Jun. 21, 2025 10:39 PM ETGolub Capital BDC (GBDC)FSK, BXSL, ARCC, HTGC, GBDCOn the Pulse14.59K Followers(9min)I maintain my 'Hold' rating on GBDC due to ongoing concerns about dividend sustainability, despite a recent improvement in the payout ratio to 100%.The cessation of special dividends reduced short-term risk, but the base dividend remains at risk if adjusted net investment income doesn't stabilize.GBDC's portfolio quality is average, with a low non-accrual ratio, but negative net funds growth and dilution from the merger weigh on per-share results.With the stock trading near NAV and no margin of safety in the dividend, I see GBDC as fairly valued and recommend waiting for greater clarity.We AreIn my February piece on Golub Capital BDC (NASDAQ:GBDC) I modified my stock classification from ‘Buy’ to ‘Hold’, predominantly because the business development company experienced a concerning rise of its dividend pay-out ratio above 120% which signifiedThis article was written byOn the Pulse14.59K FollowersA 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 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.Comments