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

Key Points

• Prospect Capital declared a monthly dividend of $0.035 per share, payable November 18 to shareholders of record October 28. The dividend implies an annualized yield of approximately 18.4% and an 89.4% payout ratio.
• Quarterly earnings and revenue exceeded expectations, with earnings of $0.15 per share versus the $0.11 consensus and revenue of $155.76 million versus $149.80 million expected.
• Despite the headline earnings beat, net asset value declined to $5.71 per share from $6.05, while net investment income also slipped, raising questions about future dividend coverage.

Prospect Capital Corporation (NASDAQ:PSEC - Get Free Report) declared a monthly dividend on Thursday, August 20th. Stockholders of record on Wednesday, October 28th will be given a dividend of 0.035 per share by the financial services provider on Wednesday, November 18th. This represents a c) annualized dividend and a dividend yield of 18.4%. The ex-dividend date of this dividend is Wednesday, October 28th.

Prospect Capital has decreased its dividend by an average of 0.0%annually over the last three years. Prospect Capital has a dividend payout ratio of 89.4% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall.

Prospect Capital Stock Up 1.3%

Shares of Prospect Capital stock opened at $2.28 on Friday. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 0.59. Prospect Capital has a 12-month low of $2.11 and a 12-month high of $3.13. The company's fifty day simple moving average is $2.24 and its two-hundred day simple moving average is $2.47. The company has a market cap of $1.14 billion, a P/E ratio of -6.16 and a beta of 0.79.

Prospect Capital (NASDAQ:PSEC - Get Free Report) last released its quarterly earnings results on Thursday, August 20th. The financial services provider reported $0.15 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.04. The company had revenue of $155.76 million for the quarter, compared to analyst estimates of $149.80 million. Prospect Capital had a positive return on equity of 12.03% and a negative net margin of 10.42%.

Trending Headlines about Prospect Capital

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

• Positive Sentiment: Quarterly earnings and revenue exceeded expectations. Prospect reported net investment income of $0.15 per share, above the $0.11 analyst consensus, while total investment income reached $155.8 million versus estimates of $149.8 million. Prospect Capital Announces June 2026 Results
• Positive Sentiment: Monthly dividend payments were maintained. PSEC declared $0.035 per share monthly dividends for September, October and November, representing an annualized yield of approximately 18.4% based on the cited stock price. The income remains a key attraction for investors in the business development company.
• Positive Sentiment: Liquidity and a portfolio-company sale provide financial flexibility. Cash plus undrawn revolving credit commitments totaled $1.60 billion, and the July sale of Valley Electric generated approximately $328 million in total consideration.
• Positive Sentiment: Prospect’s affiliated Enhanced Yield Fund reported strong performance. Prospect Enhanced Yield Fund (PAYIX) returned 7.61% in its first year, outperforming comparable credit benchmarks by 257 basis points. While PAYIX is not PSEC’s stock, the result may reinforce investor confidence in Prospect’s credit-investment platform. Prospect Enhanced Yield Fund Benchmark Outperformance
• Neutral Sentiment: Fiscal 2026 results and the Form 10-K were released as scheduled. Management also held an earnings conference call, giving investors additional information on portfolio credit quality, originations and strategy.
• Negative Sentiment: Net asset value declined materially. PSEC reported a $38.1 million net loss, or $0.08 per share, for the quarter. Net realized and unrealized investment losses totaled $83.8 million, pushing NAV per share down to $5.71 from $6.05 in the prior quarter.
• Negative Sentiment: Core income softened. Net investment income fell from $78.5 million, or $0.16 per share, in the prior quarter to $77.7 million, or $0.15 per share, raising concerns about earnings and dividend coverage despite the headline beat.

About Prospect Capital

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.

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