Prospect Capital Co. (NASDAQ:PSEC) to Issue Monthly Dividend of $0.05

Prospect Capital Co. (NASDAQ:PSEC) declared a monthly dividend on Wednesday, February 12th,Wall Street Journal reports. Shareholders of record on Monday, April 28th will be paid a dividend of 0.045 per share by the financial services provider on Tuesday, May 20th. This represents a $0.54 dividend on an annualized basis and a yield of 12.39%. The ex-dividend date is Monday, April 28th.

Prospect Capital has decreased its dividend payment by an average of 2.1% per year over the last three years. Prospect Capital has a 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 Price Performance

Shares of Prospect Capital stock opened at $4.36 on Friday. The company has a current ratio of 0.48, a quick ratio of 0.48 and a debt-to-equity ratio of 0.65. The business’s 50-day moving average price is $4.32 and its 200-day moving average price is $4.81. Prospect Capital has a 12 month low of $4.09 and a 12 month high of $5.86.

Wall Street Analysts Forecast Growth

Separately, StockNews.com upgraded Prospect Capital from a “sell” rating to a “hold” rating in a research report on Friday, December 6th.

Insider Activity

In related news, CEO John F. Barry bought 1,000,000 shares of the company’s stock in a transaction that occurred on Wednesday, November 20th. The stock was bought at an average cost of $4.59 per share, for a total transaction of $4,590,000.00. Following the acquisition, the chief executive officer now directly owns 75,465,285 shares of the company’s stock, valued at $346,385,658.15. The trade was a 1.34 % increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, COO M Grier Eliasek bought 210,000 shares of the company’s stock in a transaction that occurred on Friday, November 29th. The shares were bought at an average price of $4.81 per share, with a total value of $1,010,100.00. Following the completion of the acquisition, the chief operating officer now directly owns 2,131,130 shares in the company, valued at $10,250,735.30. This trade represents a 10.93 % increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last three months, insiders have bought 5,067,273 shares of company stock worth $22,795,460. 27.10% of the stock is currently owned by insiders.

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.