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

Key Points

• Prospect Capital declared a monthly dividend of $0.035 per share payable Aug. 20 to shareholders of record July 29 (ex‑dividend July 29), implying an annualized yield of roughly ~16%.
• Quarterly NII per share beat estimates ($0.16 vs. ~ $0.11) but revenue missed and NII declined sequentially; with a dividend payout ratio above 100% and a negative net margin, the sustainability of the distribution is in question.

Prospect Capital Corporation (NASDAQ:PSEC - Get Free Report) announced a monthly dividend on Thursday, May 7th. Shareholders of record on Wednesday, July 29th will be paid a dividend of 0.035 per share by the financial services provider on Thursday, August 20th. This represents a c) dividend on an annualized basis and a yield of 16.8%. The ex-dividend date of this dividend is Wednesday, July 29th.

Prospect Capital has decreased its dividend payment by an average of 0.0%per year over the last three years. Prospect Capital has a dividend 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. Prospect Capital has a 12 month low of $2.45 and a 12 month high of $3.77. The company's 50-day moving average price is $2.67 and its two-hundred day moving average price is $2.70. 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 firm has a market cap 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 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 for the quarter, compared to analyst estimates of $163.23 million. Prospect Capital had a negative net margin of 39.56% and a positive return on equity of 11.91%.

Key Prospect Capital News

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.

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