Barings Bdc, Inc. Plans Quarterly Dividend of $0.26 (NYSE:BBDC)

Key Points

• Barings Bdc declared a quarterly dividend of $0.26 per share payable June 10 to holders of record on June 3, which implies an annualized yield of 11.7%.
• The firm’s payout ratio is about 105.1%, and analysts expect roughly $0.92 in EPS next year (implying a ~113% payout), indicating the dividend currently exceeds earnings and may not be sustainable from operating income alone.
• Shares fell 3.3% after the announcement; BBDC trades near $8.90 with a market cap around $931M and a P/E of 9.17, and last quarter reported $0.25 EPS (in line with estimates) but revenue of $54.7M vs. $62.5M expected.

Barings Bdc, Inc. (NYSE:BBDC - Get Free Report) announced a quarterly dividend on Thursday, May 7th. Investors of record on Wednesday, June 3rd will be given a dividend of 0.26 per share on Wednesday, June 10th. This represents a c) dividend on an annualized basis and a yield of 11.7%. The ex-dividend date of this dividend is Wednesday, June 3rd.

Barings Bdc has increased its dividend payment by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 3 consecutive years. Barings Bdc has a payout ratio of 105.1% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Barings Bdc to earn $0.92 per share next year, which means the company may not be able to cover its $1.04 annual dividend with an expected future payout ratio of 113.0%.

Barings Bdc Stock Down 3.3%

BBDC stock opened at $8.90 on Friday. The company has a market cap of $931.40 million, a price-to-earnings ratio of 9.17 and a beta of 0.61. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.10 and a current ratio of 0.10. The business's 50-day moving average is $8.51 and its two-hundred day moving average is $8.83. Barings Bdc has a fifty-two week low of $7.96 and a fifty-two week high of $9.92.

Barings Bdc (NYSE:BBDC - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.25 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.25. Barings Bdc had a return on equity of 10.05% and a net margin of 36.50%.The business had revenue of $54.66 million during the quarter, compared to the consensus estimate of $62.54 million. During the same period in the previous year, the company posted $0.25 EPS. As a group, analysts forecast that Barings Bdc will post 0.97 earnings per share for the current year.

Institutional Trading of Barings Bdc

A number of hedge funds and other institutional investors have recently bought and sold shares of BBDC. MBM Wealth Consultants LLC purchased a new position in shares of Barings Bdc during the 1st quarter valued at about $30,000. Farther Finance Advisors LLC increased its holdings in Barings Bdc by 65.6% in the 4th quarter. Farther Finance Advisors LLC now owns 3,992 shares of the company's stock worth $37,000 after acquiring an additional 1,582 shares in the last quarter. State of Alaska Department of Revenue bought a new stake in Barings Bdc during the 3rd quarter worth approximately $38,000. BNP Paribas Financial Markets bought a new stake in Barings Bdc during the 3rd quarter worth approximately $44,000. Finally, Flagship Harbor Advisors LLC purchased a new position in Barings Bdc during the fourth quarter valued at approximately $46,000. Hedge funds and other institutional investors own 44.09% of the company's stock.

About Barings Bdc

Barings BDC Inc NYSE: BBDC is a closed-end, externally managed business development company that provides flexible financing solutions to middle-market companies. As an investment vehicle organized under the Investment Company Act of 1940, BBDC seeks to generate both current income and capital appreciation by investing primarily in senior secured loans, second lien loans, mezzanine debt and equity co-investments. The company targets established businesses across a diverse range of industries, including healthcare, industrials, consumer products and business services.

The company is sponsored and managed by Barings LLC, a global investment manager and subsidiary of Massachusetts Mutual Life Insurance Company (MassMutual).

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