A BDC stock is a publicly traded company that provides financing to small and mid-sized private businesses, offering investors exposure to private credit and equity.

Is BDC a good investment?

BDCs can be a good investment for income-focused investors who already hold a diversified portfolio of stocks and bonds, but investors must be comfortable with higher fees and leverage.

Who are the largest BDCs?

As of August 2026, the largest BDCs by market capitalization were Ares Capital Corporation at $14.27 billion, Blue Owl Capital Corporation at $5.74 billion, and Blackstone Secured Lending Fund at $5.69 billion.

How often do BDCs pay dividends?

Most BDCs pay quarterly dividends, but some, such as Main Street Capital, pay monthly distributions. In addition, some BDCs occasionally issue special or supplemental dividends when earnings exceed their regular payout levels or when they realize profits from the sale of investments.

What are the three types of BDC?

The three main types of BDCs are publicly traded BDCs, non-traded public BDCs, and private BDCs. Publicly traded BDCs are listed on stock exchanges and can be bought or sold throughout the day like stocks. Non-traded public BDCs are registered with regulators but do not trade on exchanges, making them less liquid and often harder to value. Private BDCs are typically limited to institutional or accredited investors and are not available to the general public.

Best BDC Stocks for 2026 and How to Invest

By Tony Dong – Updated Aug 17, 2026 at 3:00 PM EST | Fact-checked by Frank Bass

Key Points

BDCs must distribute at least 90% of income to avoid taxes, enhancing shareholder yields.
Investors should note that BDCs vary in risk and are not simple "set-and-forget" investments.
Selecting a BDC requires checking size, NAV stability, dividend sustainability, and underwriting.

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An infographic defining and explaining the term "business development company (BDC)" — Image source: The Motley Fool.

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Top BDC stocks to consider

The following BDCs were screened for size, relatively stable net asset values (NAV), sustainable dividend coverage, and consistent underwriting discipline. All figures are accurate as of August 2026.

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield
Ares Capital (NASDAQ:ARCC)	$14.1 billion	9.76%
Blackstone Secured Lending Fund (NYSE:BXSL)	$5.7 billion	12.70%
Blue Owl Capital (NYSE:OBDC)	$5.5 billion	12.82%
Main Street Capital (NYSE:MAIN)	$5.2 billion	6.07%
Sixth Street Specialty Lending (NYSE:TSLX)	$1.7 billion	10.29%

Data as of Sep 11, 2026. Showing 5 of 5 total entries.

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1. Ares Capital Corporation

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NASDAQ: ARCC

Ares Capital

Today's Change

(0.30%) $0.06

Current Price

$19.74

Key Data Points

Market Cap

$14B

Day's Range

$19.66 - $19.86

52wk Range

$17.40 - $22.50

Volume

4.3M

Avg Vol

4.6M

Gross Margin

78.21%

Dividend Yield

9.76%

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Ares Capital (ARCC +0.30%) is the largest BDC by market capitalization and has long been considered a bellwether in the space.

Backed by Ares Management (ARES +0.77%), one of the world’s largest alternative asset managers, Ares Capital benefits from a deep credit platform and strong sponsor relationships.

It typically trades at a modest premium to net asset value (NAV), and as of Aug. 11, the premium was 3.2%. It offered an 9.61% dividend yield based on the market price in August 2026.

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2. Blackstone Secured Lending Fund

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NYSE: BXSL

Blackstone Secured Lending Fund

Today's Change

(0.62%) $0.15

Current Price

$24.41

Key Data Points

Market Cap

$5.7B

Day's Range

$24.23 - $24.56

52wk Range

$22.47 - $28.82

Volume

1.2M

Avg Vol

1.6M

Gross Margin

82.21%

Dividend Yield

12.70%

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Blackstone Secured Lending Fund (BXSL +0.62%) is managed by Blackstone Credit, part of alternative asset manager Blackstone (BX +2.47%).

Like Ares, this BDC tends to focus on senior secured loans and benefits from access to large-scale origination networks. It traded at a -4.35% discount to NAV on Aug. 11 and yielded 12.61% based on market price.

Its association with Blackstone’s robust risk controls and capital markets infrastructure is a key reason for its popularity with yield-focused investors.

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3. Blue Owl Capital Corporation

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NYSE: OBDC

Blue Owl Capital

Today's Change

(0.18%) $0.02

Current Price

$11.08

Key Data Points

Market Cap

$5.5B

Day's Range

$11.05 - $11.20

52wk Range

$10.50 - $14.28

Volume

2.1M

Avg Vol

3.7M

Gross Margin

75.01%

Dividend Yield

12.82%

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Blue Owl Capital Corporation (OBDC +0.18%) is the flagship BDC of Blue Owl Capital (OWL +1.25%), one of the fastest-growing names in alternative asset management.

Blue Owl focuses on upper-middle-market direct lending and has quickly become one of the larger players in the BDC space by market capitalization.

Despite its size and institutional backing, it traded at a substantial -18.09% discount to NAV on August 11 due to recent stress in the private lending market, especially when it comes to technology companies. It offered an 10.62% dividend yield based on market price.

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4. Main Street Capital Corporation

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NYSE: MAIN

Main Street Capital

Premium Feature

Moneyball Superscore

68/100

Today's Change

(0.75%) $0.42

Current Price

$56.22

Key Data Points

Market Cap

$5.2B

Day's Range

$55.90 - $56.35

52wk Range

$48.66 - $65.95

Volume

329.5K

Avg Vol

597.2K

Gross Margin

100.00%

Dividend Yield

6.07%

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Main Street Capital (MAIN +0.75%) stands out in the BDC universe as one of the few internally managed BDCs. Its management team is employed directly by the fund rather than a third-party manager.

This structure tends to better align incentives with shareholders. Main Street also pays monthly dividends with irregular special dividends, a rarity among BDCs, and has developed a reputation for conservatism and consistency.

These factors contributed to a significant NAV premium of 74% as of August, one of the highest in the BDC universe. Its dividend yield based on the market price in August was therefore lower than its competitors' at 5.39%.

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5. Sixth Street Specialty Lending

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NYSE: TSLX

Sixth Street Specialty Lending

Today's Change

(0.62%) $0.11

Current Price

$17.89

Key Data Points

Market Cap

$1.7B

Day's Range

$17.70 - $17.91

52wk Range

$16.04 - $24.71

Volume

241.7K

Avg Vol

554.2K

Gross Margin

75.27%

Dividend Yield

10.29%

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Sixth Street Specialty Lending (TSLX +0.62%) is externally managed by Sixth Street Partners, a firm with a strong background in complex and opportunistic credit strategies.

Sixth Street often participates in special situations and distressed debt, setting it apart from more traditional senior lending-focused peers. A typical Sixth Street deal involves bespoke terms and higher spread lending, often with strong covenants and equity kickers.

In August 2026, the stock traded at a 15.52% premium to NAV and offers an 8.96% dividend yield based on market price.

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How to buy BDC stocks

Open your brokerage account: Log in to your brokerage account where you manage your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the BDC: Enter the ticker or company name into the search bar to bring up the BDC’s trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to BDCs.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in BDC stocks

Some of the benefits of investing in BDCs include:

High income potential: BDCs are legally required to distribute at least 90% of taxable income, resulting in above-average yields that can exceed those of real estate investment trusts (REITs), master limited partnerships (MLPs), or even high-yield bonds.
Liquidity: Most large BDCs trade on major stock exchanges with tight bid-ask spreads, unlike private credit or equity funds that lock up capital for years.
Diversification: BDCs invest in private loans and equity stakes that tend to have low correlation with public stocks and bonds, helping reduce overall portfolio volatility.

However, BDC investors need to be aware of the following risks:

NAV versus market price discrepancies: BDCs often trade at discounts or premiums to net asset value (NAV). A premium may signal investor confidence, while a persistent discount can indicate concerns about asset quality.
Interest rate sensitivity: Since BDCs borrow to lend, rapid rate changes can squeeze lending spreads and reduce profitability.
Management alignment: Externally managed BDCs may prioritize asset growth over returns, whereas internally managed BDCs tend to align more closely with shareholders.

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Methodology: How these BDC stocks were chosen

We used market capitalization as the initial screen for this list, focusing on the largest publicly traded BDCs. Market capitalization can serve as a useful proxy for identifying BDCs that have successfully compounded shareholder capital over long periods.

The BDCs that grew into the industry's largest players generally did so by raising and deploying capital effectively, maintaining access to financing, navigating multiple credit cycles, and generating sufficient investor confidence to support their valuations.

However, size alone does not determine BDC quality. Investors should ultimately pay closer attention to factors such as net investment income coverage, non-accrual rates, portfolio credit quality, leverage, and management fees.

Valuation still matters. Even a high-quality BDC can become a poor investment if purchased at an unusually large premium to NAV. After identifying established operators, investors should compare each BDC's current price-to-NAV premium or discount with its own historical range.

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Should you invest in BDC stocks?

BDCs can make sense for income-focused investors who want access to private lending markets through publicly traded stocks. Their high yields are often supported by interest income from loans to middle-market businesses, but investors should look beyond the headline payout before buying.

The best BDCs tend to have strong net investment income coverage, diversified loan portfolios, reasonable leverage, and stable long-term net asset values. Fee structure also matters. Internally managed BDCs often have lower costs and better alignment with shareholders than externally managed peers.

Some investors also use more advanced strategies. Because BDCs frequently trade above or below net asset value, higher-quality names can sometimes be bought at unusually wide discounts and sold as valuations normalize. Others follow activist investors that push underperforming BDCs to narrow discounts through buybacks, fee cuts, or strategic changes.

Taxes are another consideration. Most BDC distributions are taxed as ordinary income rather than qualified dividends, which can create tax drag in taxable accounts. For that reason, many investors prefer holding them in IRAs or other tax-advantaged accounts. On the plus side, BDCs typically issue a standard Form 1099-DIV rather than a Schedule K-1.

Ultimately, BDCs can be a useful part of an income portfolio, but success usually comes from focusing on portfolio quality and dividend sustainability rather than simply chasing the highest yield.

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Best BDC Stocks for 2026 and How to Invest

Key Points