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

Key Points

• Barings BDC declared a $0.26-per-share quarterly dividend, payable December 9 to shareholders of record December 2. The annualized dividend is $1.04, equivalent to a 11.9% yield.
• The dividend may be difficult to sustain from earnings: the current payout ratio is 105.1%, and analysts’ expected next-year EPS of $1.02 falls short of the $1.04 annual dividend.
• Quarterly EPS was $0.24, below the $0.26 consensus estimate, although revenue of $64.29 million topped expectations. Analysts’ average rating is Hold, with an average price target of $9.50.

Barings Bdc, Inc. (NYSE:BBDC - Get Free Report) declared a quarterly dividend on Thursday, November 5th. Investors of record on Wednesday, December 2nd will be given a dividend of $0.26 per share on Wednesday, December 9th. This represents a $1.04 dividend on an annualized basis and a yield of 11.9%. The ex-dividend date is Wednesday, December 2nd.

Barings Bdc has raised its dividend by an average of 0.1% annually over the last three years and has raised its dividend every year for the last 3 years. Barings Bdc has a payout ratio of 105.1% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Barings Bdc to earn $1.02 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 102.0%.

Barings Bdc Price Performance

Shares of Barings Bdc stock opened at $8.74 on Friday. Barings Bdc has a 52 week low of $7.96 and a 52 week high of $9.53. The company has a current ratio of 0.09, a quick ratio of 0.09 and a debt-to-equity ratio of 0.24. The stock has a market cap of $915.69 million, a PE ratio of 7.96 and a beta of 0.65. The company's 50-day moving average price is $8.70 and its two-hundred day moving average price is $8.67.

Barings Bdc (NYSE:BBDC - Get Free Report) last posted its quarterly earnings data on Thursday, November 5th. The company reported $0.24 earnings per share for the quarter, missing the consensus estimate of $0.26 by ($0.02). The business had revenue of $64.29 million for the quarter, compared to the consensus estimate of $63.54 million. Barings Bdc had a net margin of 32.73% and a return on equity of 10.07%. During the same quarter last year, the business posted $0.22 EPS. As a group, sell-side analysts anticipate that Barings Bdc will post 1.04 EPS for the current fiscal year.

Analysts Set New Price Targets

Several analysts recently commented on the stock. Weiss Ratings lowered shares of Barings Bdc from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday, September 16th. Raymond James Financial set a $9.00 price target on shares of Barings Bdc in a research report on Thursday, October 22nd. Wells Fargo & Company upped their price target on Barings Bdc from $9.50 to $10.00 and gave the company an "overweight" rating in a report on Monday, August 10th. Finally, Zacks Research downgraded Barings Bdc from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, July 22nd. One equities research analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $9.50.

About Barings Bdc

Barings BDC, Inc NYSE: BBDC is a business development company that provides financing to privately owned, middle-market businesses. The company seeks to support companies across a range of industries by investing in their debt and equity securities.

Barings BDC primarily invests in senior secured loans, including first-lien and second-lien debt, as well as subordinated debt and selected equity investments. Its portfolio companies are generally based in the United States and may use the financing for acquisitions, recapitalizations, refinancing, growth initiatives, and other corporate purposes.

The company was formerly known as Triangle Capital Corporation and adopted the Barings BDC name following a change in its investment management arrangements.

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