5 Best Financial Stocks that Pay Dividends

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

Number of Hedge Fund Holders: 14
Dividend Yield: 7.60%

Barings BDC, Inc. (NYSE: BBDC), another capital market company, ranks 2nd on our list of the best financial stocks that pay dividends. The company is a closed-end management investment corporation.

This June, Derek Hewett from BofA upgraded Barings BDC, Inc. (NYSE: BBDC) from Underperform to Buy, keeping an $11.95 price target on the company’s shares as well.

In the first quarter of 2021, Barings BDC, Inc. (NYSE: BBDC) had an NII of $0.22, beating estimates by $0.02. The company’s TII was $30.59 million, up 63.78% year over year and beating estimates by $3.72 million. Barings BDC, Inc. (NYSE: BBDC) has also gained 17.13% in the past 6 months and 15.08% year to date.

By the end of the first quarter of 2021, 14 hedge funds out of the 866 tracked by Insider Monkey held stakes in Barings BDC, Inc. (NYSE: BBDC) worth roughly $60.2 million. This is compared to 15 hedge funds in the previous quarter with a total stake value of approximately $69.2 million.