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Golub Capital BDC faces rising risks with dividend coverage at 100% and portfolio value down 8.5%

Company Fundamentals
05 Aug 2026
Seeking Alpha
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Bearish
Golub Capital BDC faces rising risks with dividend coverage at 100% and portfolio value down 8.5%

Golub Capital BDC is rated a 'Hold' due to increasing non-accrual loans and a dividend coverage ratio that just meets 100%, leaving no safety margin. The portfolio value declined by 8.5% year-over-year, and non-accruals rose to 1.9% at fair value, heightening the risk of a dividend cut. If current trends continue, a second dividend cut in 2026 is likely. Despite trading at an 8% discount to net asset value, the risks to dividends and portfolio quality limit upside potential for investors.

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