Prospect Capital Co. (NASDAQ:PSEC) announced a monthly dividend on Thursday, February 13th, Wall Street Journal reports. Shareholders of record on Tuesday, March 31st will be paid a dividend of 0.06 per share by the financial services provider on Thursday, April 23rd. This represents a $0.72 annualized dividend and a yield of 11.04%. The ex-dividend date is Monday, March 30th.
Prospect Capital has decreased its dividend by an average of 7.4% annually over the last three years and has raised its dividend annually for the last 8 consecutive years. Prospect Capital has a payout ratio of 100.0% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings fall. Equities analysts expect Prospect Capital to earn $0.67 per share next year, which means the company may not be able to cover its $0.72 annual dividend with an expected future payout ratio of 107.5%.
Shares of NASDAQ:PSEC opened at $6.52 on Friday. The company’s 50-day moving average price is $6.53 and its two-hundred day moving average price is $6.53. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.44 and a quick ratio of 1.29. Prospect Capital has a one year low of $6.21 and a one year high of $6.95. The stock has a market capitalization of $2.41 billion, a PE ratio of 8.52 and a beta of 0.75.
Prospect Capital (NASDAQ:PSEC) last issued its quarterly earnings results on Monday, February 10th. The financial services provider reported $0.18 EPS for the quarter, hitting the consensus estimate of $0.18. Prospect Capital had a net margin of 20.47% and a return on equity of 8.74%. The firm had revenue of $161.92 million for the quarter, compared to analysts’ expectations of $155.84 million. During the same period in the previous year, the firm posted $0.22 EPS. On average, analysts anticipate that Prospect Capital will post 0.72 earnings per share for the current fiscal year.
PSEC has been the topic of several analyst reports. ValuEngine raised shares of Prospect Capital from a “sell” rating to a “hold” rating in a research report on Friday, December 27th. Zacks Investment Research cut shares of Prospect Capital from a “hold” rating to a “sell” rating in a research report on Friday. Finally, BidaskClub cut shares of Prospect Capital from a “hold” rating to a “sell” rating in a research report on Sunday, February 9th. Three investment analysts have rated the stock with a sell rating and one has assigned a hold rating to the company. The company presently has an average rating of “Sell” and an average price target of $4.00.
About Prospect Capital
Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development, capital expenditures and subordinated debt tranches of collateralized loan obligations, cash flow term loans, market place lending and bridge transactions.
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