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

Key Points

• Gladstone Capital declared a $0.15 monthly dividend (payable June 30 to holders of record June 23), equal to $1.80 annually and a 9.7% yield.
• The dividend is largely covered but carries risk: the company’s payout ratio is about 89.6% (expected ~88.7% next year based on $2.03 EPS), and dividend growth has been minimal despite four consecutive annual raises.
• GLAD trades around $18.56 with a market cap near $419 million and a P/E of about 11.7, well below its 12‑month high of $29.50.

Gladstone Capital Corporation (NASDAQ:GLAD - Get Free Report) declared a monthly dividend on Tuesday, April 14th. Investors of record on Tuesday, June 23rd will be paid a dividend of 0.15 per share by the investment management company on Tuesday, June 30th. This represents a c) dividend on an annualized basis and a dividend yield of 9.7%. The ex-dividend date of this dividend is Tuesday, June 23rd.

Gladstone Capital has raised 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 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 $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

GLAD opened at $18.56 on Wednesday. The stock has a fifty day simple moving average of $18.16 and a two-hundred day simple moving average of $19.62. The company has a current ratio of 0.05, a quick ratio of 0.05 and a debt-to-equity ratio of 0.45. The company has a market cap of $419.27 million, a price-to-earnings ratio of 11.67 and a beta of 0.95. Gladstone Capital has a 12-month low of $16.54 and a 12-month high of $29.50.

Gladstone Capital (NASDAQ:GLAD - Get Free Report) last posted its quarterly earnings data on Wednesday, February 4th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.48 by $0.02. The business had revenue of $24.51 million during the quarter, compared to the consensus estimate of $24.70 million. Gladstone Capital had a return on equity of 9.56% and a net margin of 39.42%. Research 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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