Business Development Companies (BDCs) Stocks Offer High Yields

Business development companies (BDCs) pay high dividends and may be appropriate for income portfolios. However, these stocks could react negatively to increasing interest rates.


The following table includes 7 BDC stocks.


7 BDC Stocks

Name
& Monthly Returns

Symbol
& Snapshot

Dividend (Yield)
& Dividend Chart

Ares Capital CorporationARCC$1.84 (9.67%)
FS KKR Capital CorpFSK$2.68 (13.05%)
Golub Capital BDCGBDC$1.20 (8.98%)
Hercules Technology Growth CapitalHTGC$2.00 (13.11%)
New Mountain FinanceNMFC$1.20 (9.38%)
Owl Rock Capital CorporationORCC$1.24 (11.99%)
PennantPark InvestmentPNNT$0.60 (9.65%)
Dividend data from Alpha Vantage as of Oct-01-2022.


7 BDC Stocks

Name
& Last 100 Days Returns

Symbol

Last Close
& 100-Day Trendline Chart

Ares Capital CorporationARCC$16.88
FS KKR Capital CorpFSK$16.95
Golub Capital BDCGBDC$12.39
Hercules Technology Growth CapitalHTGC$11.58
New Mountain FinanceNMFC$11.53
Owl Rock Capital CorporationORCC$10.37
PennantPark InvestmentPNNT$5.46


Portfolio Values

To inspect the performance of the BDC Stocks portfolio, see the chart below. Portfolio values are computed using monthly closes for stocks from Alpha Vantage.

The 6 stocks included in the portfolio computations are: ARCC, FSK, GBDC, HTGC, NMFC and PNNT. The current value of the portfolio assumes that $1,666.67 was invested in each stock at its closing monthly price for the first date shown on the portfolio value chart below. All prices are adjusted for splits and dividends. ORCC was excluded from the portfolio computations because of insufficient price data.

The current value of the $10,000 investment is $12,825. The percent return is 28.25%. The annualized return is 5.10%.


6 BDC Stocks Returns

Name

Symbol

Monthly Returns & Details

Ares Capital CorporationARCC64.41%
FS KKR Capital CorpFSK-4.28%
Golub Capital BDCGBDC0.22%
Hercules Technology Growth CapitalHTGC50.98%
New Mountain FinanceNMFC34.08%
PennantPark InvestmentPNNT24.06%


Portfolio Value Chart for Last 100 Daily Closes



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