12 Incredibly Cheap Dividend Stocks to Buy Now

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

Forward P/E Ratio as of March 14: 8.43

Barings BDC, Inc. (NYSE:BBDC) is an American business development company, headquartered in North Carolina. The company specializes in debt investments in middle-market companies. It has established itself as a leading business development company by capitalizing on growth opportunities and delivering strong returns for shareholders. Over the past year, its stock has gained nearly 3%, a notable achievement given its relatively low-risk nature. Unlike high-volatility stocks that offer higher return potential but come with greater risk, Barings BDC provides a more stable investment option. Its steady market presence, attractive dividend payouts, and rising net asset value contribute to its reputation as a lower-risk choice for investors.

In the fourth quarter of 2024, Barings BDC, Inc. (NYSE:BBDC) reported a total investment income of $70.6 million, which fell by 6.9% from the same period last year. The company reported net investment income of $29.5 million, or $0.28 per share, while net assets grew by $24.8 million, or $0.24 per share. It expanded its portfolio with 15 new investments totaling $137.9 million and allocated an additional $156.5 million to existing portfolio companies. Additionally, the company made a $3.5 million equity co-investment alongside certain affiliates in a portfolio firm that provides financing to plaintiff law firms involved in mass tort and other civil litigation cases.

Barings BDC, Inc. (NYSE:BBDC) offers a quarterly dividend of $0.26 per share and has a dividend yield of 11.10%, as of March 14. Given the company’s strong performance, confidence in its portfolio, and positive momentum in early 2025, it has also declared a special dividend totaling $0.15 per share, which will be distributed in three equal quarterly installments beginning in March. It is one of the best dividend stocks on our list as the company has been making regular dividend payments since 2007.