Is Barings BDC (BBDC) a Buy for Dividend Investors Looking Under $20?

Barings BDC, Inc. (NYSE:BBDC) is included among the 13 Best Dividend Stocks to Buy Under $20.

The company reported mixed earnings in the first quarter of 2025, with revenues coming in at $64.4 million. The revenue showed a 7.7% YoY decline and also missed analysts’ estimates by $3.35 million. The company reported net investment income of $26.4 million, translating to $0.25 per share. In addition, there was a net increase in net assets from operations amounting to $32.6 million, or $0.31 per share.

For the quarter ending March 31, 2025, Barings BDC, Inc. (NYSE:BBDC) made 14 new investments amounting to $128.2 million and allocated an additional $78.7 million to existing portfolio companies. It saw the repayment of 10 loans totaling $66.1 million, resulting in a net realized loss of $10.2 million. Moreover, the company collected $33.9 million from principal payments and sales of portfolio assets, recognizing a net realized loss of $0.4 million. It also received $5.2 million in return of capital from joint ventures, equity holdings, and royalty rights investments.

Barings BDC, Inc. (NYSE:BBDC) is a strong dividend payer, paying uninterrupted dividends to shareholders since 2007. It offers a quarterly dividend of $0.26 per share and has a dividend yield of 10.95%, as of July 21.

While we acknowledge the potential of BBDC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.