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

Key Points

• Prospect Capital announced a monthly dividend of $0.035 per share for shareholders of record on Aug. 27, payable Sept. 17, representing a 16.8% annualized yield.
• The dividend may be unsustainable: Prospect has a payout ratio of 114.9%, posted quarterly EPS of $0.16 (beating estimates) but missed revenue, and the stock is down 9.3% with a consensus analyst rating of "Sell" and a $2.50 price target.

Prospect Capital Corporation (NASDAQ:PSEC - Get Free Report) announced a monthly dividend on Thursday, May 7th. Stockholders of record on Thursday, August 27th will be given a dividend of 0.035 per share by the financial services provider on Thursday, September 17th. This represents a c) dividend on an annualized basis and a dividend yield of 16.8%. The ex-dividend date of this dividend is Thursday, August 27th.

Prospect Capital has decreased its dividend by an average of 0.0%annually over the last three years. Prospect Capital has a 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 9.3%

PSEC opened at $2.50 on Friday. The business's 50-day simple moving average is $2.67 and its 200-day simple moving average is $2.70. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.74 and a current ratio of 0.74. Prospect Capital has a one year low of $2.45 and a one year high of $3.77. The stock has a market capitalization of $1.21 billion, a P/E ratio of -3.08 and a beta of 0.82.

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

Analysts Set New Price Targets

A number of analysts have recently commented on the company. Weiss Ratings reiterated a "sell (d)" rating on shares of Prospect Capital in a research report on Tuesday, April 21st. Wall Street Zen cut Prospect Capital from a "buy" rating to a "hold" rating in a research report on Saturday, February 14th. Two research analysts have rated the stock with a Sell rating, According to MarketBeat, the stock has an average rating of "Sell" and a consensus price target of $2.50.

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.

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