Stock Analysis: Carlyle Secured Lending

By Fredrik Arnold

Wednesday, February 22, 2023 11:17 PM EDT

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Carlyle Secured Lending Inc bears the ticker symbol CGBD, and this is my first mention of Carlyle Secured Lending for this new Viking Portfolio, nor for any of my previous seven dog of the week folios.

Carlyle Secured Lending Inc focuses on providing directly originated, financing solutions across the capital structure, with a focus on senior secured lending to middle-market companies primarily located in the United States.

Its investment objective is to generate current income and capital appreciation primarily through debt investments in U.S. middle-market companies.

For federal tax purposes the company is registered as a business development company.

Carlyle Secured Lending Inc has paid dividends since 2017 and is headquartered in New York, NY.

Three key data points gauge CGBD, or any dividend paying firm:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

CGBD Price

Carlyle Secured Lending Inc price per share was $15.29 at Wednesday’s market close. In the past year, CGBD share price increased by $1.54, or about 11%.

If CGBD stock trades in the range of $10.00 to $18.00 this next year, its recent $15.29 share price might reach $16.00 by next year. That upside estimate of $0.71 is less than half of last year’s price upside. It is also $1.10 above the median of price target estimates from five analysts tracking CGBD.

Carlyle Secured Lending's most recent quarterly dividend of $0.44 casts a forward annual yield of 11.51%.

CGBD Returns

Adding the $1.76 annual estimated

CGBD dividend to my one-year price upside estimate of $0.71 reveals a $2.47 potential gross gain estimate per share.

At Wednesday’s $15.29 closing price, a little under $1000 would buy 65 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.15 per share.

Subtract that maybe $0.15 brokerage cost from my estimated $2.47 gross gain makes a net gain of $2.32 X 65 shares = $150.80 for a 15% net gain including the 11.5% annual dividend yield.

In the next year our $1K investment in shares of Carlyle Secured Lending Inc could generate $115.10 in cash dividends. Furthermore, a single share of CGBD at Wednesday’s $15.29 price is over 7 times less than the estimated annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a proper time to buy

Carlyle Secured Lending Inc shares, based on their dividends for 2023. The current dividend from $1K invested is 7.5 times higher than the CGBD single share price. Consider yourself alerted.

Now is the time to consider CGBD shares.

All of the estimates above are speculation based on the past history of investment in shares of Carlyle Secured Lending Inc Only time and money invested in this stock will determine its future market value.

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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