Pick Up This Cheap 7.0% Yield Dividend Stock Even Lower Than Director Webster IV Did

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There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on September 1, Golub Capital BDC Incorporated's Director, William M. Webster IV, invested $92,297.50 into 5,000 shares of GBDC, for a cost per share of $18.46. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money. In trading on Wednesday, bargain hunters could buy shares of Golub Capital BDC Incorporated (Symbol: GBDC) and achieve a cost basis even cheaper than Webster IV, with shares changing hands as low as $18.35 per share. Golub Capital BDC Incorporated shares are currently trading up about 0.8% on the day. The chart below shows the one year performance of GBDC shares, versus its 200 day moving average:

Golub Capital BDC Incorporated Chart

Looking at the chart above, GBDC's low point in its 52 week range is $17.34 per share, with $20.50 as the 52 week high point - that compares with a last trade of $18.43. By comparison, below is a table showing the prices at which GBDC insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
09/01/2017 William M. Webster IV Director 5,000 $18.46 $92,297.50

The current annualized dividend paid by Golub Capital BDC Incorporated is $1.28/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 09/01/2017. Below is a long-term dividend history chart for GBDC, which can be of good help in judging whether the most recent dividend with approx. 7.0% annualized yield is likely to continue.


GBDC makes up 4.64% of the BDC Income ETF (Symbol: BIZD)

Click here to find out which 9 other dividend bargains you can buy cheaper than insiders »

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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