Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The investment approach focuses on high-quality dividend stocks and assets that provide long-term growth potential, which can significantly contribute to income generation [1]. - A balanced portfolio that includes both growth and income-generating assets can lead to efficient investment income and total returns that align with the S&P 500 [1].

Earlier in April, this year, I circulated a bullish piece on Ares Capital (NASDAQ: ARCC ), outlining the key reasons why it is worth buying ARCC before it jumps back in the premium territory. Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other polic ...

Financial Performance - Adjusted Net Investment Income (NII) for Q1 2025 was $0.32 per share, covering the dividend of $0.32 per share[14, 15] - Net Asset Value (NAV) as of March 31, 2025, was $12.45 per share, a decrease from $12.55 per share on December 31, 2024[14, 15] - The company permanently waived $1.5 million of incentive fees in connection with the dividend protection program[14] - The fair value of investments decreased to $3.0477 billion as of March 31, 2025, compared to $3.1045 billion as of December 31, 2024[16] Portfolio Composition and Risk - 96.5% of the portfolio is rated green on the company's heatmap, with no names rated red[14, 35] - The company's employees and senior advisors own approximately 13% of the company[14, 15] - Only <1% of the portfolio fair value is meaningfully exposed to global tariffs, compared to 13% on average amongst peers[25] - The company's portfolio consists of 93% first lien debt[65] Investment Activity - Gross originations for Q1 2025 were $120.8 million, while repayments totaled $160.4 million, resulting in net originations of -$39.5 million[16, 63] - The company repaid approximately $42 million, primarily from full redemption of UniTek's PIK 2nd Lien Term Loan and PIK Super Senior Preferred II[14] Leverage and Liquidity - Pro forma statutory debt to equity ratio is 1.09x as of March 31, 2025[15, 87]

GOLUB CAPITAL BDC, INC. EARNINGS PRESENTATION QUARTER ENDED MARCH 31, 2025 Confidential | for discussion purposes only Disclaimer Some of the statements in this presentation constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained in this presentation involve risks and uncertainties, including statements as to: our future operating results; our business prospects and the prospects of our portfolio companie ...

Financial Performance - Total Investment Income (TII) increased by 367% from $91 million in 4Q 2024 to a record $125 million in 1Q 2025 [6, 12] - Net Investment Income (NII) increased from $21 million or $020 per share in 4Q 2024 to $46 million or $040 per share in 1Q 2025 [6, 14] - Net assets decreased from $1361 million or $1179 per share in 4Q 2024 to $1323 million or $1146 per share in 1Q 2025 [6, 17] Portfolio Composition - The fair value of the total investment portfolio was $3419 million as of March 31, 2025 [11, 29] - Debt investments comprised 710% of the portfolio with a fair value of $2429 million and a weighted average current yield of 123% [23] - CLO investments accounted for 153% of the portfolio with a fair value of $522 million [23, 30] Distribution - The Board approved a quarterly distribution of $037 per share for the quarter ending June 30, 2025 [6, 7] - This equates to a 147% annualized yield on the May 2, 2025 closing market price of $1009 and a 129% annualized yield on the March 31, 2025 NAV of $1146 per share [6, 7] CLO Joint Venture - GECC deployed approximately $48 million into the CLO JV and holds a 7125% interest [47] - The CLO JV generated a 29% IRR since inception in April 2024 [50] - The CLOs and Warehouse have exposure to approximately $11 billion of underlying assets [50]

Group 1 - The Cash Flow Kingdom Income Portfolio aims to achieve an overall yield in the range of 7% to 10% by combining various income streams for a steady payout [1] - Golub Capital BDC (GBDC) is highlighted as a high-quality business development company with a current regular dividend yield of 11% [1] - The portfolio's price may fluctuate, but the income stream remains consistent, indicating a focus on stability in income generation [1] Group 2 - The Cash Flow Club, where the author contributes, focuses on company cash flows and access to capital, providing features like a personal income portfolio targeting a yield of over 6% [1] - The community offers resources such as a "Best Opportunities" List and coverage of sectors including energy midstream, commercial mREITs, BDCs, and shipping [1]

Core Insights - Business Development Companies (BDCs) are favored for high income during periods of inflated interest rates, but not all BDCs are equal in quality [1] Group 1: Investment Strategy - A hybrid investment strategy combining classic dividend growth stocks with BDCs, REITs, and Closed End Funds can enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1]

Core Viewpoint - The article highlights three high-yield dividend stocks with an average yield of 8.63%, presenting them as attractive investment opportunities for income-seeking investors. Group 1: Dividend Stocks Performance - Public companies that regularly pay dividends are typically profitable and capable of long-term growth, supported by historical data [2] - A study by Hartford Funds and Ned Davis Research shows that dividend-paying stocks outperformed non-payers by 9.2% annually over a 51-year period [4] Group 2: Investment Opportunities - Pfizer offers a yield of 7.46%, with sustainable earnings despite concerns over tariff impacts and a decline in COVID-19 therapy sales [7][9] - Verizon Communications has a yield of 6.39%, significantly higher than the S&P 500 average, and is positioned to benefit from the 5G expansion despite facing growth challenges [13][16] - PennantPark Floating Rate Capital boasts a yield of 12.04%, focusing on debt investments in middle-market companies, benefiting from higher market-rate yields due to its variable-rate debt portfolio [20][22] Group 3: Financial Metrics and Growth - Pfizer's revenue increased from $41.9 billion in 2020 to $63.6 billion in 2024, marking a 52% growth [9] - Verizon's broadband connections grew by 13.7% year-over-year, reaching 12.6 million [17] - PennantPark's weighted average yield on debt investments is 10.6%, with a significant portion of its debt securities being first-lien secured [22][23]

On February 24, this year, I established a separate investment account specifically for my BDC investments. The idea with this account is to better track and measure the performance of BDCs so that I could, among other things, share the progress with you in aRoberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvi ...

Group 1 - The article discusses the recent changes in the valuation of Business Development Companies (BDCs), indicating that many were previously overvalued but the situation has now shifted [1] - The investment group Trade With Beta is mentioned, which focuses on identifying mispriced preferred stocks and baby bonds, along with providing weekly reviews of over 1200 equities and IPO previews [1] - The article highlights a beneficial long position in GSBD, indicating a positive outlook on this particular stock [1] Group 2 - There is a mention of a short position on OXSQ, suggesting a bearish outlook on this specific investment [2] - The article emphasizes that past performance does not guarantee future results, indicating a cautious approach to investment recommendations [2] - It clarifies that the views expressed may not reflect those of Seeking Alpha as a whole, highlighting the diversity of opinions among analysts [2]