The ABCs Of BDC Risk

There are multiple risks for your BDC investments now and three that specifically create risk for certain BDCs. Business development companies offer high yields but carry significant, often misunderstood risks, especially in falling interest rate environments. Volatile interest rates can damage BDC profitability and distributable income, causing dividend cuts and share price declines.

Seeking Alpha • Feb 23, 2026

These 2 Finance Stocks Could Beat Earnings: Why They Should Be on Your Radar

Investors looking for ways to find stocks that are set to beat quarterly earnings estimates should check out the Zacks Earnings ESP.

Zacks Investment Research • Feb 20, 2026

10%+ Dividends And Stress-Free Retirement: My Top 2 Picks

Ultra-high-yield strategies (e.g., CLO equity, aggressive call option funds) risk capital destruction and income instability. Yet, conservative blue-chip income portfolios often yield too little (3-4%) to meet robust income goals or outpace inflation. My approach is to strike a balance between these two worlds.

Seeking Alpha • Feb 19, 2026

Capital Southwest: I Went To Dallas For This Safe 11% Dividend Yield Paid Monthly

Capital Southwest offers a secure, double-digit dividend yield, underpinned by positive momentum with originations and a 103% coverage of the base dividend. CSWC's dividend safety rests on robust origination momentum, low non-accrual rates, and a premium to NAV, supporting ongoing portfolio expansion. With 95% floating-rate loans, CSWC faces modest NII sensitivity to Fed cuts, but minimal software exposure shields it from AI-driven credit fears.

Seeking Alpha • Feb 15, 2026

Beyond 10% Yield: Using The 'Circle Of Virtue' To Build An Income Fortress

Regulated Investment Companies or RICs (BDCs, REITs, and CEFs), avoid corporate-level taxes by distributing at least 90% of taxable income as dividends. Trading above NAV (Net Asset Value) allows companies to issue new shares and invest the proceeds at a profit, growing the "pie" for everyone. Credit Quality Resilience: Despite a soft economy, top-tier BDCs are maintaining non-accrual rates well below 2%, outperforming traditional banks.

Seeking Alpha • Feb 15, 2026

If I Had To Retire With 2 BDCs, These Would Be My Picks

The BDC sector faces mounting risks: falling base rates, spread compression, and rising credit issues, driving a ~23% index drawdown in 12 months. Dividend cuts have accelerated, with 12 out of ~55 BDCs—including GBDC and GLAD—reducing payouts in the past year. Sector-wide average base dividend coverage sits at 100%, with fully leveraged balance sheets and no margin of safety.

Seeking Alpha • Feb 15, 2026

I Wouldn't Want To Retire Without The 3 Most Undervalued Income Machines

Three income powerhouses are trading at very compelling valuations right now. Each offers attractive income with substantial upside potential. Here's why I'm overweighting them while the market is still giving them away at a discount.

Seeking Alpha • Feb 13, 2026

2 BDCs To Dump Before They Cut Their Dividend

The market has become worried about BDCs mostly from the credit risk perspective. However, some of the recent earnings reports and BDC examples show that dividend cut risk has not disappeared. In this article, I share two BDC examples that are very likely to slash their dividends soon.

Seeking Alpha • Feb 12, 2026

Why More BDCs Are Likely To Cut Their Dividends

Business Development Companies (BDCs) face headwinds from declining interest rates, which pressure yields and dividend coverage across the sector. Lower rates reduce BDC income as loan yields fall, increasing the risk of dividend cuts—recently seen with GBDC and CION. I favor avoiding most BDCs in 2026, except for high-quality names like CSWC and ARCC, which offer relative resilience due to premium valuations and scale.

Seeking Alpha • Feb 10, 2026

High-Yield Wreck Your Retirement? Here Is Your Path To Recovery

The yield that looks safe today may be your biggest long-term risk. Dividend cuts can be more damaging than market pullbacks. A better income strategy most retirees overlook.

Seeking Alpha • Feb 9, 2026