Prospect Capital Corporation Declares Monthly Dividend of $0.05 (NASDAQ:PSEC)

Key Points

• Prospect Capital Corporation declared a monthly dividend of $0.05, to be paid on November 18th to stockholders of record as of October 29th, reflecting an annualized yield of 18.9%.
• The company's dividend payout ratio stands at 114.9%, indicating it is financing its dividend payments through its balance sheet rather than earnings.
• Wall Street analysts have a consensus rating of "Sell" for Prospect Capital, with Wells Fargo lowering its target price from $3.00 to $2.50.

Prospect Capital Corporation (NASDAQ:PSEC - Get Free Report) announced a monthly dividend on Tuesday, August 26th. Stockholders of record on Wednesday, October 29th will be paid a dividend of 0.045 per share by the financial services provider on Tuesday, November 18th. This represents a c) dividend on an annualized basis and a dividend yield of 18.9%. The ex-dividend date is Wednesday, October 29th.

Prospect Capital has a dividend payout ratio of 114.9% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments.

Prospect Capital Stock Down 1.6%

NASDAQ PSEC traded down $0.05 during trading on Thursday, reaching $2.86. 1,148,591 shares of the company's stock were exchanged, compared to its average volume of 3,101,329. Prospect Capital has a 1 year low of $2.73 and a 1 year high of $5.57. The stock has a market cap of $1.27 billion, a P/E ratio of -2.13 and a beta of 0.85. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.83 and a current ratio of 0.83. The company has a 50 day moving average price of $3.13 and a two-hundred day moving average price of $3.58.

Prospect Capital (NASDAQ:PSEC - Get Free Report) last announced its earnings results on Tuesday, August 26th. The financial services provider reported $0.17 earnings per share for the quarter, beating the consensus estimate of $0.13 by $0.04. The company had revenue of $166.95 million for the quarter, compared to the consensus estimate of $167.08 million. Prospect Capital had a positive return on equity of 11.77% and a negative net margin of 69.68%.

Wall Street Analysts Forecast Growth

Separately, Wells Fargo & Company decreased their target price on Prospect Capital from $3.00 to $2.50 and set an "underweight" rating for the company in a research report on Thursday. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the company presently has a consensus rating of "Sell" and a consensus price target of $2.50.

About Prospect Capital

Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development, capital expenditures and subordinated debt tranches of collateralized loan obligations, cash flow term loans, market place lending and bridge transactions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.