Golub Capital: The Dividend Cut Took Place As Projected, But I'm Still Not Buying
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Roberts Berzins, CFA14.25K FollowersFollow5ShareSavePlay(10min)Comments(2)SummaryGolub Capital BDC now trades at an 18% discount to NAV after a dividend cut (as I projected) and sector-wide selloff.GBDC's base dividend coverage is a solid 118%, but its 11% yield lags the sector's 14%+ average.Elevated SaaS exposure (27% of portfolio) and rising non-accruals raise relative risk versus peers trading at deeper discounts.I see no compelling reason to buy GBDC at 0.82x P/NAV when similar or better BDCs trade at 0.75x. Khanchit Khirisutchalual/iStock via Getty Images In July 2025, I wrote an article on Golub Capital BDC (GBDC) titled Golub Capital: This Is Why We Are Likely To Talk About Dividend Cut Soon. My main concern about GBDC was thatThis article was written byRoberts Berzins, CFA14.25K FollowersFollowRoberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG investing certificate holder, has had an internship in Chicago board of trade (albeit, being resident and living in Latvia), and is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets.Analyst’s Disclosure: I/we have a beneficial long position in the shares of KBDC 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.