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

Key Points

• Gladstone Investment Corporation announced a monthly dividend of $0.08 per share, payable on September 30 to shareholders of record on September 21. The dividend implies an annualized yield of about 5.8%.
• The company’s dividend appears fairly well covered for now, with a 91.4% payout ratio, but analysts expect future earnings may not fully support the current annual dividend. Forecast EPS of $0.92 would leave the payout ratio above 100%.
• Shares of NASDAQ: GAIN were up slightly and traded around $16.52, while the stock continues to show a low valuation with a 3.52 P/E ratio and a market cap of about $657.8 million.

Gladstone Investment Corporation (NASDAQ:GAIN - Get Free Report) announced a monthly dividend on Tuesday, July 14th. Stockholders of record on Monday, September 21st will be paid a dividend of 0.08 per share by the investment management company on Wednesday, September 30th. This represents a c) dividend on an annualized basis and a dividend yield of 5.8%. The ex-dividend date of this dividend is Monday, September 21st.

Gladstone Investment has raised its dividend payment by an average of 0.1%per year over the last three years. Gladstone Investment has a payout ratio of 91.4% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. 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 NASDAQ GAIN opened at $16.52 on Wednesday. Gladstone Investment has a 12 month low of $13.11 and a 12 month high of $17.14. The firm has a market capitalization of $657.83 million, a price-to-earnings ratio of 3.52 and a beta of 0.78. The business has a 50-day moving average of $15.76 and a 200-day 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 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.02). Gladstone Investment had a return on equity of 6.05% and a net margin of 186.47%.The company had revenue of $25.19 million during the quarter, compared to the consensus estimate of $25.80 million. On average, analysts predict that Gladstone Investment will post 0.91 earnings per share for the current 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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