Nuveen Churchill Direct Lending

NCDL

Market cap $610M

Stocks are sky-high, but us contrarians are looking for dividend deals. And we found them in one forgotten corner of the Wall Street world.

Nuveen Churchill Direct Lending Corp. trades at an 11.7% yield and a 26% discount, with a focus on first-lien, middle-market borrowers. NCDL's net investment income fell 4% quarter-over-quarter but less than 2% after accounting for a one-time debt financing cost. Portfolio quality remains strong: non-accruals are less than half the sector median, diversification is high, and realized losses are low relative to peers.

We take a look at the action in business development companies through the fourth week of May and highlight some of the key themes we are watching. BDC sector saw a -2.5% average return this week, with sentiment and valuations near 1-year lows despite stable credit metrics. Median NII declined nearly 6% in Q1, but the downward trend is expected to moderate as spreads widen and deal activity recovers.

There is a principle I have followed for 30 years in this business. When the smartest credit team on the planet starts aggressively buying a beaten-down asset class they understand better than anyone alive, you do not sit on your hands and debate whether the timing is perfect.

We take a look at the action in business development companies through the second week of May and highlight some of the key themes we are watching. BDCs underperformed the income market, with several names near 1-year lows despite stable NAV returns and manageable non-accruals across the sector. Q1 median total NAV return is -0.2%, indicating sector resilience despite credit spread pressures, especially in software portfolios.

Nuveen Churchill Direct Lending remains under pressure from high-interest rates and sector headwinds, leading me to maintain a sell rating. NCDL's NAV continues to erode, with Q1 2026 NAV at $17.50 per share and net investment income declining year-over-year. While the 10.9% dividend yield is currently covered, rising PIK income and persistent NAV declines raise concerns about long-term sustainability.

Nuveen Churchill Direct Lending NYSE: NCDL reported lower first-quarter earnings as declining base rates and one-time refinancing costs weighed on net investment income, while management said the company's middle-market portfolio remained resilient despite market volatility and negative headlines around private credit.

Nuveen Churchill Direct Lending Corp. (NCDL) Q1 2026 Earnings Call Transcript

NEW YORK--(BUSINESS WIRE)--Nuveen Churchill Direct Lending Corp. (NYSE: NCDL) (“NCDL” or the “Company”), a business development company externally managed by its investment adviser, Churchill DLC Advisor LLC (the “Adviser”), and by its sub-adviser, Churchill Asset Management LLC (“Churchill”), today reported financial results for the first quarter ended March 31, 2026. Financial Highlights for the Quarter Ended March 31, 2026 Net investment income of $0.41 per share Net realized and unrealized.

NEW YORK--(BUSINESS WIRE)--Nuveen Churchill Direct Lending Corp. (NYSE: NCDL) (“NCDL” or “the Company”), today announced it will report its financial results for the first quarter ended March 31, 2026, on Thursday, May 7, 2026, before the market opens. The Company will host an earnings conference call and public webcast at 11:00 AM Eastern Time the same day to discuss its financial results. All interested parties may participate in the conference call by dialing (866)-605-1826 approximately 10-.