GECC vs PNNT: Which BDC is the Better Dividend Buy?
A side-by-side comparison of Great Elm Capital Corp. (GECC) and PennantPark Investment Corporation (PNNT) — dividend yield, NAV premium/discount, market cap, and price-to-NAV valuation.
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GECC vs PNNT: Key Metrics Head-to-Head
| Metric | GECC | PNNT | Edge |
|---|---|---|---|
| Dividend Yield | 24.16% | 28.66% | PNNT |
| Premium / Discount to NAV | -55.87% | -52.82% | PNNT |
| Market Capitalization | $0.08B | $0.3B | PNNT |
| Trailing Stock Price | $5.34 | $3.35 | — |
| Net Asset Value (NAV) | $12.1 | $7.1 | — |
| Price vs NAV (Valuation) | Discount | Discount | PNNT |
| Dividend Frequency | Quarterly | Quarterly | — |
| Leverage Ratio | 1.28x | 1.26x | PNNT |
About GECC — Great Elm Capital Corp.
Great Elm Capital Corp. is an externally managed BDC focused on investing in senior secured and mezzanine debt of middle-market companies. GECC seeks to generate current income with a portfolio that includes senior secured loans, mezzanine instruments, and selected unsecured debt positions. The BDC is externally managed by Great Elm Capital Management and targets borrowers with EBITDA between $3 million and $25 million.
About PNNT — PennantPark Investment Corporation
PennantPark Investment Corporation is a BDC that originates and acquires senior secured loans, mezzanine debt, and equity investments in middle-market companies. PNNT, the predecessor vehicle to PFLT, retains a diversified portfolio that includes second lien loans, subordinated debt, and selected equity co-investments. The BDC is externally managed by PennantPark Investment Advisers and targets companies with EBITDA between $5 million and $25 million.
How to Choose Between GECC and PNNT
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 GECC and PNNT 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.
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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.