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

Key Points

• Dividend declared: Prospect Capital announced a monthly dividend of $0.035 per share, with record date May 27 and pay date June 18, implying an annualized yield of 15.3%.
• Dividend sustainability concern: The company has a payout ratio of 114.9%, indicating it cannot cover the dividend with current earnings and is relying on its balance sheet to make payments.
• Recent results and stock metrics: Prospect reported Q1 EPS of $0.16 (beating the $0.11 estimate) but missed revenue expectations; the stock trades around $2.75 with a 12‑month range of $2.45–$3.77 and a market cap of $1.34 billion.

Prospect Capital Corporation (NASDAQ:PSEC - Get Free Report) declared a monthly dividend on Thursday, May 7th. Shareholders of record on Wednesday, May 27th will be paid a dividend of 0.035 per share by the financial services provider on Thursday, June 18th. This represents a c) dividend on an annualized basis and a yield of 15.3%. The ex-dividend date is Wednesday, May 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% 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 1.1%

Shares of NASDAQ:PSEC opened at $2.75 on Friday. The stock has a fifty day simple moving average of $2.67 and a two-hundred day simple moving average of $2.70. The stock has a market capitalization of $1.34 billion, a price-to-earnings ratio of -3.40 and a beta of 0.82. Prospect Capital has a 12-month low of $2.45 and a 12-month high of $3.77. The company has a current ratio of 0.74, a quick ratio of 0.74 and a debt-to-equity ratio of 0.62.

Prospect Capital (NASDAQ:PSEC - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The financial services provider reported $0.16 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.11 by $0.05. The business 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%.

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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