Golub Capital: Get Paid 11% Owning Private Credit
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Silicone Scrooge Insights407 FollowersFollow5ShareSavePlay(9min)CommentsSummaryGolub Capital (GBDC) trades at an 8% discount to book value and is rated a buy, with a fair value estimate of $14.97. GBDC's portfolio is 92% first-lien, well-diversified, and has a historically low non-accrual ratio, mitigating credit risk. Despite under-covering its dividend with GAAP NII, GBDC's low PIK income and strong asset quality support confidence in dividend sustainability. I see only a 10% probability of a dividend cut in 2026, with GBDC offering attractive risk-adjusted yield for investors able to handle moderate risk. Richard Drury/DigitalVision via Getty Images My Buy Thesis For Golub Capital (GBDC) Golub Capital is trading below book value, has a high first-lien (and floating-rate) percentage, but the private credit pool under-covers its dividend with GAAP NII. However, the BDCThis article was written bySilicone Scrooge Insights407 FollowersFollowI’m a retail investor based in Sydney with three years of experience focusing on achieving financial independence through strategic investments in AI-driven companies. Although I don’t come from a traditional finance background, I’ve developed a strong passion for understanding how artificial intelligence is transforming the global economy. Over the past few years, I’ve become increasingly fascinated by the possibilities of AI—how it’s reshaping industries, driving innovation, and creating new investment frontiers. My portfolio is primarily centered around leading AI-related companies such as NVIDIA and others at the forefront of this technological revolution. I believe we’re only in the early stages of AI’s impact, and the coming decade will present remarkable opportunities for both retail and institutional investors. My goal is to continue learning, sharing insights, and building long-term wealth by investing in the technologies shaping our future.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.