2024-03-10 20:17:59 ET
Summary
- Gladstone Capital saw its net asset value grow by 22 cents sequentially and kept its monthly cash distribution unchanged at $0.0825 per share.
- The BDC currently offers a 9.6% dividend yield, with its fiscal 2024 first quarter NII per share covering its dividend by 110%.
- Non-performing debt also dipped by 100 basis points to 0.4% of GLAD's total debt portfolio at the end of the first quarter, with the BDC prioritizing first lien originations.
I rated Gladstone Capital ( GLAD ) as a buy when I last covered the business development company. Total returns since then have been marginally positive, at just over 6%. The BDC just reported fiscal 2024 first-quarter earnings, ending December 31st, 2023, with total and net investment income underperforming versus consensus estimates. Total investment income for the first quarter at $23.2 million dipped by $600,000 sequentially but grew by 20.4% over its year-ago comp. The BDC also declared a monthly cash dividend of $0.0825 per share , kept unchanged from the prior month and $0.99 per share annualized, for a 9.6% dividend yield. Critically, first-quarter NII per share at $0.274 means the BDC currently covers the 3-month aggregate of its monthly distribution by 110%, a roughly 90% payout ratio....
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Gladstone Capital: This 9.6% Dividend Yield Is Still A Buy