Gladstone Investment Corporation (NASDAQ:GAIN) Declares Monthly Dividend of $0.08

Key Points

• Gladstone Investment declared a monthly dividend of $0.08 per share, payable December 31 to shareholders of record on December 21. The dividend annualizes to $0.96 per share and represents a 6.3% yield.
• The dividend is currently covered by earnings, but the payout ratio is high at 91.4%; based on expected annual earnings of $1.00 per share, the forward payout ratio would rise to 96.0%.
• Gladstone Investment’s latest quarterly results exceeded expectations, with earnings of $0.26 per share versus the $0.22 consensus estimate and revenue of $28.36 million versus the $25.75 million forecast.

Gladstone Investment Corporation (NASDAQ:GAIN - Get Free Report) declared a monthly dividend on Tuesday, October 13th. Stockholders of record on Monday, December 21st will be paid a dividend of $0.08 per share by the investment management company on Thursday, December 31st. This represents a $0.96 annualized dividend and a dividend yield of 6.3%. The ex-dividend date is Monday, December 21st.

Gladstone Investment has raised its dividend payment by an average of 0.1% annually over the last three years. Gladstone Investment has a payout ratio of 91.4% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Analysts expect Gladstone Investment to earn $1.00 per share next year, which means the company should continue to be able to cover its $0.96 annual dividend with an expected future payout ratio of 96.0%.

Gladstone Investment Price Performance

NASDAQ:GAIN opened at $15.32 on Wednesday. The firm has a 50-day moving average of $16.06 and a two-hundred day moving average of $15.85. The stock has a market cap of $610.04 million, a P/E ratio of 3.67 and a beta of 0.76. Gladstone Investment has a 1-year low of $13.11 and a 1-year high of $17.14.

Gladstone Investment (NASDAQ:GAIN - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The investment management company reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.04. The company had revenue of $28.36 million during the quarter, compared to analyst estimates of $25.75 million. Gladstone Investment had a net margin of 158.95% and a return on equity of 5.90%. As a group, equities analysts expect that Gladstone Investment will post 1.00 earnings per share for the current year.

Hedge Funds Weigh In On Gladstone Investment

A number of institutional investors and hedge funds have recently added to or reduced their stakes in GAIN. Integrated Wealth Concepts LLC acquired a new position in Gladstone Investment in the second quarter worth approximately $123,000. Van ECK Associates Corp lifted its position in shares of Gladstone Investment by 35.8% during the 2nd quarter. Van ECK Associates Corp now owns 804,098 shares of the investment management company's stock valued at $12,431,000 after acquiring an additional 212,170 shares during the last quarter. Confluence Investment Management LLC acquired a new stake in shares of Gladstone Investment during the 2nd quarter valued at $572,000. Cetera Investment Advisers lifted its position in shares of Gladstone Investment by 2.3% during the 1st quarter. Cetera Investment Advisers now owns 31,653 shares of the investment management company's stock valued at $449,000 after acquiring an additional 717 shares during the last quarter. Finally, Greenwood Gearhart LLC bought a new stake in shares of Gladstone Investment during the 1st quarter worth $254,000. 11.85% of the stock is owned by institutional investors.

About Gladstone Investment

Gladstone Investment Corporation NASDAQ: GAIN is an externally managed business development company that invests in established lower-middle-market businesses in the United States. The company seeks to provide capital to privately held companies that may have limited access to traditional financing.

Gladstone Investment primarily invests through secured and unsecured debt, subordinated debt and equity securities. Its investment activities support transactions such as management buyouts, recapitalizations, acquisitions and growth initiatives.

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