Carlyle Secured Lending: A Dip, Discount To NAV, And 11.6% Dividend Yield

2025-09-08 22:05:32 ET

Carlyle Secured Lending ( CGBD ) is paying out a compelling double-digit dividend yield from a portfolio of credit to U.S. middle-market companies. The business development company ("BDC") is externally managed by a subsidiary of The Carlyle Group ( CG ), a global asset manager with $465 billion in assets under management. CGBD last declared a base quarterly cash dividend of $0.40 per share , kept unchanged from its prior distribution, and $1.60 per share annualized for an 11.6% dividend yield. However, the BDC did not declare a special dividend, its usual sweetener that had been paid out since the pandemic. The special has ranged from 5 cents to 8 cents per share since and has not been paid out for the last two quarters. It effectively means CGBD's aggregate dividend payouts have declined, placing pressure on its common shares as shareholders demand a higher base dividend yield to compensate. CGBD also has a public trading baby bond; the 8.20% Notes due 2028 ( CGBDL )....

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