Gladstone Capital Corporation (NASDAQ: GLAD) functions as a business development company (BDC) focusing on debt and equity investments in lower middle-market companies. Investors often gravitate toward it for its high dividend yields and regular monthly distribution schedule. Nevertheless, investing in BDCs carries inherent credit risks tied to portfolio company performance, economic cycles, and floating-rate debt exposure. Reviewing its net asset value, non-accrual loan rates, and professional analyst ratings is essential before deploying capital.