Why Gladstone Capital Corporation (GLAD) Deserves a Spot Among Top BDC Stocks

Gladstone Capital Corporation (NASDAQ:GLAD) is included among the 11 Best BDC Stocks to Buy Now.

Why Gladstone Capital Corporation (GLAD) Deserves a Spot Among Top BDC Stocks

Image by Alexsander-777 from Pixabay

Gladstone Capital Corporation (NASDAQ:GLAD) focuses on providing both debt and equity financing to smaller, lower middle-market businesses. The firm puts its money mainly into secured first- and second-lien loans — the kind that come with a strong safety net — and focuses on companies that already generate consistent cash flow. It’s a strategy built around two core goals: keeping income steady and growing the value of its investments over time.

As a BDC, Gladstone Capital Corporation (NASDAQ:GLAD) operates under a special set of rules that shape how it’s structured and how it rewards investors. The management team draws on years of experience and a solid network across industries to find promising deals while keeping risk in check. Much of its attention remains on protecting credit quality and staying anchored in secured lending. Maintaining its BDC status is also key as it brings certain tax perks and, just as important, keeps shareholder returns at the forefront of the firm’s priorities.

Gladstone Capital Corporation (NASDAQ:GLAD)’s history of offering supplemental dividends makes it an appealing option for income investors. On September 15, the company declared an additional dividend of $0.10 per share. Its monthly dividend comes in at $0.165 per share for a dividend yield of 9.27%, as of October 5.

While we acknowledge the potential of GLAD 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 GLAD 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.