CGBD vs NMFC: Which BDC is the Better Dividend Buy?
A side-by-side comparison of Carlyle Secured Lending, Inc. (CGBD) and New Mountain Finance Corporation (NMFC) — dividend yield, NAV premium/discount, market cap, and price-to-NAV valuation.
Ready to Trade CGBD or NMFC?
Public Disclosure: We maintain material affiliate partnerships with the trading platforms listed below and may receive compensation if you open an account through our tracking routes.
Compare BDC dividend yields side-by-side, then open a brokerage account that supports fractional shares and real-time distribution tracking.
CGBD vs NMFC: Key Metrics Head-to-Head
| Metric | CGBD | NMFC | Edge |
|---|---|---|---|
| Dividend Yield | 14.83% | 17.02% | NMFC |
| Premium / Discount to NAV | -35.49% | -40.25% | CGBD |
| Market Capitalization | $0.62B | $0.48B | CGBD |
| Trailing Stock Price | $10.45 | $7.11 | — |
| Net Asset Value (NAV) | $16.2 | $11.9 | — |
| Price vs NAV (Valuation) | Discount | Discount | CGBD |
| Dividend Frequency | Quarterly | Quarterly | — |
| Leverage Ratio | 1.21x | 1.19x | NMFC |
About CGBD — Carlyle Secured Lending, Inc.
Carlyle Secured Lending, Inc. is an externally managed BDC advised by Carlyle Global Credit Investment Management. CGBD originates and invests in senior secured first lien, unitranche, and second lien loans to U.S. middle-market companies with EBITDA between $5 million and $50 million. The portfolio is heavily weighted toward floating-rate first lien instruments, reflecting Carlyle's institutional credit underwriting discipline and global sourcing capabilities.
About NMFC — New Mountain Finance Corporation
New Mountain Finance Corporation is an externally managed BDC advised by New Mountain Capital, a New York-based investment firm. NMFC provides senior secured debt, subordinated debt, and equity co-investments to middle-market companies, with a focus on defensive sectors such as healthcare, information technology, and business services. The BDC emphasizes downside protection through structuring and conservative leverage on portfolio holdings.
How to Choose Between CGBD and NMFC
When comparing two Business Development Companies, the right choice depends on your income objective:
- Dividend yield matters most for immediate income — the higher yielder wins on cash flow, but make sure it's covered by investment income.
- NAV premium/discount matters for valuation — a discount to NAV implies you're buying assets below their accounting value, a premium implies the market expects above-average growth.
- Market cap reflects liquidity and scale — larger BDCs typically have lower borrowing costs and better portfolio diversification.
- Leverage cuts both ways — it amplifies dividend yield but increases sensitivity to credit defaults and interest rate moves.
Both CGBD and NMFC are Regulated Investment Company (RIC)-structured BDCs required to distribute at least 90% of taxable income to shareholders, which is what produces their above-average dividend yields. Use the comparison table above as a starting point, then read each full profile before making an investment decision.
Affiliate Disclosure: BusinessDevelopmentCompanies.com participates in affiliate marketing programs. We may earn a commission or referral fee when visitors click links to institutional partner platforms like eToro or Interactive Brokers. This financial support enables us to maintain real-time programmatic valuation data across our platform. Links to brokerages on this page carry the rel="sponsored nofollow noopener" attribute.
Not Investment Advice: This comparison is for educational and informational purposes only. Nothing here constitutes a recommendation, solicitation, or investment advice to buy or sell any security. Past performance does not guarantee future results. Always conduct your own due diligence and consult a licensed financial advisor. Read our full Editorial Policy and Terms of Service.