Business Development Companies (BDCs) Investment Center
Business Development Companies, or BDCs, have become one of the more interesting sectors for those who are looking for consistent high income. By law, they are required to distribute at least 90% of their taxable income to shareholders. This is very similar to Real Estate Investment Trusts (REITs), which also carry a 90% income distribution requirement to maintain their special tax status.
Here is where BDCs fit for an income investors:
- Regular Dividend Stocks Like Those in Vanguard dividend growth ETF (VIG)
- Real Estate Investment Trusts (REITs)
- Business Development Companies (BDCs)
- Closed End Funds (Taxable and Municipal Bond Closed End Funds)
- High Yield Bond Funds
- Corporate Bond Funds
- Treasury/Government Bond Funds
See the Business Development Companies for High Income for more details.
Most Popular Business Development Company Stocks
The following are popular BDCs based on their market capitalizations.
| Name | YTD Return | 1Yr AR | 3Yr AR | 5Yr AR | 10Yr AR | 15Yr AR | 20Yr AR | Inception |
|---|---|---|---|---|---|---|---|---|
| ARCC (Ares Capital Corporation) | 7.54% | 25.73% | 13.37% | 15.01% | 13.54% | 14.23% | 12.36% | NA |
| OBDC (Blue Owl Capital Corporation) | -0.53% | 12.40% | 13.08% | 8.94% | NA | NA | NA | NA |
| FSK (FS KKR Capital Corp.) | 5.80% | 28.50% | 17.53% | 16.14% | -8.64% | NA | NA | NA |
| BXSL (Blackstone Secured Lending Fund) | 2.10% | 26.65% | 15.59% | NA | NA | NA | NA | NA |
| GBDC (Golub Capital BDC, Inc.) | 3.89% | 14.18% | 11.42% | 7.69% | 9.02% | NA | NA | NA |
| PSEC (Prospect Capital Corporation) | 1.39% | -20.09% | -9.83% | 3.38% | 5.09% | 5.13% | 7.00% | NA |
| MAIN (Main Street Capital Corporation) | 5.18% | 46.35% | 22.33% | 15.62% | 16.42% | 19.16% | NA | NA |
| HTGC (Hercules Capital, Inc.) | 4.58% | 29.54% | 20.17% | 19.87% | 14.30% | 15.07% | NA | NA |
| MSDL (Morgan Stanley Direct Lending Fund) | 2.03% | 14.93% | NA | NA | NA | NA | NA | NA |
| TSLX (Sixth Street Specialty Lending, Inc.) | 3.80% | 13.24% | 9.17% | 13.50% | 15.18% | NA | NA | NA |
| GSBD (Goldman Sachs BDC, Inc.) | 6.28% | -4.71% | -2.33% | 1.51% | NA | NA | NA | NA |
| OCSL (Oaktree Specialty Lending Corporation) | 4.12% | -15.66% | 0.83% | 10.04% | 6.35% | 5.74% | NA | NA |
| MFIC (MidCap Financial Investment Corporation) | 3.04% | 10.82% | 15.43% | 8.14% | 17.81% | 21.21% | 24.75% | NA |
| NMFC (New Mountain Finance Corporation) | 2.58% | -5.81% | 4.77% | 5.83% | 7.79% | NA | NA | NA |
| CGBD (Carlyle Secured Lending, Inc.) | 3.46% | 26.53% | 17.53% | 15.76% | NA | NA | NA | NA |
| BCSF (Bain Capital Specialty Finance, Inc.) | 2.97% | 29.24% | 16.34% | 9.98% | NA | NA | NA | NA |
| PFLT (PennantPark Floating Rate Capital Ltd.) | 3.80% | 9.93% | 6.97% | 9.88% | 8.31% | NA | NA | NA |
| SLRC (SLR Investment Corp.) | 3.71% | 21.31% | 8.20% | 6.34% | 8.57% | NA | NA | NA |
| CSWC (Capital Southwest Corporation) | 3.16% | -1.25% | 8.86% | 13.60% | 2.72% | 8.79% | 7.22% | NA |
| NCDL (Nuveen Churchill Direct Lending Corp.) | 2.68% | 9.30% | NA | NA | NA | NA | NA | NA |
| TRIN (Trinity Capital Inc.) | 3.66% | 22.50% | 10.94% | NA | NA | NA | NA | NA |
| TCPC (BlackRock TCP Capital Corp.) | 6.77% | -7.93% | -0.33% | 2.95% | 5.28% | NA | NA | NA |
| CION (CION Investment Corporation) | 0.88% | 15.52% | 12.56% | NA | NA | NA | NA | NA |
| CCAP (Crescent Capital BDC, Inc.) | 1.14% | 31.11% | 15.33% | 15.87% | NA | NA | NA | NA |
| FDUS (Fidus Investment Corporation) | 7.28% | 29.72% | 23.19% | 22.36% | 16.89% | NA | NA | NA |
| PSBD (Palmer Square Capital BDC Inc.) | 3.88% | 8.75% | NA | NA | NA | NA | NA | NA |
| RWAY (Runway Growth Finance Corp.) | 5.29% | 1.87% | 10.28% | NA | NA | NA | NA | NA |
| GAIN (Gladstone Investment Corporation) | 1.36% | 1.99% | 8.38% | 11.45% | 17.74% | 18.40% | NA | NA |
| PNNT (PennantPark Investment Corporation) | -0.01% | 10.90% | 13.76% | 13.91% | 10.59% | 10.05% | NA | NA |
| GLAD (Gladstone Capital Corporation) | 7.09% | 54.38% | 23.50% | 18.73% | 17.54% | 15.04% | 7.13% | NA |
| SAR (Saratoga Investment Corp.) | 3.85% | 20.57% | 9.03% | 7.56% | 15.49% | 12.83% | NA | NA |
| SCM (Stellus Capital Investment Corporation) | 8.65% | 25.01% | 16.09% | 12.30% | 13.86% | NA | NA | NA |
| TPVG (TriplePoint Venture Growth BDC Corp.) | 8.94% | -17.41% | -8.48% | 2.45% | 7.13% | NA | NA | NA |
| HRZN (Horizon Technology Finance Corporation) | 4.58% | -20.79% | -3.85% | 3.98% | 7.10% | NA | NA | NA |
| LIEN (Chicago Atlantic BDC, Inc.) | -8.29% | 59.53% | NA | NA | NA | NA | NA | NA |
| WHF (WhiteHorse Finance, Inc.) | 7.44% | -4.05% | 0.13% | 6.86% | 11.99% | NA | NA | NA |
| MRCC (Monroe Capital Corporation) | -0.35% | 31.69% | 4.58% | 6.74% | 5.91% | NA | NA | NA |
| PTMN (Portman Ridge Finance Corporation) | 2.14% | 2.76% | 0.45% | 7.38% | 4.74% | 11.23% | NA | NA |
| OFS (OFS Capital Corporation) | 0.74% | -17.84% | 6.37% | 5.91% | 9.22% | NA | NA | NA |
| SSSS (SuRo Capital Corp.) | -9.52% | 40.00% | -23.17% | 8.48% | 5.31% | NA | NA | NA |
| OXSQ (Oxford Square Capital Corp.) | 9.63% | -0.60% | 0.84% | -1.02% | NA | NA | NA | NA |
| GECC (Great Elm Capital Corp.) | -2.27% | 13.80% | -1.37% | -15.81% | NA | NA | NA | NA |
| ICMB (Investcorp Credit Management BDC, Inc.) | 2.31% | 4.09% | -1.06% | -1.56% | 1.41% | NA | NA | NA |
Data as of 01/28/2025, AR inception is 01/28/2025
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