Dividends4Life: 8.7% Covered Dividend And Upside

8.7% Covered Dividend And Upside

Posted by D4L | Monday, June 03, 2019 | | 0 comments »

This BDC is one of my favorite high-yield income vehicles in the BDC sector. The business development company has a defensively positioned debt investment portfolio, which makes it an attractive investment in the current market environment. The company once again covered its dividend payout with net investment income in the first quarter. Shares have an attractive risk/reward at today's price point. An investment in the stock yields 8.7 percent.

I have reduced my exposure to the BDC sector considerably in the last month due to escalating trade threats and increasing market volatility. One BDC I am still overweight, though, is Goldman Sachs BDC, Inc. (GSBD) which has a high-quality, defensively positioned debt investment portfolio with a high degree of credit quality. Goldman Sachs BDC covered its dividend with net investment income in the last quarter. Shares remain attractively valued given the strength of the value proposition and the defensive nature of Goldman Sachs BDC's loan portfolio. GSBD doesn't pay any special dividends, but an investment in the BDC nonetheless yields 8.7 percent.

Source: Seeking Alpha

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