Prospect Capital Corporation (NASDAQ:PSEC) Announces $0.04 Monthly Dividend

Key Points

• Prospect Capital declared a monthly dividend of $0.035 per share (record June 26, payable July 22), which implies an annualized yield of about 16.8% at recent prices.
• The company reported EPS of $0.16 (beats ~$0.11) but missed revenue expectations ($150.1M vs. ~$163.2M) and logged a negative net margin (~-39.6%) with a payout ratio of 114.9%, signaling the dividend is not currently covered by earnings and may be unsustainable.

Prospect Capital Corporation (NASDAQ:PSEC - Get Free Report) announced a monthly dividend on Thursday, May 7th. Shareholders of record on Friday, June 26th will be paid a dividend of 0.035 per share by the financial services provider on Wednesday, July 22nd. This represents a c) annualized dividend and a yield of 16.8%. The ex-dividend date of this dividend is Friday, June 26th.

Prospect Capital has decreased its dividend by an average of 0.0%per year over the last three years. Prospect Capital has a payout ratio of 114.9% indicating that 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 9.3%

Shares of NASDAQ:PSEC opened at $2.50 on Friday. The company has a quick ratio of 0.74, a current ratio of 0.74 and a debt-to-equity ratio of 0.62. The business has a fifty day moving average of $2.67 and a two-hundred day moving average of $2.70. The stock has a market cap of $1.21 billion, a P/E ratio of -3.08 and a beta of 0.82. Prospect Capital has a 52-week low of $2.45 and a 52-week high of $3.77.

Prospect Capital (NASDAQ:PSEC - Get Free Report) last issued its earnings results on Thursday, May 7th. The financial services provider reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.05. The company had revenue of $150.07 million during the quarter, compared to analysts' expectations of $163.23 million. Prospect Capital had a positive return on equity of 11.91% and a negative net margin of 39.56%.

Trending Headlines about Prospect Capital

Here are the key news stories impacting Prospect Capital this week:

• Positive Sentiment: Quarterly EPS / NII per share beat analysts: Prospect reported NII per share of $0.16 (vs. consensus ~$0.11), a beat that supports near-term income credibility. Quarterly Press Release
• Positive Sentiment: Company declared a monthly dividend of $0.035/share (annualized yield ~15.3%) with a sequence of ex-dividend/record/payment dates through Sept — continuity of monthly distributions typically attracts income-focused investors. Dividend & Results Release
• Neutral Sentiment: Company scheduled a conference call to discuss results (May 8), which will provide management commentary and could move shares depending on tone and forward guidance. Earnings Call Notice
• Negative Sentiment: Revenue missed expectations: reported revenue $150.07M vs. consensus ~$163.23M — a notable shortfall that can damp investor enthusiasm. Quarterly Press Release
• Negative Sentiment: Underlying income trends weakened: NII declined quarter-over-quarter (NII $78.5M vs. $90.9M prior quarter; NII per share down from $0.19 to $0.16) and the company reported a negative net margin (~-39.6%), raising questions about distribution sustainability despite the high yield. Results Release

Prospect Capital Company Profile

Prospect Capital Corporation is a publicly traded business development company listed on the Nasdaq stock exchange that specializes in providing private debt and equity financing solutions to middle-market companies across the United States. Structured as a closed-end, non-diversified management investment company under the Investment Company Act of 1940, Prospect Capital offers investors access to a diversified portfolio of senior secured loans, subordinated debt and selective equity interests in privately held businesses.

Since its founding in 2004, Prospect Capital has focused on tailoring financing structures to meet the growth, acquisition and recapitalization needs of its portfolio companies.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.