GBDC Stock Recent News

We take a look at the action in business development companies through the third week of October and highlight some of the key themes we are watching. BDCs finished lower this week and remain in the red month-to-date. BDC NAVs move around through the reporting period as a result of retained income as well as unrealized and realized portfolio changes.

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Golub Capital BDC increased its quarterly dividend rate by 12% and covered its dividend with net investment income in 2023. The company overhauled its management fee structure, leading to higher NII and NII returns on net asset value. GBDC stock is trading close to net asset value, limiting potential upside, but should be considered a Hold based on dividend coverage and yield.

We take a look at the action in business development companies through the last week of September and highlight some of the key themes we are watching. BDCs eked out a small gain during the week and generated a total return of around 1.5% for September. We discuss the factors behind BDC resilience over the past year.

High interest rates, decent demand for personalized finance, solid asset quality and regulatory changes will keep aiding the Zacks SBIC & Commercial Finance industry players like Hercules Capital (HTGC), Golub Capital (GBDC) and BlackRock TCP (TCPC).

Golub Capital BDC (GBDC) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).

Many BDCs have been reducing their fee structures, which has been attracting higher quality and institutional investors to the sector. We recently sent out a "Buy" recommendation discussing GBDC's reduction in management fees driving increased dividends paid to shareholders. GBDC now has among the lowest expense ratio in the sector, driving higher returns and likely higher stock price, which is one of the reasons I continue to hold.

We take a look at the action in business development companies through the second week of August and highlight some of the key themes we are watching. BDCs were down slightly this week as the market paused to take stock of conflicting inflation data. BDC Q2 earnings are coming in as very strong so far.

Does Golub Capital BDC (GBDC) have what it takes to be a top stock pick for momentum investors? Let's find out.

Golub Capital BDC offers a strong dividend yield of over 10% with adequate NII coverage. Investors should closely monitor the increase in the percentage of its portfolio classified in higher risk categories. The new dividend policy provides income investors with clearer guidance on special dividends and may attract more investors.