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

Key Points

• Gladstone Investment Corporation announced a monthly dividend of $0.08 per share, with stockholders of record set to receive it on December 31st, resulting in an annualized yield of 6.9%.
• The company has a payout ratio of 91.4%, indicating that its current earnings cover the dividend, but future earnings may not sustain this rate.
• Gladstone Investment's stock opened at $13.94, with a market capitalization of $532.77 million, and has seen a 2.0% increase recently.

Gladstone Investment Corporation (NASDAQ:GAIN - Get Free Report) announced a monthly dividend on Tuesday, October 14th. Stockholders of record on Monday, December 22nd will be given a dividend of 0.08 per share by the investment management company on Wednesday, December 31st. This represents a c) annualized dividend and a dividend yield of 6.9%. The ex-dividend date of this dividend is Monday, December 22nd.

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 decline. 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 Up 2.0%

Shares of Gladstone Investment stock opened at $13.94 on Wednesday. Gladstone Investment has a 52 week low of $11.42 and a 52 week high of $15.34. The business has a 50 day moving average price of $14.02 and a 200-day moving average price 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 (NASDAQ:GAIN - Get Free Report) last announced its quarterly earnings results on Tuesday, August 12th. The investment management company reported $0.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.01. Gladstone Investment had a return on equity of 7.33% and a net margin of 83.78%.The business had revenue of $23.54 million during the quarter, compared to the consensus estimate of $23.87 million. As a group, research analysts anticipate that Gladstone Investment will post 0.96 EPS for the current year.

Hedge Funds Weigh In On Gladstone Investment

Several large investors have recently modified their holdings of the business. State of Wyoming raised its position in shares of Gladstone Investment by 204.3% in the second quarter. State of Wyoming now owns 12,033 shares of the investment management company's stock valued at $172,000 after purchasing an additional 8,079 shares during the period. CANADA LIFE ASSURANCE Co raised its holdings in Gladstone Investment by 6.1% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 37,238 shares of the investment management company's stock valued at $531,000 after acquiring an additional 2,136 shares during the period. Raymond James Financial Inc. lifted its position in shares of Gladstone Investment by 2.0% during the second quarter. Raymond James Financial Inc. now owns 40,857 shares of the investment management company's stock worth $583,000 after acquiring an additional 814 shares in the last quarter. Marshall Wace LLP bought a new position in shares of Gladstone Investment in the second quarter worth $428,000. Finally, Invesco Ltd. purchased a new position in shares of Gladstone Investment in the second quarter valued at $735,000. Hedge funds and other institutional investors own 11.85% of the company's stock.

Gladstone Investment Company Profile

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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