Golub Capital BDC

Golub Capital BDC Inc engages in the business of investment. It seeks to create a portfolio that includes primarily senior secured and one stop loans. The company was founded in July 2007 and is headquartered in New York, NY.

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GBDC reports record earnings, announces merger, and faces market challenges

GBDC delivered strong financial performance in Q2 2024, marked by record-high earnings per share and NAV growth, supported by robust credit performance and liquidity.
The company's strategic initiatives, including the merger announcement and fee reductions, demonstrate a commitment to enhancing shareholder value and navigating market challenges.
While facing headwinds from market conditions, GBDC's management remains confident in the company's resilience and competitive position, highlighting opportunities for growth and value creation.
Investors should monitor GBDC's ability to capitalize on opportunities, manage challenges effectively, and sustain its strong performance in the evolving market landscape.

GBDC reports mixed Q3 results, focuses on quality over quantity

GBDC's Q3 showed a mix of successes and challenges, with strong borrower performance and increased origination volume offset by credit write-downs. The company remains cautiously optimistic about future opportunities and plans to prioritize quality in its leverage targets.

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Golub Capital BDC currently sports a 10% yield that is well-covered by their income. Golub Capital BDC remains a high-quality investment despite the slight increase in non-accruals during Q3 earnings. In this article, I discuss their latest earnings, and why the BDC remains a smart, attractive income play in the current market.

Golub Capital: A Good Blend Of Yield, Quality, And Income In An Expensive Sector

One of the biggest corporate news this week was reports that Scott Kapnick, the former head of Goldman Sachs investment bank, was considering options for his HPS Investment Partners. There are three likely strategies, including an outright sale, an initial public offering, or selling a stake.

Golub Capital stock could benefit from HPS Investment buyout

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Invest In All Weather BDC Dividend Portfolio

Golub Capital offers a high, well-covered 10.3% dividend yield, supported by a strong balance sheet and low non-accrual rate. GBDC's diversified portfolio of first-lien loans across defensive sectors like software and healthcare mitigates risk and enhances stability. The current high interest rate environment benefits GBDC, resulting in a weighted average yield on income-producing assets to 12.3%.

Golub Capital: 10% Yield, 123% Dividend Coverage Make It A Buy

Golub Capital's base dividend will withstand a few more cuts, but investors have to be wary of the long-term risks and potential yield-on-cost. Despite the recent interest rate cut, GBDC's dividend coverage remains strong. GBDC trades around its net asset value, presenting an attractive valuation but with risks tied to interest rates, capital gathering, and economic conditions.

Golub Capital's Base Dividend Will Withstand A Few More Cuts

Golub Capital BDC trades at a slight discount to NAV despite strong dividend coverage and below-average leverage. Q3 2024 earnings report shows GBDC's non-accruals remain low, with leverage decreasing to 1.05x debt-to-equity. Adjusted NII per share significantly exceeds quarterly distribution, ensuring a robust 123% coverage.

Golub Capital: Healthy And Well-Covered 11% Dividend

I have been bearish on BDCs for a while, and this caution has paid off. However, some good news just arrived for the sector. I discuss what this is and share some of my top picks of the moment in light of this good news.

Good News For BDCs

NEW YORK--(BUSINESS WIRE)--Golub Capital BDC, Inc., a business development company (NASDAQ: GBDC, www.golubcapitalbdc.com), announced today that it will report its financial results for the quarter and the year ended September 30, 2024 on Tuesday, November 19, 2024 after the close of the financial markets. Golub Capital BDC, Inc. will host an earnings conference call at 10:00 a.m. (Eastern Time) on Wednesday, November 20, 2024 to discuss its quarterly financial results. All interested parties m.

Golub Capital BDC, Inc. Schedules Release of Fiscal Year 2024 Fourth Quarter Results

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The Best BDC To Buy For Fed Rate Cuts

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Golub Capital BDC delivered a strong quarterly result with a 4.8% total NAV return, trading at an 11.3% dividend yield and a 3% discount to book. The company's diversified loan portfolio focuses on floating-rate first-lien loans, with top sectors in software and healthcare. Despite a 6% drop in adjusted net investment income, GBDC's shareholder-friendly fee structure and consistent NAV growth make it an attractive investment.

Golub Capital BDC: A Solid Quarter But Worse Under The Hood

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 interest rate on outstanding borrowings. GBDC's “base” dividend sustainability remains strong. When comparing/analyzing all metrics (including additional metrics not mentioned), GBDC is currently deemed to be undervalued (BUY).

Golub Capital BDC's NAV, Valuation, And Dividend Vs. 14 BDC Peers - Part 2 (Includes Dividend Projection)

Golub Capital BDC's merger with Golub Capital 3 BDC significantly increased its portfolio value and net investment income, enhancing its investment appeal. The BDC's net investment income comfortably covers its dividend, offering a moderately safe 12% yield for income investors. Despite a slight increase in non-accrual percentage, the long-term trend shows a considerable improvement in asset quality over the past year.

Golub Capital BDC: A Strong 12% BDC Yield Trading Below NAV

Insider buying in Golub Capital BDC and Capital Southwest suggests potential for higher share prices, despite recent sector retraction due to anticipated lower interest rates. Golub Capital BDC offers an attractive investment with a 2.5% discount to NAV, a strong balance sheet, and significant insider buying. I currently rate them a buy. Capital Southwest still trades at a 51.4% premium above its NAV price, prompting me to assign a hold rating as the share price could pull back further in the near future.

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BDCs have outperformed REITs since early 2022 due to rising short-term interest rates and a strong economy, but dynamics shifted in July. With long-term rates declining and recession fears rising, BDCs face dividend cut risk. One BDC recently slashed its dividend aggressively and more are likely to follow.

Dividend Cut Alert: Bad News For BDCs

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10 Stocks And 5 Funds For A Powerful Dividend Snowball

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Weak asset quality high rates and macroeconomic woes are likely to hurt Zacks SBIC & Commercial Finance industry players like Golub Capital (GBDC), Barings BDC (BBDC) and Crescent Capital (CCAP). Yet, a rise in financing demand across sectors is likely to aid.

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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. Part 1 also performs a comparative analysis between each company's investment portfolio as of 3/31/2024 and 6/30/2024. This includes an updated percentage of investments on non-accrual status. I also provide a list of the other BDC stocks I currently believe are undervalued (a buy recommendation), overvalued (a sell recommendation), and appropriately valued (a hold recommendation).

Golub Capital BDC's NAV, Valuation, And Dividend Vs. 14 BDC Peers - Part 1 (Includes Recommendations As Of 8/23/2024)

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News for Golub Capital BDC ETF (GBDC)