Gladstone Investment trades at a premium of 8% and has a dividend coverage of 100%. Meanwhile, the sector median P/NAV is 0.90x, and the average base dividend coverage is 102%. This does not sound attractive at all.
Gladstone Investment Corporation (GAIN) offers stable yields and a diversified portfolio, making it an attractive BDC for income-focused investors. GAINZ, one of GAIN's baby bonds, is recommended as a "Buy" due to its yield above 7% and price below par, offering potential capital gains. GAIN's moderate leverage, strong asset coverage ratio, and solid 5-year NAV return of 16.79% support the investment thesis for GAINZ.
Gladstone Investment (NASDAQ:GAIN ) Q1 2026 Earnings Conference Call August 13, 2025 8:30 AM ET Company Participants Catherine Gerkis - Director of Investor Relations & ESG David A. R. Dullum - President David John Gladstone - Chairman & CEO Taylor Ritchie - CFO & Treasurer Conference Call Participants Erik Edward Zwick - Lucid Capital Markets, LLC, Research Division Mickey Max Schleien - Ladenburg Thalmann & Co. Inc., Research Division Sean-Paul Aaron Adams - B.
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Gladstone Investment Corporation is a business development company that focuses on investments in lower middle market and mature stage companies. It primarily engages in buyouts, refinancing of existing debt, and offers a range of debt and equity financing solutions. The company has a clear preference for investing in the manufacturing, consumer products, and business/consumer services sectors. Target companies are generally small to mid-sized, based in the United States, with revenues between $20 million and $100 million and EBITDA from $3 million to $20 million. Gladstone Investment Corporation aims for a minority equity ownership but is also open to taking a majority stake and often seeks a board seat in its portfolio companies. Its investment horizon is typically around seven years, looking to exit via sale or recapitalization, initial public offering, or sale to a third party.
Includes senior loans, senior term loans, lines of credit, and senior notes. These are prioritized debt instruments that offer financing solutions to companies looking to refinance existing obligations or fund their operations and growth initiatives.
Encompasses senior subordinated loans and senior subordinated notes, which are a step below senior debts in terms of repayment priority but offer a higher yield, catering to companies needing more flexible debt structures.
Includes subordinated notes and mezzanine loans, representing even riskier debt options with potentially higher returns, used typically for growth financing under conditions of higher financial leverage.
This represents equity investments in small and mid-sized companies, showing Gladstone's investment in company ownership and potential influence on company management and operations.
Offer the capability to invest in a company's growth potential through instruments that provide the right, but not the obligation, to buy equity at a predetermined price, allowing for flexible and strategic equity participation in portfolio companies.