Gladstone Capital Co. (NASDAQ:GLAD) Plans $0.07 Monthly Dividend

Gladstone Capital Co. (NASDAQ:GLAD) announced a monthly dividend on Thursday, January 13th, Wall Street Journal reports. Shareholders of record on Friday, February 18th will be paid a dividend of 0.065 per share by the investment management company on Monday, February 28th. This represents a $0.78 annualized dividend and a yield of 6.91%. The ex-dividend date is Thursday, February 17th.

Gladstone Capital has decreased its dividend by 7.1% over the last three years. Gladstone Capital has a payout ratio of 97.5% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Equities research analysts expect Gladstone Capital to earn $0.80 per share next year, which means the company should continue to be able to cover its $0.78 annual dividend with an expected future payout ratio of 97.5%.

NASDAQ GLAD opened at $11.28 on Friday. The company has a current ratio of 0.03, a quick ratio of 0.03 and a debt-to-equity ratio of 0.16. Gladstone Capital has a 1-year low of $9.02 and a 1-year high of $12.58. The company has a 50 day moving average of $11.55 and a 200-day moving average of $11.52. The company has a market cap of $386.90 million, a price-to-earnings ratio of 4.44, a PEG ratio of 2.88 and a beta of 1.38.

Gladstone Capital (NASDAQ:GLAD) last posted its earnings results on Monday, November 15th. The investment management company reported $0.20 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.20. Gladstone Capital had a net margin of 156.71% and a return on equity of 9.26%. The firm had revenue of $14.36 million for the quarter, compared to analysts’ expectations of $13.89 million. During the same quarter in the previous year, the firm posted $0.20 earnings per share. On average, equities research analysts forecast that Gladstone Capital will post 0.79 earnings per share for the current year.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. UBS Group AG raised its position in shares of Gladstone Capital by 19.0% during the 3rd quarter. UBS Group AG now owns 53,551 shares of the investment management company’s stock valued at $605,000 after buying an additional 8,537 shares in the last quarter. Royal Bank of Canada lifted its position in Gladstone Capital by 14.6% during the 3rd quarter. Royal Bank of Canada now owns 25,481 shares of the investment management company’s stock valued at $289,000 after acquiring an additional 3,246 shares during the period. Morgan Stanley raised its holdings in Gladstone Capital by 15.3% in the second quarter. Morgan Stanley now owns 210,688 shares of the investment management company’s stock worth $2,408,000 after buying an additional 27,908 shares during the last quarter. Finally, Wells Fargo & Company MN raised its holdings in shares of Gladstone Capital by 79.4% during the second quarter. Wells Fargo & Company MN now owns 7,037 shares of the investment management company’s stock valued at $80,000 after purchasing an additional 3,115 shares during the last quarter. 10.24% of the stock is owned by institutional investors.

Separately, Zacks Investment Research upgraded shares of Gladstone Capital from a “hold” rating to a “buy” rating and set a $13.00 price objective on the stock in a report on Wednesday, December 29th.

Gladstone Capital Company Profile

Gladstone Capital is a specialty finance company that invests in debt securities consisting primarily of senior term loans, senior subordinated loans, and junior subordinated loans in small and medium sized companies, that meet certain criteria. The criteria can include some or all of the following: the potential for growth in cash flow, adequate assets for loan collateral, experienced management teams with significant ownership interest in the business, adequate capitalization, profitable operations based on the borrower’s cash flow, reasonable capitalization of the borrower and the potential to realize appreciation and gain liquidity in our equity position, if any.

Read More: Special Dividends

Dividend History for Gladstone Capital (NASDAQ:GLAD)

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