Gladstone Capital Corporation (NASDAQ:GLAD) Announces Monthly Dividend of $0.15

Key Points

• Gladstone Capital declared a $0.15 monthly dividend per share, payable October 30 to shareholders of record on October 23. The annualized dividend is $1.80, representing a 9.5% yield.
• The dividend has been increased annually for four consecutive years, but the payout ratio is high at 89.6%; analysts expect a roughly 90.9% payout ratio next year.
• Gladstone Capital shares opened at $19.01, down 0.3%, while the company’s latest quarterly earnings of $0.49 per share narrowly exceeded analyst estimates.

Gladstone Capital Corporation (NASDAQ:GLAD - Get Free Report) declared a monthly dividend on Tuesday, October 13th. Stockholders of record on Friday, October 23rd will be paid a dividend of $0.15 per share by the investment management company on Friday, October 30th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 9.5%. The ex-dividend date is Friday, October 23rd.

Gladstone Capital has raised its dividend payment by an average of 0.1% per year over the last three years and has raised its dividend annually for the last 4 consecutive years. Gladstone Capital has a payout ratio of 89.6% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Analysts expect Gladstone Capital to earn $1.98 per share next year, which means the company should continue to be able to cover its $1.80 annual dividend with an expected future payout ratio of 90.9%.

Gladstone Capital Stock Down 0.3%

Shares of NASDAQ:GLAD opened at $19.01 on Wednesday. Gladstone Capital has a 52-week low of $16.54 and a 52-week high of $21.73. The stock has a market cap of $429.44 million, a price-to-earnings ratio of 9.23 and a beta of 0.94. The business has a 50-day moving average price of $19.51 and a 200-day moving average price of $19.16.

Gladstone Capital (NASDAQ:GLAD - Get Free Report) last released its earnings results on Tuesday, August 4th. The investment management company reported $0.49 EPS for the quarter, topping analysts' consensus estimates of $0.48 by $0.01. The firm had revenue of $24.50 million during the quarter, compared to the consensus estimate of $24.90 million. Gladstone Capital had a return on equity of 9.67% and a net margin of 50.48%. As a group, equities analysts anticipate that Gladstone Capital will post 1.99 EPS for the current fiscal year.

Institutional Investors Weigh In On Gladstone Capital

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Sunbelt Securities Inc. purchased a new stake in shares of Gladstone Capital in the first quarter worth about $142,000. Entropy Technologies LP acquired a new stake in Gladstone Capital during the first quarter worth about $179,000. Miller Global Investments LLC acquired a new stake in Gladstone Capital during the second quarter worth about $311,000. Finally, B. Riley Wealth Advisors Inc. grew its holdings in Gladstone Capital by 66.0% during the third quarter. B. Riley Wealth Advisors Inc. now owns 225,027 shares of the investment management company's stock worth $4,327,000 after acquiring an additional 89,446 shares during the period. 10.72% of the stock is owned by institutional investors and hedge funds.

About Gladstone Capital

Gladstone Capital Corporation is a business development company that provides financing to privately held, lower middle-market businesses in the United States. The company seeks to support established companies across a range of industries, typically working with businesses that may require flexible capital solutions to fund growth, acquisitions, recapitalizations, refinancings, or other strategic initiatives.

Its investment portfolio primarily consists of secured debt investments, including first-lien and second-lien loans, as well as subordinated debt and equity investments.

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