving an impressive total shareholder return of over 19%. This is especially notable given the company’s low-risk profile. Typically, high returns are associated with high-risk, high-beta stocks. In contrast, the company provides lower risk through its stable end markets, attractive dividends, and rising net asset value. Its five-year monthly beta of approximately 0.70 reflects its lower volatility compared to the overall market.

Barings BDC, Inc. (NYSE:BBDC) also gains significantly from the expanding business development sector. The BDC industry is experiencing rapid growth, with assets under management hitting a record $315 billion as of March 2024. Additionally, capital flow into BDCs remained strong throughout 2022 and early 2023, as investors rebalanced their portfolios. The company has been concentrating on growth opportunities to improve its portfolio value and increase net investment income. In the first quarter of 2024, the company invested $143 million in both new and existing companies. Its net investment income for the quarter was approximately $30 million. Moreover, the company reported nearly $70 million in revenues, marking a 4% increase from the same period last year.

Barings BDC, Inc. (NYSE:BBDC) made it to our list of the best dividend stocks under $15 as the company remains committed to its shareholder obligation, in addition to maintaining strong business fundamentals. The company has raised its payouts for five consecutive years in a row and offers a quarterly dividend of $0.26 per share. The stock offers an impressive dividend yield of 10.42% as of August 1. Its YoY quarterly base dividend growth comes in at 4%, compared with an industry’s mean of 3.1%.

Insider Monkey’s database of Q1 2024 indicated that 12 hedge funds owned stakes in Barings BDC, Inc. (NYSE:BBDC), which remained unchanged from the previous quarter. These stakes have a total value of more than $35.5 million. Among these hedge funds, Callodine Capital Management was the company’s leading stakeholder in Q1.