3 High-Yielding BDCs For 2025

Apr. 28, 2025 7:00 AM ETARCC, BXSL, MSDL29 Comments
(14min)

Summary

  • Despite expected volatility and potential recession, Ares Capital, Blackstone Secured Lending, and Morgan Stanley Direct Lending are likely to maintain their current dividends in 2025.
  • Ares Capital's conservative fiscal strategy, solid dividend coverage, and investment-grade credit ratings position it well for the year ahead.
  • Blackstone Secured Lending's defensively-positioned portfolio and robust liquidity make it a strong contender, despite lower interest rates potentially impacting the sector.
  • Morgan Stanley Direct Lending's discount to NAV, strong liquidity, and share buybacks provide confidence in its dividend stability, despite its short public track record.
  • Looking for a helping hand in the market? Members of iREIT®+HOYA Capital get exclusive ideas and guidance to navigate any climate. Learn More »
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Torsten Asmus

This article was co-produced by The Dividend Collectuh.

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Brad Thomas has over 30 years of real estate investing experience and has acquired, developed, or brokered over $1B in commercial real estate transactions. He has been featured in Barron's, Bloomberg, Fox Business, and many other media outlets. He's the author of four books, including the latest, REITs For Dummies.

Brad, along with HOYA Capital, lead the investing group iREIT®+HOYA Capital. The service covers REITs, BDCs, MLPs, Preferreds, and other income-oriented alternatives. The team of analysts has a combined 100+ years of experience and includes a former hedge fund manager, due diligence officer, portfolio manager, PhD, military veteran, and advisor to a former U.S. President.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of ARCC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Related Stocks

SymbolLast Price% Chg
ARCC--
Ares Capital
BXSL--
Blackstone Secured Lending Fund.
MSDL--
Morgan Stanley Direct Lending Fund

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