BDC Weekly Review: Reports Of Dividend Cuts Greatly Exaggerated

Oct. 26, 2025 11:22 PM ET
ADS Analytics
Investing Group Leader

Summary

  • We take a look at the action in business development companies through the third week of October and highlight some of the key themes we are watching.
  • Business Development Companies (BDCs) are showing strong fundamentals, with early Q3 NAV reports and dividend announcements exceeding bearish expectations.
  • Despite recent sell-offs, BDC valuations are pricing in a recession that isn't materializing, creating attractive buying opportunities for income investors.
  • Remain upbeat on the sector due to high yields, positive NAV trends, and market overreaction to isolated credit events outside the BDC space.

Percentage sign

Richard Drury/DigitalVision via Getty Images

Welcome to another installment of our CEF Market Weekly Review, where we discuss closed-end fund [CEF] market activity from both the bottom-up – highlighting individual fund news and events – as well as the top-down – providing an overview of the broader market. We

Recommended For You

Create a free account to read the full article

Gain access to the world's leading investment community.

Already registered?

By creating an account using any of the options above, you agree to the Terms of Use & Privacy Policy
or

Related Analysis

Trending Analysis

See All Analysis »

Trending News

See All News »
ADS Analytics
Leader of Systematic Income
Income investing across BDCs, CEFs, ETFs, preferreds, baby bonds and more.
What subscribers are saying:
eben22
Nov. 16, 2024 8:54 AM
I’ve been a member for a bit over 6 months and have found the Systematic Income service to be top notch! I joined the service looking for fixed income portfolio suggestions. What I have received instead is not only securities picks but a thorough, thought out explanation as to the reasoning for every portfolio move! The education alone I’ve received is worth the cost of membership. The author is very responsive to questions on the message board as well as DMs. The service also provides data tools so robust, they’re simply incredible! In summary, whether you’re a novice to fixed income or a seasoned professional, this service has you covered! 5 stars ++ rating
tycoonRN
Mar. 17, 2024 11:10 AM
Income investors can't go wrong with this service. Not only are multiple income portfoloios available, but additional tools are available for a wide range of ideas in preferreds, CEF's ETF's and mutual funds. Additionally, communication of ideas and news are released to subscibers frequently with unique analysis in under the radar investments often not covered elswhere, which allows diversification off the beaten path. ADS is easily accesible and responsive to communication. Overall this service gets 5 stars from me.
Learn more