Fidus Investment Corporation Stock News

BDC net investment income levels are declining as the Fed lowers rates. Despite lower base rates, I see no reason to rotate out of the BDC sector. In the article I detail how BDCs have outperformed the S&P 500 and high yield credit even in prolonged low-rate environments.

The rebound that began in April on stock markets around the world is leading to a positive double-digit year-end close for Wall Street. This increase has been partially reflected in my portfolio, which focuses on high-dividend securities, showing a gain of more than 6% against the cost basis. In addition, there has been a recent flurry of positive news regarding various special year-end distrib...

Investors are being handed a rare gift with some high-yielding, undervalued opportunities available right now. Two 8-10% yields look far safer and cheaper than the market assumes. I share a contrarian setup that could quietly deliver very strong total returns.

We are entering 2026 with record highs and a 3-year bull-run. Investing in 10%+ yielding securities might not be the smartest idea against this kind of backdrop, when, theoretically, we should be considering a risk-off move. However, there are safe and high-yielding exceptions to be found.

This Is How I'm Harvesting BDC Cash Flows For My Retirement. The double-digit yields, term 'private credit,' cases like First Brands and Tricolor are just some examples that introduce a high degree of skepticism. However, if done right, BDCs can bring a lot of value to the table for safe passive income investors.

BDCs face earnings pressure from lower base rates, but fears of severe dividend cuts are overstated. Quite many BDCs have several levers to pull in order to absorb ~100 bps of base rate cuts without touching their dividends. Yet, I would say that the non-accrual risk is understated.

Fidus Investment is rated hold due to weak dividend coverage and a premium to book value. FDUS's portfolio has shifted toward higher-quality first liens, but rising management fees and interest expenses have compressed NII. Dividend safety is at risk; supplemental dividends are likely unsustainable into 2026 as coverage trends deteriorate.

Fidus Investment is rated a 'Buy' for its high yield, conservative portfolio, and attractive valuation near book value. FDUS has strong NII coverage, low leverage, and minimal credit issues, with non-accruals at just 0.3% of fair value. The portfolio is diversified, first-lien heavy, and benefits from healthy 3.1x interest coverage at the company level.