Goldman Sachs BDC, Inc. (NYSE:GSBD) Announces Quarterly Dividend of $0.32

Key Points

• Goldman Sachs BDC declared a quarterly dividend of $0.32 per share (annualized $1.28) with an ex‑dividend/record date of June 30 and payable July 28, implying a 13.8% yield.
• Dividend sustainability is a concern: the fund's current payout ratio is 92.1%, but analysts forecast $1.20 EPS next year (implying a 106.7% payout), and the company recently missed quarterly EPS ($0.22 vs. $0.29 expected) and revenue estimates.
• Insider buying: Director Carlos E. Evans purchased 50,000 shares at about $9.02 on April 2, increasing his stake by roughly 346% to 64,446 shares.

Goldman Sachs BDC, Inc. (NYSE:GSBD - Get Free Report) declared a quarterly dividend on Thursday, May 7th. Stockholders of record on Tuesday, June 30th will be paid a dividend of 0.32 per share by the financial services provider on Tuesday, July 28th. This represents a c) annualized dividend and a dividend yield of 13.8%. The ex-dividend date of this dividend is Tuesday, June 30th.

Goldman Sachs BDC has raised its dividend payment by an average of 0.0%annually over the last three years. Goldman Sachs BDC has a dividend payout ratio of 92.1% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Analysts expect Goldman Sachs BDC to earn $1.20 per share next year, which means the company may not be able to cover its $1.28 annual dividend with an expected future payout ratio of 106.7%.

Goldman Sachs BDC Price Performance

Shares of NYSE GSBD traded down $0.64 during mid-day trading on Friday, reaching $9.30. The company had a trading volume of 860,775 shares, compared to its average volume of 1,471,121. Goldman Sachs BDC has a 1-year low of $8.66 and a 1-year high of $12.03. The stock has a market cap of $1.05 billion, a PE ratio of 8.95 and a beta of 0.62. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 1.32. The company has a 50-day moving average price of $9.33 and a two-hundred day moving average price of $9.49.

Goldman Sachs BDC (NYSE:GSBD - Get Free Report) last released its earnings results on Thursday, May 7th. The financial services provider reported $0.22 earnings per share for the quarter, missing the consensus estimate of $0.29 by ($0.07). The firm had revenue of $10.35 million during the quarter, compared to analysts' expectations of $83.78 million. Goldman Sachs BDC had a return on equity of 12.23% and a net margin of 32.62%. On average, equities analysts anticipate that Goldman Sachs BDC will post 1.27 earnings per share for the current year.

Insider Activity

In other Goldman Sachs BDC news, Director Carlos E. Evans acquired 50,000 shares of the company's stock in a transaction dated Thursday, April 2nd. The shares were acquired at an average cost of $9.02 per share, for a total transaction of $451,000.00. Following the completion of the purchase, the director owned 64,446 shares of the company's stock, valued at approximately $581,302.92. This trade represents a 346.12% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.13% of the company's stock.

Institutional Trading of Goldman Sachs BDC

A number of hedge funds have recently modified their holdings of GSBD. Saxon Interests Inc. grew its position in Goldman Sachs BDC by 0.8% in the first quarter. Saxon Interests Inc. now owns 122,912 shares of the financial services provider's stock valued at $1,091,000 after acquiring an additional 1,032 shares during the period. Oppenheimer & Co. Inc. grew its position in Goldman Sachs BDC by 4.0% during the 3rd quarter. Oppenheimer & Co. Inc. now owns 27,847 shares of the financial services provider's stock worth $283,000 after acquiring an additional 1,082 shares during the last quarter. IHT Wealth Management LLC grew its position in Goldman Sachs BDC by 5.7% during the 2nd quarter. IHT Wealth Management LLC now owns 21,647 shares of the financial services provider's stock worth $244,000 after acquiring an additional 1,173 shares during the last quarter. Ameriprise Financial Inc. raised its holdings in shares of Goldman Sachs BDC by 1.4% in the third quarter. Ameriprise Financial Inc. now owns 100,190 shares of the financial services provider's stock valued at $1,019,000 after buying an additional 1,397 shares during the last quarter. Finally, Wellington Shields & Co. LLC raised its holdings in shares of Goldman Sachs BDC by 7.1% in the third quarter. Wellington Shields & Co. LLC now owns 21,650 shares of the financial services provider's stock valued at $220,000 after buying an additional 1,430 shares during the last quarter. Institutional investors own 28.72% of the company's stock.

About Goldman Sachs BDC

Goldman Sachs BDC, Inc NYSE: GSBD is an externally managed, closed-end, non-diversified management investment company organized as a business development company (BDC) under the U.S. Investment Company Act of 1940. The company's primary objective is to generate current income and capital appreciation through debt and equity investments in U.S. middle-market companies. It principally invests in senior secured loans, mezzanine debt, preferred equity and, to a lesser extent, common equity, focusing on sponsor-backed transactions and special-situation financings.

The fund is advised by affiliates of Goldman Sachs Asset Management's Private Credit Group, leveraging the firm's global research capabilities and risk management infrastructure.

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