Golub Capital: Another Good Quarter From This 11%-Yielding BDC

May 15, 2025 10:56 AM ETGolub Capital BDC (GBDC)GBDC12 Comments
(7min)

Summary

  • Golub Capital BDC delivered a solid quarter with a 2% total NAV return, trading at an 11% dividend yield and a 6% discount to NAV.
  • The company's portfolio is well-diversified with 368 positions, primarily in floating-rate first-lien loans, focusing on the software and healthcare sectors.
  • Despite a slight NAV decline and net realized losses, GBDC's low-cost fee structure and resilient portfolio have driven strong performance, beating the median BDC by 2.5%.
  • GBDC remains a strong performer with stable performance, attractive valuation, and high portfolio quality, making it worth a starter position.
  • Systematic Income members get exclusive access to our real-world portfolio. See all our investments here »
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In this article, we catch up on the latest quarterly results of the Golub Capital BDC (NASDAQ:GBDC). The company delivered another solid quarter with a 2% total NAV return. It trades at an 11% dividend yield (with the same adjusted NII yield

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ADS Analytics is a team of analysts with experience in research and trading departments at several industry-leading global investment banks. They focus on generating income ideas from a range of security types including: CEFs, ETFs and mutual funds, BDCs as well as individual preferred stocks and baby bonds.

ADS Analytics runs the investing group Systematic Income which features 3 different portfolios for a range of yield targets as well interactive tools for investors, daily updates and a vibrant community.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of GBDC 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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