You can seemingly rely on the dividend, which sits at about 80% of adjusted net investment income over the past year. But the dividend is really the only worthwhile aspect of GSBD—price performance is deeply negative since inception. Through the first six months of 2023, ALX generated $7.18 in funds from operations (FFO), but it paid out $9.00. In 2022, a couple years after we exited, B&G Foods cut its dividend by 60%, to 19 cents per share, where it remains today. The company is still loaded up on debt—more than $2.2 billion worth, which is more than twice its market cap. TEL AVIV (MarketWatch) — Prospect Capital Corp., the New York investor in closely held and micro-cap publicly held companies, priced late on Tuesday a public offering of 6.75 million common shares at $8.25 to raise almos…
Lowered Q4 margin expectations also dragged full-year implied estimates, to the lower 4% area from upper 4% previously. Imagine Corporation Inc. has lost half of its value over the past year, and every analyst who covers it says it’s a Hold or a Sell. And a crack or two in that wall of optimism could easily open the floodgates on those crowded shares.
Morningstar‘s Stock Analysis PSEC
The pros sure don’t like LTC, which has zero Buys, four Holds and two Sells. But the dividend appears to be safe here, and long-term, there’s no denying the importance and stickiness of these kinds of properties. I don’t see much sparking the stock in the immediate-term, but extremely patient investors might give LTC a closer look. AngioDynamics Inc. , according to analysts polled at Thomson Financial, is expected to report earnings of 10 cents a share for its fiscal first quarter. SAN FRANCISCO (MarketWatch) — Among the companies whose shares are likely to see active trade in Monday’s session are Palm Inc., Walgreen Co., Johnson & Johnson, Novartis and more.
Investor sentiment plays a significant role in determining the company’s valuation. Recent changes in investor sentiment may stem from market dynamics, macroeconomic factors, or specific events impacting the investment landscape. Regarding debt levels, Prospect Capital maintains a healthy balance sheet. The company prudently manages its debt-to-equity ratio to minimize risk and ensure financial stability. Recent changes in ownership indicate the ongoing interest of investors in the company’s potential.
TEL AVIV (MarketWatch) — Prospect Capital Corp., the New York closed-end investment company specializing in closely held and micro-capitalization publicly traded businesses, began a public offering of 1.5 million common … Among the companies whose shares are expected to see active trade in Thursday’s session are Ameron, Children’s Place, Clear Channel Communications, CNet, ConAgra, DSW, Google, Lennar, McCormick, Oracle, Paychex, Scholastic… Highlights of shares that are the most notable movers in the U.S. stock market on Friday. With Treasurys a lost cause investment-wise at this time, Leon Cooperman of Omega Advisors has gone heavily toward high-yield stocks as a replacement.. Prospect Capital has experienced a deterioration in credit quality and in increase in non-accruals in the last quarter which may explain why the BDC’s stock has recently fallen to 52-week lows. A little more than half of all investments (56.5%) were made in First Lien Debt, which are the most secured debt investments a BDC can make.
Prospect Capital is a cheaply-priced high-yield dividend stock
A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. 1 Wall Street equities research analysts have issued “buy,” “hold,” and “sell” ratings for Prospect Capital in the last twelve months.
Michael Grier Eliasek serves as the President and Chief Operating Officer of Prospect Capital. His extensive investment banking and private equity background have contributed significantly to the company’s growth and success. Last August, I warned investors about a handful of office REITs, including Alexander’s (ALX, 9.4% yield), which is actually managed by Vornado Realty VNO
Trust (VNO) and owns five properties in the greater NYC metropolitan area. ALX has since waffled between breakeven and deep in the red since then, and it’s currently sitting on 15% losses—even after factoring in its nearly double-digit dividend. Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes.
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BGS does trade at just 40% of sales, however, and a reasonable 11 times earnings estimates. Let’s say Corporation Inc. (FIRM) has roughly doubled in price over the past year. It’s a mega-cap stock, so a whopping 40 analysts cover it, and every last one of those analysts says Corporation is a screaming Buy. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
Its investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. The company invests primarily in senior and subordinated debt and equity of private companies for acquisitions, divestitures, growth, development, recapitalizations, and other purposes. It makes investments, including lending in private equity, sponsored transactions, directly to companies, investments in structured credit, real estate, and syndicated debt. Prospect Capital Corp., a traded business development company invests in middle market companies located in the United States.
Other BDCs trade at much narrower discounts to net asset value which indicates to me that passive income investors are presently viewing PSEC through bearish-colored lenses. Regulatory and political factors can significantly impact the investment industry. Changes in regulations, such as those related to lending practices, taxation, or disclosure requirements, may affect the operating environment for investment companies. Political developments, including changes in government policies or economic conditions, can also influence investor sentiment and market dynamics.
Company Profile PSEC
It’s operated competently, and its dividend is well-covered at about 85% of estimated 2023 FFO. It’s merely dealing with a crappy environment for all self-storage names—a mix of extremely high home prices, high interest rates and the potential for a recession all bode poorly for its short-term prospects. It’s not uncommon to find hated high yields in the real estate investment trust (REIT) space.
The company closely monitors market trends and employs rigorous due diligence to mitigate these risks. In April, I said investors should sell Cracker Barrel Old Country Stores (CBRL, 6.8% yield), and here’s hoping you did—CBRL shares have lost a quarter of their value since then. But just about any stock is worth a re-examination after a move that big.
NEW YORK, Nov. 14, 2022 (GLOBE NEWSWIRE) — Prospect Capital Corporation (the “Company”) today announced that it has commenced a cash tender offer (the “Tender Offer”) to purchase any and all of the o… NEW YORK, Nov. 21, 2022 (GLOBE NEWSWIRE) — Prospect Capital Corporation (the “Company”) today announced the results of its previously announced cash tender offer (the “Tender Offer”) to purchase any … These are serious yields we’re looking at—the kind we need to retire on dividends alone. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Since Prospect Capital’s non-accruals have risen in the June quarter, there is a risk that the BDC’s dividend coverage could deteriorate moving forward.
PSEC’s beta can be found in Trading Information at the top of this page. A stock’s beta measures how closely tied its price movements have been to the performance of the overall market. Style is an investment factor that has a meaningful impact on investment risk and returns.
At the moment, Goldman sees fit to hold 135 portfolio companies across 36 industries. Income investors, check out these stocks with annual dividend yields over 6%. Prospect Capital earned $0.23 per share in net investment income in the June quarter while the company continued to pay out $0.06 per month in dividends. This translated into a dividend https://1investing.in/ coverage ratio of 128% in the last quarter and a dividend coverage ratio of 124% in the last twelve months. Like any investment company, Prospect Capital faces certain risks and challenges. Changes in consumer preferences or market conditions may impact the performance of its portfolio companies, affecting the value of its investments.
Competitive pressures in the investment industry can pose challenges as well. Prospect Capital competes with other firms to identify and secure attractive investment opportunities. The company focuses on building solid relationships with its portfolio companies, leveraging its industry annualized attrition formula expertise, and offering flexible financing solutions to stay ahead. Prospect Capital has demonstrated strong financial performance in recent years. The company has consistently generated revenue and earnings, showcasing its ability to identify lucrative investment opportunities.
Prospect Capital (PSEC)
The company’s target market primarily consists of middle-market companies across various industries. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.32% per year. These returns cover a period from January 1, 1988 through July 31, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month.
Put simply, in the short-term Prospect Capital should be able to sustain its present 12% dividend yield. Prospect Capital invests in a number of different businesses including Middle-Market Lending/Buyouts, Subordinated Structured Notes and Real Estate. In total, Prospect Capital made $7.72 billion in investments in 130 portfolio companies as of 30 June 2023. Prospect Capital is a publicly-traded closed-end investment company that is regulated as a BDC. As such, the company must distribute over 90% of its profits to shareholders which makes it an attractive passive income instrument for investors that seek to generate a high amount of recurring income.
It also makes real estate investments particularly in multi-family residential real estate asset class. The fund makes secured debt, senior debt, senior and secured term loans, unitranche debt, first-lien and second lien, private debt, private equity, mezzanine debt, and equity investments in private and microcap public businesses. It also focuses on investing in small-sized and medium-sized private companies rather than large public companies. The fund typically invests across all industry sectors, with a particular expertise in the energy and industrial sectors. The fund seeks control acquisitions by providing multiple levels of the capital structure. Prospect Capital Corp is a closed-end investment company based in the United States.
Lufax Holding Ltd. Sponsored ADR (LU) Q2 Earnings Top Estimates
The company is headquartered in New York City and has a strong presence across the United States. Prospect Capital supports its portfolio companies in achieving their strategic objectives by providing capital and operational expertise. Prospect Capital is a business development company offering a diverse range of financial products and services. These include senior debt, subordinated debt, and minority equity investments.
- As such, the company must distribute over 90% of its profits to shareholders which makes it an attractive passive income instrument for investors that seek to generate a high amount of recurring income.
- By closely monitoring market trends, investors can gain insights into the potential trajectory of the company’s stock price.
- The pros sure don’t like LTC, which has zero Buys, four Holds and two Sells.
- It provides debt and equity financing for buyout, growth, development, and recapitalization.
- Despite its pedigree, GSBD hasn’t provided much of a premium as far as performance is concerned.
- Put simply, in the short-term Prospect Capital should be able to sustain its present 12% dividend yield.
NSA is an interesting self-storage REIT in that it’s more of a collective—its PRO (participating regional operators) program brings in private self-storage operators. It brings in more units through strategic joint ventures and third-party acquisitions. LTC LTC
Properties (LTC, 7.1% yield) is a national REIT that’s roughly 50/50 split between senior housing and skilled nursing properties. The worst of COVID is long behind it, but even this year, LTC has had to shell out deferrals and abatements to troubled tenants. On the upside, Cracker Barrel has seen success with budget offerings, such as its $5 takeout meals, and it is also expanding its catering business. But costs continue to weigh hard on the restaurant—in its latest earnings report, management lowered its Q4 revenue estimates, which also brought down its full-year implied revenue estimates.