Gladstone Investment: Why This Monthly 10% Yielder Is A Buy

Summary

• Gladstone Investment is a BDC with a focus on mid-cap businesses, but stands out with its investment in market-leading, profitable companies.
• Another deviation from the norm is GAIN's exposure to non-debt like investments, which comprise ~33% of its total portfolio. Yet, most of this is in safe preferred stocks.
• On top of this, GAIN has one of the best leverage profiles in the BDC sector - in terms of debt to equity level and the underlying structure of assumed borrowings.
• GAIN is a clear buy with its ~10% yield backed by a robust portfolio and a notable margin of safety, which come in handy in the context of looming recessionary risks.

tadamichi

Gladstone Investment (NASDAQ:GAIN) is a BDC with a market cap of ~$480 million and a focus towards mid-cap businesses just as virtually every publicly traded BDC out there.

While the overall characteristics and areas of focus for GAIN are rather

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.