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

Key Points

• Gladstone Capital declared a monthly dividend of $0.15 per share, payable on August 31 to shareholders of record on August 18. The payout implies an annualized dividend yield of 9.1%.
• The company has raised its dividend annually for the last four consecutive years, though its payout ratio is relatively high at 89.6%, suggesting limited cushion if earnings weaken.
• In its latest quarter, Gladstone Capital beat earnings and revenue estimates, reporting $0.52 EPS versus $0.49 expected and revenue of $25.99 million versus $25.19 million expected.

Gladstone Capital Corporation (NASDAQ:GLAD - Get Free Report) declared a monthly dividend on Tuesday, July 14th. Shareholders of record on Tuesday, August 18th will be given a dividend of 0.15 per share by the investment management company on Monday, August 31st. This represents a c) annualized dividend and a yield of 9.1%. The ex-dividend date is Tuesday, August 18th.

Gladstone Capital has increased its dividend by an average of 0.1%annually over the last three years and has increased 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 decline. Equities research 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 0.1%

NASDAQ GLAD opened at $19.80 on Wednesday. Gladstone Capital has a 52 week low of $16.54 and a 52 week high of $29.50. The firm has a market capitalization of $447.28 million, a price-to-earnings ratio of 10.82 and a beta of 0.92. The company has a fifty day moving average of $19.27 and a two-hundred day moving average of $19.13.

Gladstone Capital (NASDAQ:GLAD - Get Free Report) last announced its earnings results on Wednesday, May 6th. The investment management company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.49 by $0.03. The business had revenue of $25.99 million for the quarter, compared to the consensus estimate of $25.19 million. Gladstone Capital had a net margin of 45.15% and a return on equity of 9.79%. Equities research analysts anticipate that Gladstone Capital will post 2.01 EPS for the current year.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the stock. Weiss Ratings upgraded shares of Gladstone Capital from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, July 2nd. B. Riley Financial reissued a "buy" rating on shares of Gladstone Capital in a research note on Friday, May 8th. Finally, Wall Street Zen upgraded Gladstone Capital from a "sell" rating to a "hold" rating in a research report on Saturday, April 11th. Two investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $21.67.

About Gladstone Capital

Gladstone Capital Corporation is a publicly traded business development company (BDC) that provides debt and equity financing solutions to U.S. lower middle-market companies. Operating under an external management agreement with Gladstone Management L.P., the firm offers senior secured loans, mezzanine debt and equity investments designed to support growth initiatives, acquisitions and recapitalizations. Through its focus on privately held businesses, Gladstone Capital seeks to construct a diversified portfolio across various industry sectors.

Since its formation in 2003, Gladstone Capital has developed a track record of working closely with management teams and business owners to meet their capital needs.

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