DNP Select Income Fund vs Golub Capital BDC

This page compares DNP Select Income Fund and Golub Capital BDC to illuminate each company’s business model, financial performance, and market context in a neutral, accessible manner. It explains how they operate, generate value, and relate to the broader investment landscape. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

DNP

Metric

GBDC

$3.77B

Market Cap

$3.61B

N/A

Potential Profit

8.70%

N/A

Analyst Rating

Buy

Investment Analysis

DNP Select Income Fund

DNP

Pros

DNP Select Income Fund offers a high dividend yield, currently above 7%, appealing to income-focused investors.
The fund maintains a diversified portfolio of utility sector equities and fixed-income securities, providing sector-specific exposure with some risk mitigation.
It has a long track record of consistent income generation and is managed by an experienced investment team with a focus on utilities.

Considerations

The fund's performance is highly sensitive to interest rate changes due to its significant fixed-income allocation.
Concentration in the utility sector increases vulnerability to regulatory and macroeconomic shifts affecting utilities.
The use of leverage can amplify losses and increase share price volatility during market downturns.

Golub Capital BDC

GBDC

Pros

Golub Capital BDC invests primarily in first lien senior secured loans, offering a relatively resilient credit profile and lower default risk.
The portfolio is diversified across a broad range of middle-market companies, reducing exposure to any single borrower.
It benefits from the expertise of a seasoned private credit manager with a strong track record in underwriting and portfolio management.

Considerations

As a non-diversified BDC, it faces higher concentration risk compared to more broadly diversified funds.
Its returns are sensitive to changes in interest rates, given the floating-rate nature of most loans in its portfolio.
The BDC structure may result in higher fees and expenses, which can reduce net returns to shareholders.

About The Companies

DNP Select Income Fund (DNP)

DNP Select Income Fund Inc. is a closed-end, diversified investment fund that many investors watch for its focus on income. Its primary goals are to generate current income and long-term income growth, with capital appreciation being a secondary objective. The fund primarily invests in a portfolio of equity and fixed-income securities from companies within the public utilities industry. It concentrates over 65% of its assets in firms involved in electricity, gas, or telephone services. This strategy is designed to capitalise on the characteristics often associated with the utilities sector. It's important for potential investors to remember that as with any investment, the fund's value can go down as well as up, and returns are not guaranteed. The fund is managed by Duff & Phelps Investment Management Co.

Golub Capital BDC (GBDC)

Golub Capital BDC Inc (GBDC) is a US‑listed business development company (BDC) that provides credit to middle‑market companies, primarily through senior secured and unitranche loans. Managed by Golub Capital, the company focuses on floating‑rate private credit originated to private equity‑backed firms, aiming to generate current income for shareholders. With a market capitalisation of about $3.75bn, GBDC offers exposure to private credit outside the traditional banking system, including potential yield advantages compared with plain‑vanilla bonds. Investors should be aware of interest‑rate sensitivity (many loans are floating‑rate), credit and liquidity risk, and share‑price volatility that can come from widening credit spreads or capital‑markets moves. As a BDC, it distributes a large portion of income as dividends, but payouts depend on net investment income and portfolio performance. This is educational information only, not personal advice — consider your risk tolerance and consult a financial adviser before investing.

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Which Baskets Do They Appear In?

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Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

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6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

DNP Select Income Fund vs Golub Capital BDC

Comparison Snapshot

Investment Analysis

DNP Select Income Fund

Pros

Considerations

Golub Capital BDC

Pros

Considerations

About The Companies

Which Baskets Do They Appear In?

Which Baskets Do They Appear In?

Buy DNP or GBDC in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Frequently asked questions

Comparison Snapshot

About The Companies

DNP Select Income Fund vs Golub Capital BDC

Comparison Snapshot

Investment Analysis

DNP Select Income Fund

Pros

Considerations

Golub Capital BDC

Pros

Considerations

About The Companies

Which Baskets Do They Appear In?

Which Baskets Do They Appear In?

Buy DNP or GBDC in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

DNP Select Income Fund vs TFS Financial

DNP Select Income Fund vs Federated Hermes

Federated Hermes vs Golub Capital BDC

Frequently asked questions

What is the primary difference between a closed-end fund like DNP Select Income Fund and a business development company such as Golub Capital BDC in terms of structure?

How does yield meaningfully impact the way investors compare these two stocks?

What does diversification in DNP’s portfolio imply for risk exposure compared with Golub Capital BDC’s portfolio?

Why might leverage affect DNP Select Income Fund differently from Golub Capital BDC?

What should a reader understand about ‘floating-rate’ loans in Golub Capital BDC’s portfolio?

How do sector dynamics in utilities affect DNP Select Income Fund’s performance?

In what ways do broader interest rate trends influence both stocks in this comparison?

How should an investor interpret income stability versus growth potential for these two stocks?

What are common cost considerations for each stock that could affect net returns?

Why is it important to compare both income characteristics and risk factors when evaluating these two stocks?

What does the educational disclaimer tell readers about the purpose of this page?

Comparison Snapshot

About The Companies