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

Key Points

• Gladstone Investment declared a monthly dividend of $0.08 per share, payable June 30 to holders of record on June 23, which annualizes to $0.96 and implies a 6.3% yield.
• Dividend coverage is a concern: the current payout ratio is 91.4% (covered by earnings now), but analysts forecast $0.94 EPS next year, implying a projected payout ratio of 102.1% and potential pressure on the dividend if earnings fall.
• The stock trades near $15.14 with a market cap of $602.87M and a P/E of 4.87; analyst sentiment is largely a Hold (one Buy, four Hold) after recent upgrades from sell/strong-sell ratings.

Gladstone Investment Corporation (NASDAQ:GAIN - Get Free Report) declared a monthly dividend on Tuesday, April 14th. Stockholders of record on Tuesday, June 23rd will be paid a dividend of 0.08 per share by the investment management company on Tuesday, June 30th. This represents a c) annualized dividend and a dividend yield of 6.3%. The ex-dividend date is Tuesday, June 23rd.

Gladstone Investment has increased its dividend by an average of 0.1%annually 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 fall. 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 0.9%

Shares of NASDAQ GAIN opened at $15.14 on Wednesday. The firm has a market capitalization of $602.87 million, a PE ratio of 4.87 and a beta of 0.78. Gladstone Investment has a 1 year low of $13.11 and a 1 year high of $15.34. The firm's 50-day moving average is $14.09 and its 200-day moving average is $13.95.

Gladstone Investment (NASDAQ:GAIN - Get Free Report) last issued its earnings results on Tuesday, February 3rd. The investment management company reported $0.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.24 by ($0.03). The business had revenue of $25.06 million during the quarter, compared to the consensus estimate of $25.83 million. Gladstone Investment had a net margin of 118.55% and a return on equity of 6.77%. As a group, equities research analysts anticipate that Gladstone Investment will post 0.96 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

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