Should I buy Barings BDC stock in 2025? Expert Advice for NZ Investors

What is Barings BDC?

How much is the Barings BDC stock?

The price of Barings BDC stock is falling this week. As of now, the stock is trading at $9.30 USD, down 0.32% over the past 24 hours and showing a weekly change of -2.76%.

Barings BDC holds a market capitalization of $978.91 million, with a 3-month average volume of 555,690 shares. The current P/E ratio is 9.89, supported by a noteworthy dividend yield of 11.15%, and the stock has a relatively low beta of 0.79, indicating lower volatility than the broader market.

For New Zealand investors seeking steady income, Barings BDC offers appealing yields but should be considered in light of its recent performance and moderate market swings.

Our full analysis of the Barings BDC stock

Having thoroughly reviewed Barings BDC, Inc.’s latest financial disclosures alongside its three-year market performance, we applied our multi-factor quantitative models—encompassing up-to-date financial metrics, technical signals, competitive positioning, and sectoral momentum—to evaluate the current investment case for BBDC. Barings BDC is emerging as a potential value play within the listed private credit and asset management arena, especially given its robust dividend profile and active capital management. So, why might Barings BDC stock once again become a strategic entry point into the financial services sector for 2025?

Recent Performance and Market Context

Over the past year, Barings BDC (NYSE: BBDC) has navigated a challenging environment for US-listed Business Development Companies (BDCs), with its share price currently at $9.30 USD (as of 30 May 2025). While the stock has corrected by -6.06% year-on-year and remains slightly down over six months (-9.18%), this pullback reflects wider sector rotation and tighter monetary conditions affecting credit markets globally.

Despite this share price softness, BBDC’s fundamental business has maintained its resilience:

• 2024 and 2025 highlight events include:
• A new $30 million share repurchase authorization (initiated March 2025), which underscores management's confidence in the intrinsic value.
• A special dividend declared in Q2 2025, on top of the stable quarterly payout, signifying excess cash generation and prudent capital allocation.
• Termination of a Barings legacy agreement, unlocking $23 million for new investments, signalling a forward-looking strategy.

Critically, the underlying macro backdrop remains supportive for BDCs. With robust demand for non-bank finance, mid-market lending spreads have held up, and Barings BDC, with its strict lending standards, is well-placed to capitalize on this sustained credit appetite. For New Zealand investors and global allocators seeking USD diversification, the resilience of the US private credit ecosystem is particularly noteworthy.

Technical Analysis

From a technical perspective, BBDC has moved through a consolidation phase. The stock’s current price sits closer to its trailing 52-week support ($7.66) than the upper boundary ($10.85), enabling a risk-managed accumulation thesis.

• Indicators:
• Relative Strength Index (RSI) and oscillators currently signal neutral-to-slightly-positive momentum (oscillator score 58/100), suggesting that near-term selling pressure is abating and that a base formation is probable.
• The moving average structure: BBDC slipped below its 200-day moving average (in March 2025), often interpreted as an opportunity for mean-reversion investors, especially in the context of a fundamentally sound business.
• Support & Resistance:
• Strong near-term support at $7.66 (52-week low) limits downside, with resistance at $10.85 capping the upper range. An eventual breakout above this level could catalyze a new leg higher, especially should fundamental catalysts emerge.
• The technical sentiment aggregate sits at a neutral 54/100, but the slightly positive oscillator reading aligns well with historical inflections for BDCs during market turnarounds.

Collectively, these technicals suggest a low-risk entry zone for medium- to long-term holders, with the potential for upward price normalization as the sector recovers.

Fundamental Analysis

• Revenue & Profitability:
• Q1 2025 revenue reached $64.44 million, just shy of consensus, but still up versus prior periods, with Net Investment Income of $26.4 million ($0.25/share).
• NAV per share has held steady at $11.29—significantly above the current market price—signaling both capital protection and inherent upside.
• Valuation:
• At a trailing P/E of 9.89 and a forward P/E of just 9.03, BBDC trades at a material discount to historical BDC averages and its own asset base.
• The stock’s Price-to-NAV ratio (~0.82x) amplifies the relative value, making BBDC one of the cheapest ways to access a well-managed, yield-oriented private credit portfolio on major US markets.
• The dividend yield (11.15%) comfortably ranks among the highest in the sector, distributing both income and potential price appreciation to investors.
• Structural Strengths:
• Barings' global asset management platform, overseeing more than $442 billion, gives BBDC privileged access to high-quality deal flow, sector insights, and co-investment opportunities unavailable to standalone BDCs.
• Credit quality remains best-in-class: non-accruals at 0.6% underscore disciplined underwriting and portfolio oversight.
• Diversified exposures (manufacturing, services, technology, logistics) offer defensive balance even as specific market segments cyclically weaken.

Given these fundamentals, Barings BDC’s market discount appears increasingly difficult to justify, especially for investors seeking defensive income and capital growth.

Volume and Liquidity

• Trading Volume:
• Average three-month daily trading of ~555,700 shares provides ample liquidity for both retail and institutional investors, with tight bid-ask spreads supporting price efficiency.
• Float:
• A public float of 104.6 million shares ensures dynamic participation, enabling efficient price discovery and scalability for larger allocations.

This robust volume structure not only increases institutional confidence but also underpins BBDC’s ability to quickly respond to changing market dynamics.

Catalysts and Positive Outlook

Looking ahead, several factors may underpin a bullish re-rating for Barings BDC:

• Capital available for deployment:
• Over $420 million in “dry powder” allows rapid investment into high-yielding credit opportunities as the US middle market evolves.
• Share buybacks:
• The $30 million buyback program (active through March 2026) can help close the gap toward NAV, while sending a confidence signal to the market.
• Portfolio realignment:
• Ongoing rotation into higher-yielding credits may improve asset yields as macro conditions stabilise or improve.
• ESG and governance strength:
• Benefit from Barings' global best-practices and disciplined ESG frameworks, increasingly valued by New Zealand’s institutional and private wealth circles.
• Special dividends & stable payouts:
• Management’s willingness to pay special and stable dividends demonstrates sustainable cash-generating ability, especially valuable in an uncertain yield environment.
• Sector tailwinds:
• The continued migration of private credit from banks to non-bank lenders signifies structural long-term tailwinds for BDCs.
• Regulatory clarity and increased demand for mid-market loans are additional positives, making US private credit one of the most sought-after asset classes among sophisticated allocators.

Investment Strategies

Given the above, deployment strategies for Barings BDC can be tailored to multiple timeframes:

• Short-term:
• Potential for a rebound trade, as technical indicators suggest BBDC is stabilising near support and oversold zones—a classic entry setup for mean-reversion and momentum traders.
• Upcoming ex-dividend date (4 June 2025) may create a near-term dividend-capture opportunity for income-focused allocators.
• Medium-term:
• Share buybacks, earnings visibility, and gradual capital deployment into higher-yielding loans should help the stock narrow its discount to NAV over the coming quarters.
• Participation before a material uptick in net investment income or a sector rerating offers compelling asymmetry.
• Long-term:
• BBDC provides a gateway to the sizable US mid-market lending space, with structural income and risk diversification. The global Barings platform’s resources enable strong origination and credit vetting, key to weathering late-cycle volatility.
• Persistent undervaluation vs. NAV courts the potential for price/NAV convergence, especially as BDCs regain institutional favour and capital inflows resume.

A methodical accumulation near technical lows, particularly ahead of catalyst events (e.g., new investments, buyback progress, dividend payments), seems to represent an excellent opportunity for those with an eye on value and yield.

Is it the Right Time to Buy Barings BDC?

In summary, Barings BDC stands out for its credible management, elite credit quality, attractive and stable yield, and strategic posture for future growth—all backed by a demonstrable discount to NAV and robust capital positioning. The stock’s high-yield profile, ample liquidity, imminent catalysts (buybacks, special dividends, new capital deployment), and resilient portfolio provide multiple points of entry for patient investors.

With a measured mix of technical base-building, compelling fundamentals, and multi-layered catalysts—plus a valuation that reflects significant upside potential—Barings BDC warrants serious attention from those seeking USD income and value exposure on the NZ market. As sector dynamics evolve and Barings' global resources are further mobilised, the fundamentals justify renewed interest: in our view, BBDC’s risk-reward balance may be entering a new bullish phase.

For New Zealand investors looking to diversify into US private credit, Barings BDC seems to represent an excellent, well-structured opportunity at a moment when both income and value are in short supply elsewhere.

How to buy Barings BDC stock in New Zealand?

Buying Barings BDC (BBDC) shares online is both straightforward and secure when you use a regulated broker in New Zealand. Investors have two main options: buying the shares directly for long-term ownership (spot or cash buying), or trading price movements through Contracts for Difference (CFDs) with leverage, without direct ownership. Both methods can be accessed online in minutes with identity verification and funding in NZD. Each approach has its own costs, risks and advantages. If you’re ready to compare platforms, you’ll find a broker comparison tool further down this page.

Cash buying

A cash purchase of Barings BDC stock means you become a direct shareholder and can benefit from any dividends the company pays. Most New Zealand brokers allow you to buy US shares like BBDC (listed on the NYSE) using your NZD after currency conversion. Typical fees for Kiwis are a fixed commission per trade, e.g., NZ$5 per buy order, plus a small FX conversion fee.

Example

Suppose the Barings BDC share price is US$9.30 and you have NZ$1,700 (roughly US$1,000 at $1 NZD = $0.59 USD, FX rates can vary). After a NZ$5 brokerage fee and FX costs, you can buy about 105 shares.
✔️ Gain scenario:
If the share price rises by 10% (to $10.23 USD), your shares are now worth about US$1,100.
Result: That’s a NZ$170 gross gain (about US$100), or +10% on your initial NZ$1,700 investment (before FX variations and taxes).

Trading via CFD

CFD trading lets you speculate on Barings BDC share price moves—with no actual share ownership. You’re taking a contract with the broker that mirrors the price action, and you can use leverage. Fees include the bid-ask spread and daily overnight financing if you hold positions longer than a day.

Example

You commit NZ$1,700 as margin and use 5x leverage, giving you exposure to $8,500 worth of BBDC shares (approx. 915 shares at US$9.30 each).
✔️ Gain scenario:
If the share price climbs 8%, your total position rises by 8% × 5 = 40%.
Result: That’s a NZ$680 gain (before fees), on a NZ$1,700 outlay. Note: leveraged trading raises both potential gains and risks, and you do not own the shares.

Final advice

Before you take the plunge, compare brokers’ fees, minimum deposits and available trading tools—the differences can affect your returns, especially for US shares. The best method depends on your goals and risk tolerance: direct investing suits long-term wealth building and collecting dividends, while CFDs appeal to traders seeking short-term price moves with leverage. For a more detailed breakdown of local broker options, see the comparative tool further down the page.

Our 7 tips for buying Barings BDC stock

The latest news about Barings BDC

Barings BDC declared a special dividend and continues its regular dividend policy with a high yield. The company announced a special dividend of $0.05 per share, in addition to its regular quarterly dividend of $0.26 per share, with the ex-dividend date scheduled for 4 June 2025 and the payment set for 11 June 2025. This brings the trailing dividend yield to 11.15%, which remains attractive compared to the sector average and appeals particularly to income-focused investors, including those in New Zealand seeking USD-based, high-yield assets for portfolio diversification or retirement planning. The consistency and growth in dividend payouts offer reassurance regarding near-term cash flow and stability.

Barings BDC authorized a new $30 million share repurchase program, supporting share price and investor confidence. The board approved a fresh share buyback plan through to March 2026, representing a proactive capital management measure that may limit downside pressure on the stock and signal confidence in underlying fundamentals. Such buyback activity has the potential to enhance shareholder value and is often positively received by investors in global markets, including New Zealand portfolios with NYSE exposure or diversified international income strategies, reinforcing Barings BDC’s commitment to disciplined capital allocation.

The company executed a $23 million termination agreement, freeing capital for higher-yield opportunities. In May 2025, Barings BDC finalized an agreement to terminate a prior arrangement with Barings, resulting in a $23 million capital inflow. This strategic move boosts available liquidity, now exceeding $420 million, dedicated to redeploying into attractive mid-market lending opportunities. For New Zealand-based investors and institutional asset allocators, such disciplined reallocation—particularly towards higher-yield, senior secured lending—underscores a robust and adaptive investment approach, benefiting from Barings’ $442+ billion global asset management platform.

Recent financial results showed stable net asset value and superior credit quality despite market headwinds. Barings BDC reported a net asset value per share of $11.29 for Q1 2025, unchanged from the previous quarter, and a sector-leading non-accrual rate of just 0.6%, reflecting prudent risk management even amid a tough market. While earnings per share of $0.25 came in below expectations, revenues slightly exceeded forecasts, affirming the stability of core operations. This resilience is particularly relevant for New Zealand investors who prioritize credit quality and capital preservation within international holdings.

The stock is trading at a significant discount to NAV, with analyst consensus pointing to meaningful upside. With the current stock price at $9.30 and the NAV at $11.29, Barings BDC is trading at a notable discount, while analyst targets average $9.67 (+4%) and some estimates project up to $12.09. Technical signals remain neutral-to-slightly positive, and the company’s solid credit standards and diversified portfolio provide additional downside protection. This situation presents a potential value opportunity for New Zealand investors seeking discounted US-listed, income-generating equities with established governance and global reach, especially as part of cross-border diversification strategies.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.