Quick Read – Ares Capital (ARCC) trades below its $20 NAV with a 10% yield, while Trinity Capital (TRIN) surged 36% year-to-date delivering 15.8% effective yields. – Golub Capital (GBDC) repurchases shares at 84% of its $14 NAV, making each buyback directly accretive to book…
lue at an 11.6% yield. – Non-accrual trends, spread direction, and dividend coverage ratios will determine whether these double-digit BDC yields hold through the second half. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Ares Capital didn’t make the cut. Grab the names FREE today
Business development companies (BDCs) remain one of the most efficient income vehicles in public markets, and August is shaping up to be a constructive month to lean into the space. BDCs are required to distribute roughly 90% of taxable income to shareholders, which is why headline yields routinely sit in double digits. Those distributions are generally taxed as ordinary income, so BDCs typically work best inside tax-advantaged accounts.
With the Fed’s rate path finally stabilizing and lending spreads widening again, the strongest BDC balance sheets are positioned to deploy capital at more favorable terms than they saw a year ago. Here are three names worth a serious look this month, each attacking the middle-market lending opportunity from a different angle. Ares Capital (ARCC) Ares Capital (NASDAQ:ARCC) is the anchor holding for anyone building a BDC sleeve.