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

Key Points

• Gladstone Investment Corporation has declared a monthly dividend of $0.08 per share, with an annualized yield of 6.9%, payable on October 31st to investors of record as of October 24th.
• The company's current dividend payout ratio stands at 91.4%, but it is expected to exceed 100% in the upcoming fiscal year, raising concerns about sustainability.
• Research analysts have recently upgraded the stock's rating, with Zacks Research moving it from "hold" to a "strong-buy" rating, reflecting positive sentiment among analysts.

Gladstone Investment Corporation (NASDAQ:GAIN - Get Free Report) declared a monthly dividend on Tuesday, October 14th. Investors of record on Friday, October 24th will be paid a dividend of 0.08 per share by the investment management company on Friday, October 31st. This represents a c) dividend on an annualized basis and a dividend yield of 6.9%. The ex-dividend date of this dividend is Friday, October 24th.

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 fall. Research 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 Trading Up 2.0%

Shares of NASDAQ:GAIN opened at $13.94 on Wednesday. The stock has a 50 day moving average of $14.02 and a 200 day moving average of $13.98. The company has a market cap of $532.77 million, a PE ratio of 6.42 and a beta of 0.93. Gladstone Investment has a 12-month low of $11.42 and a 12-month high of $15.34.

Gladstone Investment (NASDAQ:GAIN - Get Free Report) last announced its quarterly earnings data on Tuesday, August 12th. The investment management company reported $0.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.23 by $0.01. The company had revenue of $23.54 million during the quarter, compared to the consensus estimate of $23.87 million. Gladstone Investment had a return on equity of 7.33% and a net margin of 83.78%. Equities research analysts predict that Gladstone Investment will post 0.96 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

GAIN has been the topic of a number of research analyst reports. Zacks Research raised Gladstone Investment from a "hold" rating to a "strong-buy" rating in a report on Monday. Weiss Ratings reissued a "buy (b-)" rating on shares of Gladstone Investment in a report on Wednesday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $13.50.

About Gladstone Investment

Gladstone Investment Corporation is business development company, specializes in lower middle market, mature stage, buyouts; refinancing existing debt; senior debt securities such as senior loans, senior term loans, lines of credit, and senior notes; senior subordinated debt securities such as senior subordinated loans and senior subordinated notes; junior subordinated debt securities such as subordinated notes and mezzanine loans; limited liability company interests, and warrants or options.

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