Gladstone Investment: Unlocking Monthly Dividend Potential

Gladstone Capital Corporation (GLAD) is a business development company (BDC) that pays monthly dividends to its shareholders. It is one of 84 stocks that pay dividends each month, as opposed to the more common quarterly or semi-annual payment schedules. Gladstone Capital's dividend yield is nearly 9%, which is significantly higher than the average dividend yield of 1.6% offered by the S&P 500 Index. The company's primary goal is to continue paying out hefty dividends to shareholders, and it achieves this by investing in debt and equity securities, with a focus on debt investments. Gladstone Capital targets stable industries with strong leadership positions, growth potential, and annual EBITDA between $3 million and $15 million. The company's portfolio is diversified across 50 companies and 13 industries, with a fair value of $621.7 million as of the end of 2022.

Gladstone Investment Corporation (GAIN)

The company focuses on investing in buyouts of lower middle-market businesses in the United States. These are companies with annual EBITDA in the range of $3 million to $20 million. GAIN's investment strategy is to make long-term investments in high-quality businesses with strong management teams.

The company's current dividend yield is 6.9%, with occasional supplemental dividend payouts that push the yield even higher. As of 2024, GAIN pays a monthly dividend of $0.08 per share. On an annualized basis, this represents a 6.9% dividend yield.

Gladstone Investment has a long history of generating consistent dividend payments to shareholders. The company's dividend payout ratio, relative to its net investment income, has been close to or above 100% for several years over the last decade.

One reason why BDCs like GAIN can pay high dividends is due to their favourable tax structure. GAIN qualifies as a regulated investment company, which means it is generally not subject to income taxes as long as it distributes taxable income to shareholders.

GAIN's investment strategy has been successful over the past several years, with profits growing at a mid-single-digit CAGR. The company's total investment income increased by 29% year-over-year to $21.6 million in its third quarter ending on December 31, 2022.

However, it is important to note that GAIN's loans to Edge Adhesives, J.R. Hobbs, and The Mountain were on non-accrual status as of December 31, 2022, with an aggregate debt cost basis of $66.6 million.

In summary, GAIN is a very attractive stock for dividend investors, offering a high yield and monthly payouts. However, investors should carefully assess the quality of the company's business, its future growth potential, and the sustainability of the dividend before buying shares.

Gladstone Capital Corporation (GLAD)

GLAD's current dividend yield is nearly 9%, with a monthly dividend of $0.075 per share, or $1.98 per year. This is an increase from the dividend of $0.07 per share in January 2023, which was a 7.1% rise from the pre-pandemic level.

The company's primary goal is to continue paying high dividends to shareholders, and it achieves this by investing in debt and equity securities, with 90% of its portfolio in debt instruments and 10% in equity. It targets non-cyclical and non-financial companies with strong leadership positions in stable industries, growth potential, and annual EBITDA between $3 million and $15 million.

GLAD's portfolio had a fair value of $621.7 million at the end of 2022, diversified across 50 companies and 13 industries. The asset mix is conservative, with 90% of investments in secured loans, 72% of which are lower-risk first-lien loans.

The company's investment strategy has resulted in robust growth opportunities. One of the most compelling growth catalysts is rising interest rates, as the majority of its debt portfolio is in variable-rate securities.

However, GLAD has faced challenges in generating growth historically, with flat NII-per-share over time due to offsetting rising expenses and loan non-accruals.

GLAD's dividend payout ratio is projected to be 86% for 2023, which is relatively high and may introduce risk to the sustainability of the dividend during an economic downturn.

Overall, GLAD is likely attractive mainly for income investors seeking high yields.

Gladstone's monthly dividend stock

Gladstones Monthly Dividend Stock

Gladstone Capital Corporation (GLAD) is a business development company (BDC) that pays monthly dividends to its shareholders. It is one of over 180 stocks with a dividend yield of 5% or more and one of 84 stocks that pay dividends each month.

GLAD has a current dividend yield of nearly 9%, with a monthly dividend of $0.075 per share, or $1.98 per year. This is an increase from $0.07 per share in January 2023, which was a 7.1% hike from 2020 levels.

Gladstone Capital operates as a BDC, investing in debt and equity securities, with a focus on debt investments, which make up 90% of its portfolio. It targets stable industries with sustainable margins and cash flows and avoids cyclical and financial companies. It has a diversified portfolio across 50 companies and 13 industries, with a fair value of $621.7 million at the end of 2022.

Gladstone Investment Corporation (GAIN) is another BDC that pays monthly dividends. It has a current dividend yield of 6.9%, with a monthly dividend of $0.08 per share, or $0.96 per year. This includes supplemental dividend payouts that can push the yield even higher.

GAIN focuses on investing in small and medium privately-held companies in their early stages of development. It primarily invests in debt instruments, including senior term loans, senior and junior subordinated loans, and equity instruments such as preferred or common stock. It aims for a 75%-25% split between debt and equity investments.

Both GLAD and GAIN benefit from a favourable tax structure as BDCs, which requires them to distribute at least 90% of their taxable income to shareholders, eliminating income tax at the corporate level.

Gladstone's dividend yield

Gladstones Dividend Yield

Gladstone Capital Corporation (GLAD) is a business development company (BDC) with a current dividend yield of nearly 9%. This is significantly higher than the average dividend yield of 1.6% offered by the S&P 500 Index. Gladstone Capital pays a monthly dividend of $0.075 per share, which is an increase from $0.07 in 2020. This equates to 12 dividend payments per year, which is more frequent than the traditional quarterly or semi-annual payment schedules. On an annual basis, this represents a high yield of 8.9%.

Gladstone Capital maintains its high yield due to its tax classification and favourable fundamentals. As a BDC, it is required to distribute at least 90% of any taxable income, eliminating income tax at the corporate level and allowing capital gains to be passed through to shareholders, similar to a REIT.

Gladstone Investment Corporation (GAIN) is another BDC with a current dividend yield of 6.9%, with supplemental dividend payouts that can push the yield even higher. GAIN is one of a select few stocks that pay dividends each month rather than each quarter. It currently pays a monthly dividend of $0.08 per share, which is an increase from $0.073 in 2020. On an annualized basis, this represents a 6.9% dividend yield.

Like Gladstone Capital, Gladstone Investment benefits from a favourable tax structure as a regulated investment company. It is generally not subject to income taxes as long as it distributes taxable income to shareholders.

Both Gladstone Capital and Gladstone Investment offer high dividend yields that are paid out monthly, making them attractive investment options for income investors. However, investors should carefully assess the quality and sustainability of these investments, particularly in the case of economic downturns or recessions.

Gladstone's investment portfolio

Gladstone Investment Corporation (GAIN) is a business development company that focuses on acquiring mature, lower middle-market companies with strong fundamentals and management teams. Their portfolio is diversified across manufacturing, consumer products, and business/consumer services.

Gladstone Investment combines equity and debt investments in established private US businesses, primarily in the form of preferred or common equity and senior or subordinated loans. Their individual investments typically total up to $75 million, and they aim for their investment portfolio to consist of approximately 75% debt securities and 25% equity securities.

Gladstone Investment Corporation has three affiliate investment companies:

• Gladstone Commercial Corporation: A real estate investment trust focusing on net-leased industrial, commercial, and retail properties, as well as long-term industrial and commercial mortgage loans.
• Gladstone Capital Corporation: A BDC that invests in small and medium-sized private US businesses, primarily through debt instruments.
• Gladstone Land Corporation: A real estate investment trust focusing on farmland in major US agricultural markets.

Gladstone Capital Corporation (GLAD), a BDC with a diversified portfolio, is particularly noteworthy. As of the end of 2022, its portfolio had a fair value of $621.7 million, spread across 50 companies and 13 industries. The portfolio is primarily made up of secured loans (90%), with a focus on lower-risk first-lien loans (72%). GLAD's dividend yield is impressive at nearly 9%, and it distributes dividends monthly, providing shareholders with 12 payments per year.

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