Golub Capital BDC, Inc. Stock News

The threat of higher inflation and interest rates for longer has sent the market into turmoil. However, high yield investors have nothing to fear from this development. We share a 7%-yielding portfolio that is well-positioned to weather the current macro environment.

Part 2 of this article compares GBDC's recent dividend per share rates, yield percentages, and several other highly detailed (and useful) dividend sustainability metrics to 14 other BDC peers. This includes a comparative analysis of GBDC's cumulative undistributed taxable income ratio, percentage of floating-rate debt investments, recent weighted average annualized yield, and weighted average i...

The financial outlook for many BDCs is not promising. Already lower base rates will continue to depress results in Q4 reports. The trajectory for SOFR is not great either.

The utilities sector saw an 18.03% bull run from July to November, driven by falling interest rates and AI demand, but has pulled back 6.38% so far in December. I discuss why the sector is pulling back sharply and what my outlook for it is. I also share how I am investing right now in light of this.

The market rarely offers 10%+ yielding common equities that have a low risk of facing a cut. However, once in a while it offers up compelling opportunities like this. I share two 10%+ yields that are well-covered, and the market appears to be sleeping on them.

Golub Capital supports its dividend with net investment income and offers a 10% yield. The BDC's dividend coverage is solid, with a Q4'24 coverage ratio of 1.21X, and it maintains chiefly high-quality first lien investments. Golub Capital's key financial metrics surged due to acquisition activity, with interest income, total investment income, and net investment income increasing by 38%, 36%, a...

Part 1 of this article compares GBDC's recent quarterly change in NAV, quarterly and trailing 12-month economic return, NII, and current valuation to 14 BDC peers. It also performs a comparative analysis between each company's investment portfolio as of 6/30/2024 and 9/30/2024. This includes an updated percentage of investments on non-accrual status. I also provide a list of the other BDC stock...

We take a look at the action in business development companies through the third week of November and highlight some of the key themes we are watching. BDCs posted a strong 2% return this week as market sentiment improved and Treasury yields stabilized. Tightening credit spreads and increasing covenant-lite deals pose potential future risks, reducing portfolio yield and potential capital gains.