Golub Capital BDC, Inc. to Issue Quarterly Dividend of $0.33 (NASDAQ:GBDC)

Key Points

• Golub Capital BDC declared a quarterly dividend of $0.33 per share (annualized $1.32) yielding about 11.0%, with record/ex-dividend date on March 13 and payment on March 30.
• The dividend is currently covered but tightening: the company has a 73.3% payout ratio and analysts forecast $1.60 EPS next year (implying an ~82.5% payout ratio); the most recent quarter delivered $0.38 EPS in line with estimates but missed on revenue.
• Shares traded down to $12.05 (-1.2%) with a market cap of $3.17B and a PE of 9.6, and analysts hold a consensus Buy rating with a $14.38 average target price.

Golub Capital BDC, Inc. (NASDAQ:GBDC - Get Free Report) announced a quarterly dividend on Monday, February 2nd. Investors of record on Friday, March 13th will be given a dividend of 0.33 per share by the investment management company on Monday, March 30th. This represents a c) annualized dividend and a yield of 11.0%. The ex-dividend date of this dividend is Friday, March 13th.

Golub Capital BDC has increased its dividend payment by an average of 0.0%per year over the last three years. Golub Capital BDC has a dividend payout ratio of 73.3% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Golub Capital BDC to earn $1.60 per share next year, which means the company should continue to be able to cover its $1.32 annual dividend with an expected future payout ratio of 82.5%.

Golub Capital BDC Trading Down 1.2%

NASDAQ GBDC traded down $0.15 on Wednesday, hitting $12.05. The company's stock had a trading volume of 998,437 shares, compared to its average volume of 2,601,583. The company's 50-day moving average is $13.00 and its 200 day moving average is $13.66. The firm has a market cap of $3.17 billion, a PE ratio of 9.64 and a beta of 0.45. Golub Capital BDC has a 1-year low of $11.77 and a 1-year high of $15.63. The company has a quick ratio of 2.24, a current ratio of 2.24 and a debt-to-equity ratio of 1.25.

Golub Capital BDC (NASDAQ:GBDC - Get Free Report) last issued its quarterly earnings data on Wednesday, February 4th. The investment management company reported $0.38 earnings per share for the quarter, hitting the consensus estimate of $0.38. The company had revenue of $110.18 million for the quarter, compared to analysts' expectations of $208.89 million. Golub Capital BDC had a net margin of 38.57% and a return on equity of 10.37%. During the same quarter in the previous year, the firm posted $0.42 earnings per share. As a group, analysts predict that Golub Capital BDC will post 1.6 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on GBDC shares. Weiss Ratings restated a "hold (c)" rating on shares of Golub Capital BDC in a research report on Monday, December 29th. Wells Fargo & Company dropped their price target on shares of Golub Capital BDC from $14.00 to $13.00 and set an "overweight" rating on the stock in a research report on Friday, February 6th. Capital One Financial set a $15.00 price objective on shares of Golub Capital BDC in a research note on Thursday, January 15th. Lucid Cap Mkts raised shares of Golub Capital BDC to a "strong-buy" rating in a research note on Thursday, January 15th. Finally, Keefe, Bruyette & Woods decreased their price target on Golub Capital BDC from $15.00 to $14.00 and set an "outperform" rating for the company in a report on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, Golub Capital BDC has a consensus rating of "Buy" and a consensus target price of $14.38.

About Golub Capital BDC

Golub Capital BDC NASDAQ: GBDC is a publicly traded business development company specializing in providing debt and equity financing solutions to middle-market companies in the United States. Externally managed by Golub Capital LLC, the firm focuses on building a diversified portfolio of senior secured loans, unitranche facilities and second-lien debt instruments designed to support growth, acquisitions and recapitalizations. As a closed-end investment vehicle, GBDC offers investors direct exposure to private credit strategies within a regulated structure.

The company's core business activities center on originating and managing bespoke financing arrangements for U.S.

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