Article Of The Week
"If You're A BDC Investor, 2026 Could Bring More Pain."
As you know by my name, I love dividends. And in addition to sharing on here, I write regularly in the investment platform- Seeking Alpha.
My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.
I want to help you take control of your life, have F.I.R.E.
And the platform allows writers to share one article once a week free of charge. So, I like to share them with all my current & future subscribers. (see below).
Although we are only 3 months in 2026, the BDC sector (BIZD) has underperformed. Many have been forced to reduce their dividends due to lower interest rates. As a result, many have underperformed as this has spilled over into the entire sector.
With economic uncertainty remaining high and rate cuts suspected, I turned cautious on the sector in early 2025, warning investors of suspected dividend cuts and underperformance.
And going forward, I suspect the sector may continue to underperform despite many BDCs trading at attractive discounts and sporting double-digit yields.
But if you’re an income-focused investor, there are two picks that I suspect may be able to navigate the dividend-cutting spree. Check out this week’s article of the week to see what two BDCs I like.
Let me know what you think of the article in the comments!
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For educational purposes only. Not financial advice. I am not a licensed professional. Please do your own due diligence.
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