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

Key Points

• Gladstone Investment Corporation announced a monthly dividend of $0.08 per share, payable on August 31 to shareholders of record on August 18. The stock’s dividend yield is about 5.8%.
• The company’s dividend appears relatively tight: its payout ratio is 91.4%, and analysts expect earnings next year of $0.92 per share versus an annual dividend of $0.96, implying a potential 104.3% payout ratio.
• Shares of GAIN were trading slightly higher, while recent analyst sentiment was mixed but leaned positive, with an average rating of Moderate Buy and an average price target of $16.75.

Gladstone Investment Corporation (NASDAQ:GAIN - Get Free Report) announced a monthly dividend on Tuesday, July 14th. Stockholders of record on Tuesday, August 18th will be given a dividend of 0.08 per share by the investment management company on Monday, August 31st. This represents a c) dividend on an annualized basis and a dividend yield of 5.8%. The ex-dividend date is Tuesday, August 18th.

Gladstone Investment has raised its dividend payment by an average of 0.1%per year over the last three years. 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. Equities research analysts expect Gladstone Investment to earn $0.92 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 104.3%.

Gladstone Investment Trading Up 0.5%

Shares of GAIN stock opened at $16.52 on Wednesday. The stock has a market cap of $657.83 million, a P/E ratio of 3.52 and a beta of 0.78. Gladstone Investment has a 1 year low of $13.11 and a 1 year high of $17.14. The stock has a 50 day simple moving average of $15.76 and a 200 day simple moving average of $14.83.

Gladstone Investment (NASDAQ:GAIN - Get Free Report) last posted its quarterly earnings data on Tuesday, May 12th. The investment management company reported $0.20 EPS for the quarter, missing analysts' consensus estimates of $0.22 by ($0.02). The company had revenue of $25.19 million for the quarter, compared to the consensus estimate of $25.80 million. Gladstone Investment had a return on equity of 6.05% and a net margin of 186.47%. Analysts forecast that Gladstone Investment will post 0.91 EPS for the current year.

Analysts Set New Price Targets

A number of brokerages recently commented on GAIN. Wall Street Zen cut Gladstone Investment from a "hold" rating to a "sell" rating in a research report on Saturday, May 16th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Gladstone Investment in a research report on Friday, March 27th. B. Riley Financial upgraded shares of Gladstone Investment from a "neutral" rating to a "buy" rating and increased their price objective for the stock from $14.50 to $16.50 in a research note on Thursday, May 14th. Finally, Oppenheimer raised their target price on shares of Gladstone Investment from $15.00 to $17.00 and gave the company an "outperform" rating in a report on Thursday, May 14th. Three equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, Gladstone Investment has an average rating of "Moderate Buy" and an average price target of $16.75.

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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