GBDC vs PFLT: Which BDC is the Better Dividend Buy?
A side-by-side comparison of Golub Capital BDC, Inc. (GBDC) and PennantPark Floating Rate Capital Ltd. (PFLT) — dividend yield, NAV premium/discount, market cap, and price-to-NAV valuation.
Ready to Trade GBDC or PFLT?
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.
GBDC vs PFLT: Key Metrics Head-to-Head
| Metric | GBDC | PFLT | Edge |
|---|---|---|---|
| Dividend Yield | 11.03% | 16.5% | PFLT |
| Premium / Discount to NAV | -14.08% | -26.77% | GBDC |
| Market Capitalization | $3.2B | $0.45B | GBDC |
| Trailing Stock Price | $13.06 | $7.25 | — |
| Net Asset Value (NAV) | $15.2 | $9.9 | — |
| Price vs NAV (Valuation) | Discount | Discount | GBDC |
| Dividend Frequency | Quarterly | Quarterly | — |
| Leverage Ratio | 1.2x | 1.2x | Tie |
About GBDC — Golub Capital BDC, Inc.
Golub Capital BDC is a middle-market lending BDC that focuses primarily on first lien senior secured loans. GBDC is externally managed by Golub Capital, a seasoned middle-market credit manager with over $60 billion in capital under management. The company targets companies with EBITDA between $5 million and $50 million and emphasizes strong underwriting standards and portfolio diversification.
About PFLT — PennantPark Floating Rate Capital Ltd.
PennantPark Floating Rate Capital Ltd. is an externally managed BDC advised by PennantPark Investment Advisers, focused on floating-rate senior secured loans to U.S. middle-market companies. PFLT is designed for an interest-rate-sensitive environment, with a portfolio of predominantly first lien floating-rate instruments that reset with benchmark rates. The BDC targets companies with EBITDA between $5 million and $25 million.
How to Choose Between GBDC and PFLT
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 GBDC and PFLT 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.