Barings BDC Inc (NYSE:BBDC)
Number of hedge fund investors: 12
Business development company Barings BDC (NYSE:BBDC) is a hot financial stock that saw some insider buying activity earlier this month. Barings BDC Company (NYSE:BBDC) Director Steve Byers purchased 570 shares of Barings BDC Company (NYSE:BBDC) at a price of $9.7 per share. The transaction took place on February 28, 2024, and the stock price has increased approximately 0.8% since then through May 13.
Earlier this month, Barings announced its previous quarterly dividend of $0.26 per share. The future dividend yield was a whopping 10.9%. Barings BDC's dividend makes it an attractive investment for the BDC industry Barings BDC's net investment income per share in the first quarter was $0.28, for total investment income of $69.81 million (compared to $67.2 million in the prior year period). Barings BDC is an attractive stock in his BDC sector due to its dividend. The company's net investment income covers its dividends. Over the past year and a half, the company has managed to increase its dividend. The high interest rate environment favors the company as it can generate more net interest income from fixed income investments.
Photo by Ruben Sukatendel on Unsplash At a financial results conference earlier this month, Barings talked about its dividend policy and financial situation as follows:
“The Company continues to maintain a conservative underlying dividend policy, and the Board declared a fourth quarter dividend of $0.26 per share, consistent with the previous quarter. On an annualized basis, the dividend level is 9.1% yield on net assets of $11.44. ” We believe that the best measures of portfolio performance – receivables, net asset value and NII – were very convincing in the March quarter and will continue to be in the coming quarters. We expect the performance to continue to be strong. [read the full earnings call transcript here]. ”
According to Insider Monkey's database of 933 hedge funds, 12 hedge funds reported holding shares in Barings BDC Inc (NYSE:BBDC) at the end of 2023. The largest stake in Barings BDC Inc (NYSE:BBDC) is owned by James Morrow's Carodine Capital. Management team, valued at $18.3 million.
Despite this positive sentiment, questions arise about the stock price. Is this the best dividend stock that insiders are buying in 2024? Does it make sense for retail investors to buy Barings BDC (NYSE:BBDC) right now? Barings BDC Inc (NYSE:BBDC) is not the best financial dividend stock with recent insider buying, according to Insider Monkey's analysis. Click to see 10 best dividend stocks with insider purchases than Barings BDC. Disclosure: None
