CGBD - Carlyle Secured Lending: High Quality BDC But Trades At A Premium

2024-05-22 08:45:01 ET

Summary

• Carlyle Secured Lending has outperformed the S&P 500 due to its high dividend yield and consistent level of high distributions received.
• CGBD's portfolio of debt investments is highly diversified and focused on first lien debt, providing a layer of security.
• The company's financials show strong growth in net investment income and net asset value, with a healthy dividend coverage of 135%.
• The current dividend yield is 9% and a supplemental of $0.07 per share was recently announced.
• The price trades near all-time highs at a premium to NAV. Future rate cuts present a more attractive opportunity for entry.

Overview

As a dividend investor, I really value the income produced from my portfolio. The income generated from my investments has the power to pay bills, fund vacations, or help take my family out for a nice meal. While many may see an emphasis on dividends as something that ultimately takes away from total return, I disagree. It's important to remember that all investors do not have the same goals, objectives, or priorities. Sometimes this focus on income actually outperforms regular indexes like the S&P 500 ( SPY ) due to the consistent level of high distributions received. Business Development companies have been a great way to offset this higher interest rate environment that we've been in for the last two years....

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