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

Key Points

• Gladstone Investment declared a monthly dividend of $0.08 per share (annualized $0.96) with an ex-dividend and record date of May 20 and a payment date of May 29, implying a yield of about 6.3%.
• Dividend sustainability is a concern: the company’s payout ratio is currently 91.4%, but analysts forecast next-year EPS of $0.94, which would imply a future payout ratio of about 102.1% and potential inability to fully cover the dividend.
• Operationally, Gladstone missed the most recent quarterly EPS estimate ($0.21 vs. $0.24), and the stock trades around $15.14 with a market cap of ~$602.9M and a P/E of 4.87.

Gladstone Investment Corporation (NASDAQ:GAIN - Get Free Report) declared a monthly dividend on Tuesday, April 14th. Shareholders of record on Wednesday, May 20th will be given a dividend of 0.08 per share by the investment management company on Friday, May 29th. This represents a c) dividend on an annualized basis and a yield of 6.3%. The ex-dividend date of this dividend is Wednesday, May 20th.

Gladstone Investment has increased its dividend 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 $0.94 per share next year, which means the company may not be able to cover its $0.96 annual dividend with an expected future payout ratio of 102.1%.

Gladstone Investment Stock Performance

GAIN stock opened at $15.14 on Wednesday. The company has a market capitalization of $602.87 million, a P/E ratio of 4.87 and a beta of 0.78. Gladstone Investment has a 52-week low of $13.11 and a 52-week high of $15.34. The business has a 50-day simple moving average of $14.09 and a two-hundred day simple moving average of $13.95.

Gladstone Investment (NASDAQ:GAIN - Get Free Report) last released its quarterly earnings results on Tuesday, February 3rd. The investment management company reported $0.21 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.24 by ($0.03). The company had revenue of $25.06 million for the quarter, compared to analyst estimates of $25.83 million. Gladstone Investment had a net margin of 118.55% and a return on equity of 6.77%. As a group, sell-side analysts forecast that Gladstone Investment will post 0.96 earnings per share for the current fiscal year.

About Gladstone Investment

Gladstone Investment NASDAQ: GAIN is a publicly traded business development company (BDC) that focuses on providing debt and equity financing to U.S. middle-market companies. As an externally managed closed-end fund, Gladstone Investment seeks to generate current income and capital appreciation for its shareholders by originating senior secured debt, subordinated debt and equity investments. The firm typically targets established businesses with revenues between $10 million and $150 million, across a range of industry sectors including business services, health care, industrials and specialty manufacturing.

The company's investment strategy centers on deploying capital through first-lien and second-lien term loans, mezzanine debt and equity co-investments, often including warrants or other equity kickers.

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