Why BDC Dividend Cuts Matter Less Than You Think

System-wide BDC dividend cuts are highly likely as base dividend coverage averages 99% and growth is constrained. As a result, many BDC investors have decided to sit on the sidelines until the expected dividend cuts materialize. The idea is that a cut will lead to a negative share price reaction and thus provide a better opportunity to buy at a bargain price.

Seeking Alpha • 14 hours ago

Morgan Stanley Direct Lending - Be Patient

Morgan Stanley Direct Lending (MSDL) is rated Hold, due to sector headwinds, declining portfolio quality, and dividend coverage concerns. MSDL's non-accrual loans rose to 1.2% at cost, and portfolio yield declined to 9.7%, as SOFR and spreads compressed. The $0.50 dividend is barely covered by net investment income; a dividend cut appears likely and is partially priced in.

Seeking Alpha • Feb 16, 2026

MSDL: Time To Buy The Dip And Lock In 13% Yield

The market has punished MSDL very hard. Currently, MSDL trades at ~26% discount to NAV, which is the lowest level it has ever had and also way below the sector average. The key driver behind the depressed valuation is the increased credit risk.

Seeking Alpha • Feb 10, 2026

Buy The Dip: 11-13% Yields Getting Way Too Cheap

The market is pricing in a disaster that the data still refuses to confirm. Deep discounts and double-digit yields are colliding in an overlooked corner of the market. If sentiment flips, the upside could surprise even seasoned income investors.

Seeking Alpha • Feb 6, 2026

Morgan Stanley Direct Lending Fund Announces Fourth Quarter and Full Year 2025 Earnings Release and Conference Call

NEW YORK--(BUSINESS WIRE)--Morgan Stanley Direct Lending Fund (NYSE: MSDL) ("MSDL”), a business development company externally managed by MS Capital Partners Adviser Inc., today announced it will release its financial results for the fourth quarter and fiscal year ended December 31, 2025, on Thursday, February 26, 2026, after the market closes. MSDL will host a conference call at 10:00 am ET on Friday, February 27, 2026, to review its financial results and conduct a question-and-answer session.

Business Wire • Jan 26, 2026

Two 12%+ Dividends Going From Bargains To Buys

Investors are currently adopting a more conservative stance, favoring high-quality value and durable income. However, this rotation coupled with lower interest rates echoes a bit 2022's system-wide yield compression (when high-quality income was overcrowded due to a desparate search-for-yield activity). So, finding double digit dividends that are backed by strong fundamentals has become more difficult.

Seeking Alpha • Jan 23, 2026

My Ultimate Buy-The-Dip Picks For 10-12% Income

These two income plays just fell hard, but the fundamentals didn't. They have double-digit yields, deep discounts, and balance sheet firepower. It's the kind of setup long-term income investors often wait years for.

Seeking Alpha • Jan 14, 2026

Morgan Stanley Direct Lending Is In Trouble (Rating Downgrade)

Morgan Stanley Direct Lending Fund's weighted average yield fell from 11% in Q3 2024 to 9.9% in Q3 2025, pressuring NII, but that's not my largest concern. MSDL is in trouble because of increasing struggles of its portfolio companies. Is it time to stop buying MSDL? I think so - I've stopped reinvesting as MSDL's portfolio performs in the opposite direction it should.

Seeking Alpha • Jan 9, 2026

The Biggest Bargain And The Most Expensive Lottery Ticket I See In The BDC Space

BDC sector valuations remain depressed, with P/NAV metrics under 1x due to falling rates and credit risk concerns. Dividend sustainability is diverging across BDCs; not all will cut, but the ones with sustainable dividends do not automatically have strong total return prospects. I highlight one BDC as a compelling bargain with strong total return prospects and contrast it with another viewed as highly overpriced.

Seeking Alpha • Jan 7, 2026

The Chart That Answers Your Question About BDC Dividend Cuts

Investors have started to question how sustainable BDC dividends are. A lot of this skepticism is logical and justified by valid reasons. My calculus shows that on average BDCs could cut their dividends by 20% in order to avoid NAV erosion.

Seeking Alpha • Jan 5, 2026