Three private credit BDCs cut dividends; Blackstone and Hercules show signs of potential cuts.

Three business development companies (BDCs) in private credit—Prospect Capital, Blue Owl Capital, and FS KKR Capital—have cut their dividends this year due to declining net investment income and asset values. Blackstone Secured Lending and Hercules Capital, two major players, show warning signs with shrinking coverage and asset quality concerns, suggesting possible dividend reductions ahead. Investors should watch net investment income, net asset value, and leverage metrics closely, as high yields alone do not guarantee dividend safety in this sector.

Prospect Capital Corporation (PSEC) trades at USD 1.50 on Pluang with a high dividend yield of 28.19%, showing strong investor interest with 94% buy orders. The stock price is near its 52-week low of USD 1.49, reflecting cautious sentiment in the private credit sector. Data is as of Oct 21, 2026 18:12 WIB.