1. Barings BDC, Inc. (NYSE:BBDC)
Share Price as of the Close of March 17: $9.43
Forward P/E Ratio as of March 17: 8.44
Barings BDC, Inc. (NYSE:BBDC) is a North Carolina-based business development company that specializes in debt investments in middle-market companies. In the fourth quarter of 2024, the company generated total investment income of $70.6 million, reflecting a 6.9% decline compared to the same period the previous year. The company reported net investment income of $29.5 million, or $0.28 per share, while net assets increased by $24.8 million, or $0.24 per share. Expanding its portfolio, it added 15 new investments worth $137.9 million and committed an additional $156.5 million to existing portfolio companies. Furthermore, the company participated in a $3.5 million equity co-investment alongside affiliated entities in a portfolio company that provides financing to plaintiff law firms engaged in mass tort and other civil litigation cases.
Barings BDC, Inc. (NYSE:BBDC) has positioned itself as a leading business development firm by seizing growth opportunities and generating strong shareholder returns. Over the past year, its stock has risen over 2.5%, an impressive feat given its relatively lower-risk profile. Unlike high-volatility stocks that may offer greater returns but come with heightened uncertainty, Barings BDC presents a more stable investment choice. Its consistent market performance, reliable dividend distributions, and increasing net asset value contribute to its reputation as a lower-risk option for investors.
Barings BDC, Inc. (NYSE:BBDC)’s quarterly dividend comes in at $0.26 per share and has a dividend yield of 11.06%, as recorded on March 17. With confidence in its portfolio and sustained positive momentum in early 2025, the company has also announced a special dividend totaling $0.15 per share, to be distributed in three equal quarterly payments starting in March. The company has been making regular dividend payments to shareholders since 2007.
Overall, Barings BDC, Inc. (NYSE:BBDC) ranks first on our list of the best low priced stocks that pay dividends. While we acknowledge the potential of BBDC as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than BBDC but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
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