Gladstone Capital: Rare Discount And Well-Covered 9.5% Yield (Downgrade)

Analyst says GLAD stock now trades at a rare discount with a well-covered 9.5% dividend, but the multiple cut may be justified.

Published on Feb. 11, 2026

Got story updates? Submit your updates here. ›

Gladstone Capital (GLAD) has been one of the author's few business development company (BDC) exceptions, but the investment has turned out to be subpar. The author discusses the GLAD stock earnings update and whether the multiple cut is justified given the rare discount and well-covered 9.5% dividend.

Why it matters

As a BDC, Gladstone Capital's performance is closely watched by investors seeking high-yield investment opportunities. The author's analysis of GLAD's current valuation and dividend coverage provides insights that could impact investor decisions.

The details

The author, a CFA charterholder with experience in financial management and policy-level work, has been following Gladstone Capital for some time. The article discusses the company's current trading discount and well-covered 9.5% dividend yield, but also suggests the multiple cut may be justified based on the author's assessment.

  • The article was published on February 11, 2026.

The players

Roberts Berzins

The author of the article, a CFA charterholder with over a decade of experience in financial management and policy-level work.

Gladstone Capital

A business development company (BDC) that has been one of the author's few exceptions, but has turned out to be a subpar investment.

Got photos? Submit your photos here. ›

The takeaway

This analysis of Gladstone Capital's current valuation and dividend coverage provides investors with insights that could impact their decisions around this high-yield BDC investment opportunity.