PSEC - Goldman Sachs BDC: This 12% Yield Is Still A Buy For Income Seekers

2024-06-07 09:00:00 ET

Summary

• Goldman Sachs BDC has reported strong earnings, with double-digit growth in net investment income and increased originations year-over-year.
• The company's first-lien exposure is higher than its peers like Capital Southwest, positioning them well for future economic downturns should they arise.
• Their balance sheet is also solid with ample liquidity, and a well-covered dividend, making it an attractive investment option.
• At a P/NAV ratio slightly above 1x, GSBD's share price appears attractive in comparison to peers, making them a buy.

Introduction

As a huge fan and longtime investor in BDCs, the high interest rate environment has boosted my income tremendously. My BDC holdings have been my top performers, with Capital Southwest ( CSWC ) leading the pack. So, in short, I have no complaints from me when it comes to the remaining higher for longer for the sector....

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