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

Key Points

• Gladstone Capital declared a monthly dividend of $0.15 per share (annualized $1.80), payable May 29 to shareholders of record on May 20, implying a 9.7% dividend yield.
• The dividend has been raised annually for four consecutive years but carries a high payout profile — a reported payout ratio of 89.6% (expected to be ~88.7% on projected $2.03 EPS), meaning distributions are currently covered by earnings but could be at risk if profits fall.
• Gladstone reported a quarter of $0.50 EPS (beating estimates by $0.02); the stock trades around $18.56 with a 52-week range of $16.54–$29.50 and a market cap near $419 million.

Gladstone Capital Corporation (NASDAQ:GLAD - Get Free Report) announced a monthly dividend on Tuesday, April 14th. Stockholders of record on Wednesday, May 20th will be paid a dividend of 0.15 per share by the investment management company on Friday, May 29th. This represents a c) annualized dividend and a dividend yield of 9.7%. The ex-dividend date of this dividend is Wednesday, May 20th.

Gladstone Capital has increased its dividend by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 4 consecutive years. Gladstone Capital has a dividend payout ratio of 89.6% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Equities analysts expect Gladstone Capital to earn $2.03 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 88.7%.

Gladstone Capital Price Performance

Shares of GLAD opened at $18.56 on Wednesday. The company has a 50 day moving average price of $18.16 and a 200-day moving average price of $19.62. Gladstone Capital has a fifty-two week low of $16.54 and a fifty-two week high of $29.50. The stock has a market capitalization of $419.27 million, a PE ratio of 11.67 and a beta of 0.95. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.05 and a current ratio of 0.05.

Gladstone Capital (NASDAQ:GLAD - Get Free Report) last announced its quarterly earnings results on Wednesday, February 4th. The investment management company reported $0.50 earnings per share for the quarter, topping the consensus estimate of $0.48 by $0.02. Gladstone Capital had a net margin of 39.42% and a return on equity of 9.56%. The firm had revenue of $24.51 million during the quarter, compared to analysts' expectations of $24.70 million. Equities analysts predict that Gladstone Capital will post 2.03 earnings per share for the current fiscal year.

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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