Golub Capital: Is A Dividend Cut In The Cards In 2025? (Rating Downgrade)
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Golub Capital BDC's dividend pay-out ratio has increased to 123% in 4Q24, raising concerns about potential dividend cuts in 2025. Despite a strong portfolio and improved credit profile, the high pay-out ratio suggests dividend risks, resulting in a 'Hold' rating.
February 23, 2025 | 4:00 am
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Golub Capital BDC's dividend pay-out ratio has risen to 123% in 4Q24, indicating potential dividend cuts in 2025. Despite a strong portfolio and improved credit profile, the high pay-out ratio suggests dividend risks, leading to a 'Hold' rating.
The article highlights Golub Capital BDC's high dividend pay-out ratio of 123% in 4Q24, which is unsustainable and raises the likelihood of dividend cuts in 2025. This concern is significant for investors focused on dividend income, leading to a downgrade to 'Hold'. The company's strong portfolio and improved credit profile are positive, but the dividend risk is a critical factor.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100