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

Key Points

• Gladstone Investment declared a monthly dividend of $0.08 per share, payable November 30 to shareholders of record on November 19. The payment equates to $0.96 annually and a 6.3% yield.
• The dividend is covered by earnings but has limited room for growth, with a current payout ratio of 91.4% and an expected future payout ratio of 96%.
• Shares opened at $15.32, down 0.2%, while the company’s latest quarterly results exceeded expectations with $0.26 in EPS versus the $0.22 consensus estimate.

Gladstone Investment Corporation (NASDAQ:GAIN - Get Free Report) announced a monthly dividend on Tuesday, October 13th. Shareholders of record on Thursday, November 19th will be paid a dividend of $0.08 per share by the investment management company on Monday, November 30th. This represents a $0.96 annualized dividend and a yield of 6.3%. The ex-dividend date is Thursday, November 19th.

Gladstone Investment has increased its dividend by an average of 0.1% annually over the last three years. Gladstone Investment has a dividend 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 decline. 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 Stock Down 0.2%

Shares of NASDAQ GAIN opened at $15.32 on Wednesday. The firm has a market cap of $610.04 million, a price-to-earnings ratio of 3.67 and a beta of 0.76. The company's 50-day simple moving average is $16.06 and its 200-day simple moving average is $15.85. Gladstone Investment has a 52-week low of $13.11 and a 52-week high of $17.14.

Gladstone Investment (NASDAQ:GAIN - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The investment management company reported $0.26 EPS for the quarter, topping the consensus estimate of $0.22 by $0.04. Gladstone Investment had a return on equity of 5.90% and a net margin of 158.95%. The firm had revenue of $28.36 million during the quarter, compared to analysts' expectations of $25.75 million. Equities research analysts anticipate that Gladstone Investment will post 1.00 EPS for the current fiscal year.

Institutional Trading of Gladstone Investment

Several institutional investors have recently added to or reduced their stakes in GAIN. Integrated Wealth Concepts LLC purchased a new stake in Gladstone Investment during the 2nd quarter worth about $123,000. Van ECK Associates Corp boosted its stake in shares of Gladstone Investment by 35.8% in 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 buying an additional 212,170 shares during the period. Confluence Investment Management LLC purchased a new position in shares of Gladstone Investment in the 2nd quarter valued at about $572,000. Cetera Investment Advisers boosted its stake in shares of Gladstone Investment by 2.3% in the 1st quarter. Cetera Investment Advisers now owns 31,653 shares of the investment management company's stock valued at $449,000 after buying an additional 717 shares during the period. Finally, Greenwood Gearhart LLC acquired a new position in shares of Gladstone Investment during the first quarter worth about $254,000. Institutional investors and hedge funds own 11.85% of the company's stock.

Gladstone Investment Company Profile

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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