Palmer Square Capital BDC boosts 2Q-25 cash return with extra $0.06 dividend

Rhea-AI Filing Summary

Palmer Square Capital BDC Inc. (NYSE: PSBD) filed a Form 8-K announcing a shareholder–friendly capital distribution. On 23 June 2025 the Board declared a supplemental dividend of $0.06 per share for 2Q-25, payable 14 July 2025 to holders of record on 27 June 2025. The payment will be funded from excess quarterly undistributed net investment income. The supplemental amount is in addition to the previously declared base dividend of $0.36 per share scheduled for the same payment and record dates, lifting the total 2Q-25 cash distribution to $0.42 per share.

No other operational or financial metrics were disclosed in the filing. There were no changes to previously announced guidance, no material transactions, and no adjustments to the Company’s capital structure.

Key dates:

• Record date: 27 June 2025
• Payment date: 14 July 2025
• Supplemental dividend: $0.06/sh
• Base dividend: $0.36/sh

The declaration signals continued excess net investment income generation and reinforces the Company’s intent to return surplus earnings to shareholders in cash.

Positive

• $0.06/share supplemental dividend increases total 2Q-25 payout to $0.42, a 17% boost that reflects excess net investment income and supports cash-flow strength.

Negative

• None.

Insights

BDC Equity Analyst

TL;DR: Supplemental $0.06/sh boosts 2Q-25 payout 17%; signals strong NII coverage and positive cash-flow trend.

The incremental dividend raises the quarter’s cash return from $0.36 to $0.42 per share, implying a 17% uplift and an attractive annualized yield increase for income-oriented investors. Because BDCs must distribute substantially all taxable income, supplemental payouts often indicate portfolio earnings running ahead of the base dividend policy. While the filing lacks portfolio metrics or leverage data, the decision suggests solid net interest margins and stable credit quality. Given that the payment comes from undistributed NII rather than return of capital, the event is categorically positive for dividend sustainability and may support near-term share price performance.

Income-Focused Portfolio Manager

TL;DR: Extra cash return improves yield, modest yet meaningful for income funds.

Assuming PSBD’s last reported NAV, the supplemental dividend adds roughly 40–50 bps to quarterly cash yield, benefiting yield-centric mandates. Because ex-date precedes record date by only a few days, trading strategies must act quickly to capture the distribution. There are no downside signals—no leverage increase or asset sales tied to the payment—so risk profile remains unchanged. I classify the announcement as impactful but narrowly focused on income investors rather than broad fundamental change.

0001794776false00017947762025-06-232025-06-23

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 23, 2025

Palmer Square Capital BDC Inc.

(Exact name of Registrant as Specified in Its Charter)

Maryland			814-01334	84-3665200
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
1900 Shawnee Mission Parkway, Suite 315
Mission Woods, Kansas				66205
(Address of Principal Executive Offices)				(Zip Code)

Registrant’s Telephone Number, Including Area Code: 816 994-3200

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.001 per share		PSBD		New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 8.01 Other Events.

On June 23, 2025, Palmer Square Capital BDC Inc. (the “Company”) issued a press release announcing the declaration of a second quarter 2025 supplemental dividend of $0.06 per share. The second quarter 2025 supplemental dividend is payable on July 14, 2025 to stockholders of record as of June 27, 2025. The supplemental dividend will be paid out of the excess of the Company’s quarterly undistributed net investment income, above the previously declared second quarter 2025 base dividend of $0.36 per share, which is payable on July 14, 2025 to shareholders of record as of June 27, 2025.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1		Press release dated June 23, 2025
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, Palmer Square Capital BDC Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			PALMER SQUARE CAPITAL BDC INC.
Date:	June 23, 2025	By:	/s/ Jeffrey D. Fox
			Jeffrey D. Fox, Chief Financial Officer

FAQ

What dividend did Palmer Square Capital BDC (PSBD) announce for Q2 2025?

PSBD declared a supplemental dividend of $0.06 per share in addition to its $0.36 base dividend, bringing the total to $0.42 per share.

When is the record date for PSBD’s supplemental dividend?

Shareholders must be on record by 27 June 2025 to receive the supplemental dividend.

When will PSBD pay the Q2 2025 supplemental dividend?

The supplemental dividend will be paid on 14 July 2025.

How is PSBD funding the supplemental dividend?

The payment will be funded from excess quarterly undistributed net investment income, not from return of capital.

Does the filing mention any other material events or financial results?

No. The Form 8-K only covers the supplemental dividend; it does not provide additional financial data or disclose other events.