10 Excessive Yield Month-to-month Dividend BDCs

Printed on Could fifth, 2026 by Bob Ciura

Enterprise Improvement Corporations, in any other case generally known as BDCs, are extremely common amongst revenue traders.

That’s as a result of BDCs broadly have excessive dividend yields of 5% or increased.

This makes BDCs very interesting for revenue traders akin to retirees. With this in thoughts, we’ve created a listing of over 40 BDCs.

You’ll be able to obtain your free copy of our BDC checklist, together with related monetary metrics akin to dividend yields and payout ratios, by clicking on the hyperlink beneath:

 

On the identical time, month-to-month dividend shares are extremely interesting for revenue traders.

That’s as a result of these explicit shares pay dividends each month, as a substitute of as soon as per quarter or semi-annually like most dividend-paying shares.

On this evaluation, now we have mixed these qualities to checklist 10 high-yield BDCs with month-to-month dividends.

Desk Of Contents

The ten BDCs beneath are listed by present dividend yield, from lowest to highest:

Excessive Dividend Month-to-month Paying BDC #10: Principal Road Capital (MAIN)

Principal Road Capital Company is a Enterprise Improvement Firm (BDC) that gives long-term debt and fairness capital to decrease center market firms and debt capital to center market firms.

Principal Road defines decrease center market firms as usually having annual revenues between $10 million and $150 million.

The corporate’s investments sometimes assist administration buyouts, recapitalizations, progress financings, refinancing, and acquisitions.

On February twenty sixth, 2026, Principal Road Capital reported fourth quarter 2025 outcomes. Web funding revenue of $92.1 million rose 6% in comparison with $86.7 million in This fall 2024.

The company generated internet funding revenue per share of $1.03, up 5% year-over-year from $0.98 per share. Distributable internet funding revenue per share totaled $1.09, 5% increased in comparison with This fall 2024.

Principal Road’s internet asset worth per share elevated 5.3% since December thirty first, 2024, from $31.65 to $33.33.

The company declared month-to-month dividends of $0.26 to be paid within the second quarter of 2026, that are 4% increased than these declared a yr in the past, in addition to a supplemental $0.30 dividend to be paid in March.

Click on right here to obtain our most up-to-date Positive Evaluation report on MAIN (preview of web page 1 of three proven beneath):

Excessive Dividend Month-to-month Paying BDC #9: Gladstone Funding Corp. (GAIN)

Gladstone Funding is a enterprise growth firm (BDC) that focuses on US-based small- and medium-sized firms.

Industries which Gladstone Funding targets embody aerospace & protection, oil & gasoline, equipment, electronics, and media & communications. The corporate was based in 2005 and is headquartered in McLean, VA.

Gladstone Funding reported its third quarter (Q3 2025 ended December 31) earnings outcomes on February 3. The corporate generated whole funding revenue of $25.1 million throughout the quarter, a rise of 17% in comparison with the earlier yr’s quarter.

This nonetheless was a barely weaker efficiency in comparison with what the analyst neighborhood had forecast. Gladstone Funding’s earnings-per-share totaled $0.21 throughout the fiscal third quarter, which was down from the earlier quarter.

Gladstone Funding‘s internet asset worth per share totaled $14.95 on a per-share foundation on the finish of the quarter, which was up properly in comparison with the NAV-per-share that the corporate reported on the finish of the earlier quarter.

Click on right here to obtain our most up-to-date Positive Evaluation report on GAIN (preview of web page 1 of three proven beneath):

Excessive Dividend Month-to-month Paying BDC #8: Gladstone Capital (GLAD)

Gladstone Capital is a enterprise growth firm, or BDC, that primarily invests in small and medium companies.

These investments are made through a wide range of fairness (10% of portfolio) and debt devices (90% of portfolio), usually with very excessive yields.

Mortgage measurement is usually within the $7 million to $30 million vary and has phrases as much as seven years.

Gladstone posted first quarter earnings on February fifth, 2026. Web funding revenue got here to 50 cents per share. Complete funding revenue, which is akin to income, was up 2.4% year-over-year, pushed largely by different revenue.

Curiosity revenue was $23.9 million. Complete bills have been $800,000 increased than the year-ago interval, with increased curiosity bills and administration charges.

NAV declined from $21.34 per share to $21.13. Complete belongings have been $923 million, or $903 million at truthful worth. Gross leverage was 93.3% of internet belongings.

For 2026, we count on $1.95 in NII-per-share for GLAD.

Click on right here to obtain our most up-to-date Positive Evaluation report on GLAD (preview of web page 1 of three proven beneath):

Excessive Dividend Month-to-month Paying BDC #7: Capital Southwest Corp. (CSWC)

Capital Southwest Company is an internally managed funding firm that has elected to be regulated as a BDC.

The corporate makes a speciality of offering custom-made debt and fairness financing to decrease center market (LMM) firms and debt capital to upper-middle market (UMM) firms situated primarily in the US.

Capital Southwest generates round $82 million in annual income.

On February 2nd, 2026, Capital Southwest reported its fiscal Q3-2026 outcomes. Complete funding revenue rose to $61.4 million from $56.9 million, pushed by portfolio progress and steady money yields, partially offset by decrease payment revenue.

PIK curiosity remained properly managed, supporting earnings sturdiness. The weighted common debt yield edged right down to 11.3% from 11.5% as a result of portfolio combine and repayments.

Pre-tax internet funding revenue was $34.6 million, or $0.60 per share, versus $34.0 million, or $0.61, reflecting increased common shares excellent.

Undistributed taxable revenue declined to $1.02 per share after supplemental dividends, whereas common dividends remained totally coated and cumulative dividend protection continues to exceed 100%.

Click on right here to obtain our most up-to-date Positive Evaluation report on CSWC (preview of web page 1 of three proven beneath):

Excessive Dividend Month-to-month Paying BDC #6: Saratoga Funding Corp. (SAR)

Saratoga Funding Corp is a enterprise growth firm (BDC) that gives custom-made debt and fairness financing to U.S. middle-market firms, specializing in revenue technology by means of predominantly senior credit score devices.

As of November thirtieth, 2025, the truthful worth of its funding portfolio was $1,016.0 million, excluding $169.6 million in money and money equivalents.

The portfolio composition by truthful worth was $852.5 million in first-lien time period loans (83.9%), $8.1 million in second-lien time period loans (0.80%), $16.3 million in unsecured loans (1.60%), $54.9 million in structured finance securities (5.40%), and $84.4 million in frequent fairness (8.3%).

SAR’s holdings span 39 distinct trade classifications, with notable exposures in Healthcare Providers (largest single sector) at 9.7% of portfolio truthful worth, Structured Finance Securities at 7.3%, and Client Providers at 6.0%.

On January seventh, 2026, Saratoga Funding Corp. reported its fiscal Q3 2026 outcomes for the interval ending November thirtieth, 2025. Complete funding revenue declined 11.8% yr over yr to $31.6 million, reflecting decrease base charges and a smaller common portfolio following elevated repayments over the previous yr.

Web asset worth elevated to $413.2 million, or $25.59 per share, representing a 0.7% improve quarter over quarter. Web funding revenue was $9.8 million, or $0.61 per share, representing a 32% decline from $0.90 per share within the prior yr interval.

The decline was as a result of decrease base rates of interest and a smaller common incomes asset base following elevated repayments over the previous 12 months.

Click on right here to obtain our most up-to-date Positive Evaluation report on SAR (preview of web page 1 of three proven beneath):

Excessive Dividend Month-to-month Paying BDC #5: PennantPark Floating Charge Capital (PFLT)

PennantPark Floating Charge Capital Ltd. is a enterprise growth firm that seeks to make secondary direct, debt, fairness, and mortgage investments.

The fund additionally goals to take a position by means of floating fee loans in non-public or thinly traded or small market-cap, public center market firms, fairness securities, most well-liked inventory, frequent inventory, warrants or choices obtained in reference to debt investments or by means of direct investments.

On February 10, 2026, PennantPark Floating Charge Capital Ltd. reported fiscal first-quarter 2026 outcomes for the interval ended December 31, 2025.

Core internet funding revenue of $0.27 per share, equal to GAAP NII, indicated regular earnings and supported the BDC’s month-to-month dividend technique, though it additionally steered restricted upside versus the present payout.

The corporate maintained strong deployment exercise, investing $301 million at a weighted common yield of 10% throughout each new and current portfolio firms, which is a optimistic for revenue technology however can elevate danger if credit score circumstances weaken.

The portfolio remained properly diversified with 160 firms throughout 50 industries and a weighted common yield on debt investments of 9.9%, pointing to steady credit score circumstances and enticing alternatives, although the breadth of publicity additionally requires vigilant credit score monitoring.

Leverage of 1.57 instances at quarter-end was on the upper aspect, however post-quarter asset gross sales of $27 million to PSSL I and $133 million to PSSL II introduced leverage right down to 1.5 instances, comfortably throughout the 1.4 to 1.6 instances goal vary and
supporting sustainable dividend protection.

Click on right here to obtain our most up-to-date Positive Evaluation report on PFLT (preview of web page 1 of three proven beneath):

Excessive Dividend Month-to-month Paying BDC #4: Stellus Capital (SCM)

Stellus Capital Administration offers capital options to firms with $5 million to $50 million of EBITDA and does so with a wide range of devices, nearly all of that are debt.

Stellus offers first lien, second lien, mezzanine, convertible debt, and fairness investments to a various group of consumers, usually at excessive yields, within the US and Canada.

Stellus posted fourth quarter and full-year earnings on March twelfth, 2026. The corporate posted internet funding revenue of 29 cents per share for the quarter, whereas funding revenue was $25.2 million. That was off barely from $25.6 million within the year-ago interval.

The portfolio ended the quarter at $1.01 billion throughout 115 firms, with $34 million invested in 4 new portfolio firms, $18 million in different investments, $38 million in repayments, a $7 million achieve in fairness realizations, and a $5.5 million realized achieve.

On the finish of the quarter, 99% of loans have been secured and 92% have been floating fee. The typical mortgage per firm was $8.8 million, with its largest place at $19.2 million.

Asset high quality was okay, with 81% of the portfolio rated 1 or 2, with 5 portfolio firms on nonaccrual. That was 7.5% of whole value and 4.1% of truthful worth, each of which have been barely worse than the prior quarter.

Stellus lower the dividend to $1.36 per share yearly from $1.60.

Click on right here to obtain our most up-to-date Positive Evaluation report on SCM (preview of web page 1 of three proven beneath):

Excessive Dividend Month-to-month Paying BDC #3: Horizon Expertise Finance (HRZN)

Horizon Expertise Finance Corp. is a BDC that gives enterprise capital to small and medium–sized firms within the expertise, life sciences, and healthcare–IT sectors.

The corporate has generated enticing danger–adjusted returns by means of instantly originated senior secured loans and extra capital appreciation by means of warrants.

Horizon Expertise Finance Corp. is a BDC that gives enterprise capital to small and medium–sized firms within the expertise, life sciences, and healthcare–IT sectors.

On March third, 2026, Horizon introduced its This fall and full-year 2025 outcomes. For the quarter, whole funding revenue declined 12.2% year-over-year to $20.7 million, primarily as a result of decrease curiosity revenue on debt investments from a smaller debt funding portfolio.

The corporate’s dollar-weighted annualized yield on common debt investments in This fall 2025 and This fall 2024 was 14.3% and 14.9%, respectively.

Web funding revenue per share (NII) fell year-over-year to $0.18 from $0.27. Web asset worth (NAV) per share stood at $6.98, down from $8.43 within the prior yr.

Horizon’s undistributed spillover revenue was $0.65 per share at year-end, nonetheless offering some revenue assist for future distributions.

Click on right here to obtain our most up-to-date Positive Evaluation report on HRZN (preview of web page 1 of three proven beneath):

Excessive Dividend Month-to-month Paying BDC #2: PennantPark Funding Corp. (PNNT)

PennantPark Funding Company is concentrated on offering non-public credit score to U.S. core middle-market firms, sometimes with $10–$50 million of EBITDA, by means of primarily first-lien, senior secured loans.

As of December thirty first, 2025, PNNT had a $1.22 billion funding portfolio throughout 158 firms, with a weighted common yield on interest-bearing debt investments of 10.9%.

The portfolio consisted of 40% first-lien secured debt, 2% second-lien secured debt, 17% subordinated debt, 24% most well-liked and customary fairness, and 17% U.S. Authorities Securities.

The interest-bearing debt portfolio was 89% variable fee, and 4 portfolio firms have been on non-accrual, representing 1.1% of the portfolio at truthful worth.

On February ninth, 2026, PennantPark Funding reported its fiscal Q1 outcomes for the quarter ended December thirty first, 2025. For the quarter, whole funding revenue declined yr over yr to $27.3 million from $34.2 million, pushed by a smaller portfolio and decrease yields.

Web funding revenue fell to $7.0 million, or $0.11 per share, from $13.0 million, or $0.20 per share, a forty five% decline in per-share earnings.

PennantPark reported internet funding good points of $9.0 million, or $0.14 per share, down from $16.1 million, or $0.25 per share, a yr in the past, as realized good points have been greater than offset by unrealized depreciation.

Web asset worth fell 1.5% quarter over quarter to $7.00 per share from $7.11, reflecting depreciation and distributions.

Click on right here to obtain our most up-to-date Positive Evaluation report on PNNT (preview of web page 1 of three proven beneath):

Excessive Dividend Month-to-month Paying BDC #1: Prospect Capital (PSEC)

Prospect Capital Company is a Enterprise Improvement Firm, or BDC, that gives non-public debt and personal fairness to center–market firms within the U.S.

The corporate focuses on direct lending to proprietor–operated firms, in addition to sponsor–backed transactions. Prospect invests primarily in first and second lien senior loans and mezzanine debt, with occasional fairness investments. 

Prospect posted second quarter earnings on February ninth, 2026, and outcomes have been considerably weak. Web funding revenue was 19 cents per share.

Complete funding revenue, which is PSEC’s model of income, was $176 million. That was off from $185.5 million within the year-ago interval.

Complete funding revenue was $149 million, down from $168.8 million a yr earlier. That was higher than the $140.5 million that was anticipated.

Web funding revenue was 19 cents, up from 17 cents in Q1 however down from 20 cents within the year-ago interval. Complete payment-in-kind curiosity revenue was $15.1 million, down from $20.2 million within the year-ago interval.

Complete originations have been $80 million, down from $92 million within the earlier quarter. Complete repayments and gross sales have been $79 million, down sharply from $235 million a yr in the past.

Altogether, internet originations have been $1.2 million versus -$143 million within the earlier quarter.

For 2026, we see 47 cents in NII-per-share for this yr after first half earnings.

Click on right here to obtain our most up-to-date Positive Evaluation report on PSEC (preview of web page 1 of three proven beneath):

Extra Sources

At Positive Dividend, we regularly advocate for investing in firms with a excessive chance of accelerating their dividends each yr.

If that technique appeals to you, it could be helpful to flick through the next databases of dividend progress shares: