Prospect Capital Co. Plans Monthly Dividend of $0.06 (NASDAQ:PSEC)

Prospect Capital Co. (NASDAQ:PSEC) declared a monthly dividend on Thursday, February 8th, Wall Street Journal reports. Stockholders of record on Friday, April 26th will be paid a dividend of 0.06 per share by the financial services provider on Tuesday, May 21st. This represents a $0.72 annualized dividend and a dividend yield of 13.15%. The ex-dividend date is Thursday, April 25th.

Prospect Capital has a dividend payout ratio of 98.6% meaning 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 $0.72 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 100.0%.

Prospect Capital Trading Up 1.4 %

Shares of Prospect Capital stock opened at $5.48 on Wednesday. Prospect Capital has a 52 week low of $5.03 and a 52 week high of $6.90. The business’s fifty day simple moving average is $5.52 and its 200-day simple moving average is $5.72. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.67.

Prospect Capital (NASDAQ:PSEC) last posted its earnings results on Thursday, February 8th. The financial services provider reported $0.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.22 by $0.02. Prospect Capital had a positive return on equity of 13.48% and a negative net margin of 1.47%. The firm had revenue of $210.94 million for the quarter, compared to analyst estimates of $226.14 million. Research analysts predict that Prospect Capital will post 0.82 earnings per share for the current year.

Wall Street Analyst Weigh In

Separately, Wells Fargo & Company increased their price objective on Prospect Capital from $5.50 to $5.75 and gave the company an “underweight” rating in a report on Monday, January 29th.

Insider Buying and Selling at Prospect Capital

In related news, CFO Dask Kristin Lea Van bought 5,000 shares of the stock in a transaction on Monday, March 11th. The shares were bought at an average cost of $5.44 per share, for a total transaction of $27,200.00. Following the purchase, the chief financial officer now owns 10,000 shares of the company’s stock, valued at approximately $54,400. The acquisition was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Company insiders own 26.69% of the company’s stock.

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.