Carlyle Secured Lending: Dividend Reset Priced In

The Asian Investor31.78K FollowersFollow5ShareSavePlay(9min)CommentsSummaryCarlyle Secured Lending Inc. trades at a 34% discount to NAV, reflecting sector-wide BDC concerns as well as dividend risk.CGBD’s portfolio grew 37% year-over-year in Q4'25, driven by record organic loan origination as well as a 2024 merger with another investment company.The firm's net investment income per share declined ~30% year-over-year in Q4 '25, resulting in a CGBD dividend coverage ratio drop to 82.5%. A dividend cut is therefore likely.Limited SaaS exposure and a large discount to NAV mitigate risks for CGBD investors.A dividend reset appears likely in the near term, but CGBD stock's valuation offers a high safety margin for speculative buyers. Thanaphum Tachakanjanapong/iStock via Getty Images Like so many other private credit platforms, Carlyle Secured Lending Inc. (CGBD) has suffered a significant down-rating of its share price and a compression of its valuation factor amid surging concerns about SaaSThis article was written byThe Asian Investor31.78K FollowersFollowI am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon.Analyst’s Disclosure: I/we have a beneficial long position in the shares of ARCC, TRIN, HTGC 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.