Goldman Sachs BDC, Inc. (NYSE: GSBD) has declared a substantial quarterly dividend of $0.32 per share, set to be distributed to shareholders on January 27, 2024. This announcement came on November 6, 2023, and marks a significant increase from the previous quarterly dividend of $0.04. Shareholders of record as of December 31, 2023, will benefit from this new payout, which equates to an annualized yield of 13.3%.
The increase in dividend represents a remarkable 700% jump, illustrating Goldman Sachs BDC’s commitment to returning value to its investors. Despite a high dividend payout ratio of 92.1%, the company has managed to cover its dividend with earnings. Analysts project that Goldman Sachs BDC will earn $1.83 per share in the upcoming year, indicating that the company should comfortably maintain its annual dividend of $1.28. The expected future payout ratio is estimated at 69.9%.
Stock Performance and Institutional Trading
On Monday, shares of Goldman Sachs BDC opened at $9.63. The stock has shown variability, with a 50-day moving average of $9.82 and a 200-day moving average of $10.70. Over the past year, the stock has experienced a low of $9.35 and a high of $13.44. Its market capitalization stands at approximately $1.10 billion, accompanied by a price-to-earnings (PE) ratio of 8.30 and a beta of 0.64.
Institutional interest in Goldman Sachs BDC has also been notable. In the third quarter, CIBC Bancorp USA Inc. established a new position valued at about $138,000. Centaurus Financial Inc. increased its holdings by 67.2%, owning 32,432 shares after acquiring an additional 13,035 shares. Advisory Services Network LLC similarly entered with a new stake of approximately $68,000. Icon Advisers Inc. Co. significantly boosted its holdings by 197.8% during the same period, now owning 115,889 shares valued at $1,179,000. Moreover, Canada Life Assurance Co. increased its stake by 21.8%, holding 141,682 shares valued at $1,523,000. Overall, institutional investors now control 28.72% of the company’s stock.
About Goldman Sachs BDC
Goldman Sachs BDC, Inc. is an externally managed, closed-end, non-diversified management investment company categorized as a business development company under the U.S. Investment Company Act of 1940. The firm’s primary objective is to generate current income and capital appreciation through investments in U.S. middle-market companies. It typically invests in senior secured loans, mezzanine debt, and preferred equity, while also engaging in common equity investments to a lesser extent. The company focuses on sponsor-backed transactions and special-situation financings, leveraging the expertise of Goldman Sachs Asset Management’s Private Credit Group.
As the financial landscape continues to evolve, Goldman Sachs BDC’s significant dividend increase reflects an assertive strategy to enhance shareholder value, while its strong institutional backing indicates confidence among investors in its operational sustainability and growth potential.
