Snag This Bargain 7.3% Yield Dividend Stock Even Cheaper Than Chairman Golub Did

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 3, Golub Capital BDC Incorporated's Chairman, Lawrence E. Golub, invested $89,100.00 into 5,000 shares of GBDC, for a cost per share of $17.82. 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.

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In trading on Monday, bargain hunters could buy shares of Golub Capital BDC Incorporated ( GBDC) and achieve a cost basis 2.2% cheaper than Golub, with shares changing hands as low as $17.43 per share. Golub Capital BDC Incorporated shares are currently trading down about 0.6% 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 $15.57 per share, with $19.38 as the 52 week high point — that compares with a last trade of $17.43. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
09/03/2014 Lawrence E. Golub Chairman 5,000 $17.82 $89,100.00
09/03/2014 David Golub Chief Executive Officer 5,000 $17.82 $89,100.00

The current annualized dividend paid by Golub Capital BDC Incorporated is $1.28/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 09/12/2014. 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. 7.3% annualized yield is likely to continue.

GBDC+Dividend+History+Chart

According to the ETF Finder at ETF Channel, GBDC makes up 4.42% of the BDC Income ETF ( BIZD) which is trading higher by about 0.1% on the day Monday.

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