Golub Capital BDC (GBDC): A Unique BDC Dividend Stock Backed by Innovation and Growth

Golub Capital BDC, Inc. (NASDAQ:GBDC) is included among the 11 Best BDC Stocks to Buy Now.

Golub Capital BDC (GBDC): A Unique BDC Dividend Stock Backed by Innovation and Growth

Photo by NeONBRAND on Unsplash

Golub Capital BDC, Inc. (NASDAQ:GBDC) works with mid-sized US companies that need tailored financing to fund their growth. Most of its clients are backed by private equity firms, and the company focuses mainly on senior secured loans, one-stop lending structures, and occasional equity investments when the fit is right.

Golub Capital BDC, Inc. (NASDAQ:GBDC)’s success comes down to a few things: steady access to solid deal opportunities, disciplined underwriting, and long-term relationships across the private equity world. Being part of the broader Golub Capital network gives it an advantage when it comes to finding and structuring deals. Management also keeps a close eye on compliance to maintain its status as both a business development company and a regulated investment company — an arrangement that helps protect its tax benefits and supports shareholder returns.

Golub Capital BDC, Inc. (NASDAQ:GBDC) has been rewarding investors with regular dividends since 2010. During this period, the company has raised its payouts multiple times and has also offered supplemental dividends. It currently pays a quarterly dividend of $0.39 per share and has a dividend yield of 11.57%, as recorded on October 5.

While we acknowledge the potential of GBDC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GBDC and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: Dividend Champions List: Top 15 Stocks to Buy and 11 Best Affordable Dividend Stocks to Buy Now.

Disclosure: None.