Gladstone Capital: A Growing 9.6% Yielding BDC With NII Upside

Jul. 10, 2023 3:47 AM ETGladstone Capital (GLAD)HTGC, MAIN, GLAD2 Comments
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Summary

  • Gladstone Capital Corporation has seen solid portfolio growth in the last year due to new investments and has net investment income (NII) upside in a rising-rate environment.
  • The business development company (BDC) covers its dividend with net investment income and has NII upside, making it a good addition to a passive income portfolio.
  • Gladstone Capital trades at a 9% premium to net asset value due to its credit quality, portfolio growth in a difficult market, and NII upside.

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Ridofranz

Gladstone Capital (NASDAQ:GLAD) is a well-managed business development company that provides loans to lower middle market businesses and has an operating history dating back to 2001.

The BDC has seen solid portfolio growth in the last year due to

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A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of GLAD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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