TSLX - Golub Capital BDC - Expect A Stable 8% Dividend And Slight Share Appreciation Over Time
Golub Capital BDC (GBDC) has a reputation on SeekingAlpha as a low-risk & steady BDC (business development company) with solid underwriting results. Just how does a BDC work though? For the uninitiated, here's a brief explanation: BDCs are like banks - they aggregate capital by collecting equity capital and deposits (in the form of bonds) and use them to make loans. These loans make investment income, some of which is used to pay management fees, employee salaries, interest on the deposits (bonds), etc. The leftover funds are then distributed to shareholders as dividends.