Fidus Investment Corporation Stock News

The Fed's dovishness has been the key driver for the BDC sell-off. The idea is that lower interest rates should lead to lower dividends (i.e., BDCs cutting their dividend across the board). While it is a process that takes time, the current data show that many BDCs are well-positioned to safeguard their existing dividends.

BDCs have had a rough year so far. Yet, Q3 earnings data points indicate that the tide could be turning. While there are some tangible improvements in BDC business environment, many risks remain open.

FDUS's focus on lower middle market lending, low leverage, and strong equity stakes have driven stability in dividend coverage and NAV yet again. Given that the transaction markets are opening up, FDUS's value proposition has become even more interesting. However, when FDUS announced Q3 results, the market immediately penalized the stock by sending it lower by ~5%.

Fidus Investment remains a Buy due to strong dividend coverage, resilient earnings, and effective portfolio management despite a challenging interest rate environment. FDUS offers a 10.8% dividend yield with a 116% coverage rate, supported by significant spillover income, ensuring payout stability and potential for supplemental distributions. The portfolio continues to grow through new investme...

Fidus Investment ( FDUS ) Q3 2025 Earnings Call November 7, 2025 9:00 AM EST Company Participants Jody Burfening - Investor Relations Contact Edward Ross - Chairman of the Board & CEO Shelby Sherard - CFO, Chief Compliance Officer & Corporate Secretary Conference Call Participants Robert Dodd - Raymond James & Associates, Inc., Research Division Mickey Schleien - Clear Street LLC Presentation O...

There is a theory that says investors have to allocate capital towards the highest risk-adjusted return opportunities (e.g., where the Sharpe ratio is the highest). The return is defined as expected price gain and received income, while the risk is defined as expected share price volatility. Yet, as an income investor, I approach these variables differently. Return is defined as expected income...

Many investors have become fearful of BDCs. The sector wide 22% discount to NAV is proof of that. Yet, very recently I have been adding more to my positions.

BDCs have recently suffered a significant downside volatility. There is indeed a justified reason for system-wide valuation adjustments. Yet, for some BDCs the market has gone too far, while for some the necessary level correction has not yet happened.