Top 10 Dividend and Distribution-Paying BDCs
The best BDCs for 2025 providing strong dividends and distributions
Quick Definition: Business Development Companies (BDCs) are investment firms that provide debt and equity financing to small and mid-sized businesses, distributing at least 90% of their taxable income as dividends to shareholders.
The top 10 dividend and distribution-paying BDCs for 2025 are selected for their high yields, financial stability, and quality investment portfolios. These BDCs provide income-focused investors with attractive cash flow, exposure to private debt markets, and potential for capital appreciation, though they carry higher risks due to leverage and economic sensitivity.
| # | Ticker | Name | Yield (%) |
|---|---|---|---|
| 1 | PSEC | Prospect Capital Corporation | 20.22% |
| 2 | HRZN | Horizon Technology Finance Corporation | 19.73% |
| 3 | BDCX | ETRACS Quarterly Pay 1.5x Leveraged | 17.85% |
| 4 | TRIN | Trinity Capital | 13.67% |
| 5 | FDUS | Fidus Investment Corporation | 11.54% |
| 6 | OBDC | Blue Owl Capital Corporation | 10.98% |
| 7 | BXSL | Blackstone Secured Lending Fund | 10.88% |
| 8 | CSWC | Capital Southwest Corporation | 10.59% |
| 9 | HTGC | Hercules Capital | 9.91% |
| 10 | ARCC | Ares Capital Corporation | 9.13% |
Yields are subject to change and not guaranteed.