What Will It Take To Halt BDC Dividend Cuts? 1 Catalyst On The Horizon

Summary

• 14 BDCs have base dividend coverage levels between 100% and 105%.
• 16 BDCs have them already below 100%.
• Given the unfavorable future earnings outlook, a system-wide BDC dividend cutting process is very likely to start quite soon.
• Yet, there is one relatively realistic catalyst that could reverse the course for some BDCs.
• In this article, I elaborate on that catalyst and share a way to play it.