Are they anticipating that it will be selling under NAV soon(latest NAV 10.72 on Sept. 30, 2013). For it to fall that far we'd need a serious market decline...........OR a cut in the dividend. Of course, the div isn't being currently "earned." Some of your capital is being return to you from accumulated realized gains.
Just look at the earnings estimates and compare them to the amount of the current dividend. Simple math shows that the div isn't currently being "earned."
2013 earnings were 1.57 for a .25 excess, 1st quarter 2014 were .32 for a .01 shortfall, PSEC put the excess into retained earnings so .24 is still available to cover any further shortfalls. As it is, the dividend has been declared thru June 2014 and by then PSEC is taking action to assure that earnings will be in excess. You have to listen to the conference calls, know how PSEC management performs, and then MAYBE you will see the light.