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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 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.

24/7 Wall Street Insights The Federal Reserve's rate cut to calm market speculation may potentially re-fuel higher inflation and possibly trigger a recession.

One of the most critical events in the history of finance happened back in 1990. It was the culmination of a transformative two-decade journey that forever changed the way companies are financed.

While long-term interest rates are falling in anticipation of Fed rate cuts, there are still some very attractive high-yield opportunities in the market. We discuss 3 that yield 10%+ right now. We compare them and share our take on which is the most attractive right now.

Golub Capital BDC out-earned its base dividend with net investment income in 3Q24, post-merger with Golub Capital BDC 3. The stock offers an attractive 11% yield, solid credit quality, and is selling at a compelling net asset value multiple. Portfolio quality remains strong post-merger, with a 5% discount to NAV making it a buy for passive income investors.

Golub Capital BDC (NASDAQ:GBDC ) Q3 2024 Earnings Conference Call August 6, 2024 11:00 AM ET Company Participants David Golub - Chief Executive Officer Matt Benton - Chief Operating Officer Chris Ericson - Chief Financial Officer Conference Call Participants Robert Dodd - Raymond James Finian O'Shea - Wells Fargo Paul Johnson - KBW Operator Hello everyone, and welcome to GBDC's Earnings Call for the Fiscal Quarter ended June 30, 2024. Before we begin, I'd like to take a moment to remind our listeners, that remarks made during this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Golub Capital BDC (GBDC) came out with quarterly earnings of $0.48 per share, missing the Zacks Consensus Estimate of $0.49 per share. This compares to earnings of $0.44 per share a year ago.

Golub Capital operates as a business development company that generates earnings through debt investments to middle market companies. Golub Capital's price fell by nearly 5% over the last week. This price retraction has increased the valuation appeal. GBDC offers a strong portfolio of debt investments, high dividend yield of 10.6%, and potential for growth despite lower interest rates.

Diversification is key for income investors, and BDCs offer a professionally managed portfolio of loans across different sectors. Golub Capital presents a buy-the-dip opportunity with strong operating fundamentals, high dividend coverage, and potential for market-beating returns with special dividends. GBDC is well-positioned with a conservatively managed portfolio and a more favorable fee structure toward shareholders.