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

Key Points

• Gladstone Investment declared a monthly dividend of $0.08 per share payable April 30 to shareholders of record April 24, implying an annualized yield of about 6.3%.
• The dividend's sustainability is in question — the current payout ratio is 91.4%, and analysts expect future earnings that would push the payout ratio to roughly 102.1%, suggesting the dividend may not be fully covered if earnings decline.
• The stock trades around $15.14 with a market cap near $603M and a P/E of about 4.9; the company recently missed quarterly EPS estimates and carries a consensus analyst rating of "Hold" (one Buy, four Holds).

Gladstone Investment Corporation (NASDAQ:GAIN - Get Free Report) announced a monthly dividend on Tuesday, April 14th. Investors of record on Friday, April 24th will be given a dividend of 0.08 per share by the investment management company on Thursday, April 30th. This represents a c) dividend on an annualized basis and a dividend yield of 6.3%. The ex-dividend date of this dividend is Friday, April 24th.

Gladstone Investment has raised its dividend by an average of 0.1%per year 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 tumble. Equities 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 Price Performance

NASDAQ GAIN opened at $15.14 on Wednesday. The company's 50 day simple moving average is $14.09 and its 200 day simple moving average is $13.95. Gladstone Investment has a 12 month low of $13.11 and a 12 month high of $15.34. 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 (NASDAQ:GAIN - Get Free Report) last released its earnings results on Tuesday, February 3rd. The investment management company reported $0.21 EPS for the quarter, missing analysts' consensus estimates of $0.24 by ($0.03). Gladstone Investment had a return on equity of 6.77% and a net margin of 118.55%.The business had revenue of $25.06 million during the quarter, compared to the consensus estimate of $25.83 million. On average, analysts anticipate that Gladstone Investment will post 0.96 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. Zacks Research upgraded shares of Gladstone Investment from a "strong sell" rating to a "hold" rating in a report on Friday, March 6th. Wall Street Zen upgraded shares of Gladstone Investment from a "sell" rating to a "hold" rating in a report on Saturday, February 7th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Gladstone Investment in a report on Friday, March 27th. Finally, B. Riley Financial reiterated a "neutral" rating on shares of Gladstone Investment in a report on Monday, February 9th. One investment analyst has rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, Gladstone Investment presently has a consensus rating of "Hold".

Gladstone Investment Company Profile

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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