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

Prospect Capital Corporation (NASDAQ:PSEC) 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 16.9%. The ex-dividend date is Thursday, August 27th.

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

PSEC stock traded down $0.27 during midday trading on Friday, reaching $2.49. The stock had a trading volume of 5,801,396 shares, compared to its average volume of 4,498,310. The stock has a market cap of $1.21 billion, a PE ratio of -3.06 and a beta of 0.82. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.74 and a current ratio of 0.74. The firm has a fifty day simple moving average of $2.67 and a two-hundred day simple moving average of $2.70. Prospect Capital has a 52-week low of $2.45 and a 52-week high of $3.77.

Prospect Capital (NASDAQ:PSEC) last issued its earnings results on Thursday, May 7th. The financial services provider reported $0.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.11 by $0.05. The company had revenue of $150.07 million during the quarter, compared to analyst estimates of $163.23 million. Prospect Capital had a positive return on equity of 11.91% and a negative net margin of 39.56%.

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.