NEW YORK, NY--(Marketwire - Dec 7, 2012) - Prospect Capital Corporation ( NASDAQ : PSEC ) ("Prospect") announced today that Prospect has declared revised monthly cash distributions to shareholders in the following amounts and with the following record and payment dates, representing an 8.2% increase from the previous announcement in early November and representing a dividend yield of 12.8% based on the closing stock price as of December 6, 2012:
11.0000 cents per share for December 2012 (record date of December 31, 2012 and payment date of January 23, 2013); and
11.0025 cents per share for January 2013 (record date of January 31, 2013 and payment date of February 20, 2013).
These dividends mark Prospect's 53rd and 54th consecutive cash distributions to shareholders and replace the dividends for December 2012 and January 2013 that were previously announced on November 7, 2012.
"Through September 30, 2012 in calendar year 2012, and not including expected excess income in the current December 2012 quarter, Prospect generated net investment income in excess of dividends declared of more than $70 million, or more than $0.33 per outstanding share, representing a significant storehouse of potential future additional dividend value for shareholders," said John F. Barry, Chairman and Chief Executive Officer of Prospect.
Because of its 2012 record date, Prospect's 11.0000 cents per share December 2012 dividend should enjoy current 2012 tax rates for shareholders and should not be subject to higher 2013 tax rates envisioned by currently passed United States legislation.
Based on past distributions and assuming its current share count for upcoming dividends, Prospect since inception through its January 2013 dividend will have distributed more than $10.72 per share to original shareholders and approximately $600 million in cumulative distributions to all shareholders.
Prospect expects to declare its February 2013, March 2013, and April 2013 distributions in February 2013.
"Prospect generated net investment income in excess of dividends declared of more than $70 million, or more than $0.33 per outstanding share, representing a significant storehouse of potential future additional dividend value for shareholders,"
Killer report. Still a good buy ... was selling at $12+ before the SPO just a month ago. I bought in with 16,000 shares including 10,000 at $10.15. Yield is now in the 12% range. Probably still has additional SPO money to invest. Ray sez: "Check it out."
I have 9,100 shares of PSEC and with their dividend now at $.11 per month it should kick off $1,001 per month. Earnings are way higher than the dividend. This is the stock to buy and just forget about yielding 12.5% now. I liked AGNC, but reits are too risky for me now that the Fed has declared war on the sector.