NEWT - Gladstone Investment's Updated Dividend Sustainability Analysis (Impacts From Very Large Deemed Distribution)
Focus of Article:
In light of a recent rare event, the focus of this article is to provide an updated analysis, with supporting documentation (via three tests), on the dividend sustainability of Gladstone Investment Corp. (GAIN) through calendar year 2019. This analysis will be provided after a discussion of GAIN’s deemed distribution and the direct impacts this event has on the company’s Internal Revenue Code (“IRC”)/taxation metrics. The first two tests will focus on GAIN’s net investment company taxable income (“ICTI”) and the company’s undistributed taxable income (“UTI”). These two tests will be