To find alpha in the BDC sector (BDCS), look for those companies with higher-than-average...

|By:, SA News Editor

To find alpha in the BDC sector (BDCS), look for those companies with higher-than-average dividend growth, says BB&T's Vernon Plack. He still likes previous favorite Ares Capital (ARCC -0.8%), but his top 3 picks now are Fidus (FDUS -0.6%), Hercules Technology (HTGC +0.3%), and Solar Capital (SLRC -0.4%). Fidus - which invests at the low end of the middle-market space - has the potential for a 50% higher dividend, a 12.5% yield based on today's price.