Dividend-News

Daily dividend news for investors in dividend stocks


Prospect Capital Reduces Its Distribution

Published Tue, 22 Jun 2010 07:08:48 -0400 on Seeking Alpha

As we have long expected and predicted, Prospect Capital (ticker: PSEC) has reduced its dividend distribution level. Our skepticism about the company's ability to maintain its policy of ever increasing dividends was based upon the very substantial gap between Prospect's Net Investment Income Per Share and the dividend: 11 cents a share. That's after Prospect harvested many of the benefits of acquiring Patriot Capital at a discount, as well as getting the one time benefit of repricing three loans last quarter. Here's the language from the last Earnings Report which explains this item: During the three months ended March 31, 2010, we repriced our loans to Aircraft Fasteners International, LLC ("AFI"), Prince Mineral Company, Inc. ("Prince") and R-O-M Corporation ("ROM"). The revised terms were more favorable than the original terms and increased the present value of the future cash flows. In accordance with ASC 320-20-35, the cost bases of the new loans were recorded at par value, resulting in $6.7 million of accelerated original purchase discount recognized as interest income.... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
PROSPECT CAPITAL 6.71   16.8 0.40 0.72 10.76

PROSPECT CAPITAL - PSEC
PROSPECT CAPITAL - PSEC  


Older articles featuring Prospect Capital (PSEC):
Upcoming Rally For BDCs Currently Yielding 13%
Ares Capital's NAV, Dividend, And Valuation Vs. 14 BDC Peers - Part 2 (Includes Q3-Q4 2020 Dividend Projections)
Top Monthly-Paying Dividend Stocks And Funds For June
8% To 10% Balanced Portfolio Yield Investing In America: Part 2
Ares Capital's NAV, Dividend, And Valuation Versus 14 BDC Peers (Post Q1 2020 Earnings - Attractive Valuation)
Earn An 8% To 10% Balanced Portfolio Yield Investing In America: Part 1
Top Monthly Paying Dividend Stocks And Funds, Your Mid-May Update
TCG: Why I Bought Carlyle Group's BDC Currently Yielding 21%
BDCs Continue To Affirm Dividends: Capital Southwest At 15%
Picking Winners And Losers In The 18% Yielding BDC Sector

More