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

Prospect Capital Corporation (NASDAQ:PSEC) declared a monthly dividend on Wednesday, November 4th. Shareholders of record on Wednesday, January 27th will be given a dividend of $0.0350 per share by the financial services provider on Wednesday, February 17th. This represents a $0.42 annualized dividend and a yield of 29.7%. The ex-dividend date of this dividend is Wednesday, January 27th.

Prospect Capital has decreased its dividend payment by an average of 0.1% annually over the last three years. Prospect Capital has a payout ratio of 89.4% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings fall. Research analysts expect Prospect Capital to earn $0.35 per share next year, which means the company may not be able to cover its $0.42 annual dividend with an expected future payout ratio of 120.0%.

Prospect Capital Price Performance

Shares of PSEC traded down $0.03 during trading hours on Thursday, hitting $1.42. 5,614,468 shares of the company were exchanged, compared to its average volume of 5,119,606. The company has a debt-to-equity ratio of 0.64, a current ratio of 0.87 and a quick ratio of 0.87. The company has a market capitalization of $755.36 million, a PE ratio of 28.30 and a beta of 0.84. The firm has a fifty day simple moving average of $1.93 and a 200-day simple moving average of $2.35. Prospect Capital has a one year low of $1.40 and a one year high of $3.12.

Prospect Capital (NASDAQ:PSEC) last issued its quarterly earnings results on Wednesday, November 4th. The financial services provider reported $0.15 earnings per share for the quarter, topping analysts’ consensus estimates of $0.10 by $0.05. The firm had revenue of $151.74 million for the quarter, compared to analysts’ expectations of $163.14 million. Prospect Capital had a return on equity of 12.15% and a net margin of 19.33%. As a group, sell-side analysts predict that Prospect Capital will post 0.38 earnings per share for the current year.

More Prospect Capital News

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

• Positive Sentiment: PSEC reported $0.15 per share, above the $0.10 analyst consensus, and announced a $200 million common-share repurchase program. Repurchases could support per-share value, though the announcement does not establish how much the company will buy back. Prospect Capital results and repurchase program
• Neutral Sentiment: Call-option trading rose to 2,565 contracts, 353% above its average volume. This suggests increased speculative interest, but options activity alone does not reliably predict the stock’s direction.
• Negative Sentiment: Quarterly revenue of $151.7 million fell short of the $163.1 million consensus. Net investment income was $76.4 million, down from $79.4 million a year earlier, while NII per share declined to $0.15 from $0.17. The earnings beat therefore came alongside weaker underlying income. Prospect Capital earnings report
• Negative Sentiment: An Associated Press earnings snapshot reported a $21 million net loss, highlighting that the per-share earnings beat does not mean the company was profitable on a net basis. Fiscal Q1 earnings snapshot
• Negative Sentiment: A Seeking Alpha article raised concerns about PSEC’s high stated yield being supported by a shrinking portfolio, adding to questions about the sustainability of income and distributions. Analysis of Prospect Capital’s yield and portfolio

Prospect Capital Company Profile

Prospect Capital Corporation (NASDAQ:PSEC) is a business development company that provides financing and investment capital to middle-market companies. The company primarily invests in privately held businesses through first-lien and second-lien loans, mezzanine debt, and other debt securities, while also making equity and equity-related investments in selected companies.

Prospect Capital invests across a range of industries and has additional exposure to areas such as real estate, structured credit, and financial services.