GSBD dividend yield calculator – Goldman Sachs BDC Offers 13% Dividend Yield, But Poor Underwriting Quality Discourages Investment
June 27, 2023
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Goldman ($NYSE:GSBD) Sachs BDC is a publicly traded business development company, operating as a closed-end investment fund listed on the New York Stock Exchange. In the past, it has offered investors a 13% dividend yield, making it an attractive prospect for those seeking to maximize returns.
However, the company has recently been facing criticism over its poor underwriting quality, which can often lead to losses for investors. Underwriting quality refers to the ability of an organization or company to accurately assess the risk associated with a particular investment and allocate capital appropriately. Goldman Sachs BDC has been found to have insufficient underwriting standards, leading to losses on certain investments and devaluation of its stock. This has caused many investors to be wary of investing in the company, particularly when other investment options offer comparable yields with less risk. Despite its high dividend yield, the poor underwriting quality offered by Goldman Sachs BDC makes it a less attractive option to potential investors. This is especially true when compared to other investment options that may provide similar returns with less risk. As such, many investors are discouraged from investing in the company due to its poor underwriting quality, even if the 13% dividend yield is appealing.
Dividends – GSBD dividend yield calculator
Goldman Sachs BDC has been offering a steady, high dividend yield of 13% for the past three years. This makes it an attractive option for investors seeking dividend-yielding stocks.
However, the firm’s underwriting quality has been poor and this has led to some investors being discouraged from investing in the company. The dividend per share issued by Goldman Sachs BDC over the last three years was 1.8 USD. In 2021, this figure is expected to rise to 10.69%, 10.05% and 9.35% in 2022 and 2023, respectively. This gives an average dividend yield of 10.03%. Despite the high rate of return, investors should be aware of the poor underwriting quality before making any investments. With a high dividend yield, it can be a viable option for investors seeking to earn a steady income.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for GSBD. More…
| Total Revenues | Net Income | Net Margin |
| 50.15 | 42.91 | 85.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for GSBD. More…
| Operations | Investing | Financing |
| 20.39 | – | -4.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for GSBD. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.61k | 2.03k | 14.44 |
Key Ratios Snapshot
Some of the financial key ratios for GSBD are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.4% | – | – |
| FCF Margin | ROE | ROA |
| 40.7% | 1.9% | 0.8% |
Analysis – GSBD Stock Fair Value
At GoodWhale, we have conducted an analysis of GOLDMAN SACHS BDC’s wellbeing. Our proprietary Valuation Line has revealed that the intrinsic value of GOLDMAN SACHS BDC share is around $17.1. Currently, the price of GOLDMAN SACHS BDC stock is being traded at $14.1, which is a fair price that is undervalued by 17.4%. This provides investors with an opportunity to purchase a quality stock at a discounted price. We suggest taking advantage of this opportunity before the market corrects itself and the stock price rises to its intrinsic value. More…
Peers
Portman Ridge Finance Corp, Great Elm Capital Corp, Crescent Capital BDC Inc are all competitors in the same industry.
– Portman Ridge Finance Corp ($NASDAQ:PTMN)
Portman Ridge Finance Corp is a publicly traded company with a market capitalization of 217.16 million as of 2022. The company has a negative return on equity of 1.97%. Portman Ridge Finance Corp is a specialty finance company that provides financing solutions to public and private companies. The company was founded in 2010 and is headquartered in Boston, Massachusetts.
– Great Elm Capital Corp ($NASDAQ:GECC)
Great Elm Capital Corp’s market cap is 77.16M as of 2022. The company’s ROE is -19.61%. Great Elm Capital Corp is a holding company that operates through its subsidiaries in the United States. The company’s primary business activities include investment banking, merchant banking, and asset management.
– Crescent Capital BDC Inc ($NASDAQ:CCAP)
Crescent Capital BDC Inc is a business development company specializing in leveraged and mezzanine debt financing, senior and subordinated debt financing, and equity financing. It also invests in distressed debt, special situation investments, and middle market companies. The company was founded in 1991 and is headquartered in Los Angeles, California.
Summary
Goldman Sachs BDC (Business Development Corporation) is a publicly traded investment company that provides debt and equity capital to middle-market companies. Investors should be aware that despite its high dividend yield, Goldman Sachs BDC has been criticized for its underwriting practices. Investment analysis of Goldman Sachs BDC suggests that the dividend yield is not enough to make up for the risks associated with the company’s questionable underwriting. Investors should conduct thorough due diligence before investing in this company and be aware of the risks it carries.
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