Is the Dividend taxed as regular income??
yes. Net Investment Income is passed directly to you(shareholder). The dividend for the most part is covered by NII.
To keep tax liability low , allocate psec in your sep or 401k or ira. Reinvest those dividends in your retirement account.
Sentiment: Strong Buy
Based on the dividends that I get paid into my 401k, I direct those to get paid in cash and then use those to pick up more PSEC, dividends from PSEC automatically get reinvested into PSEC.
95% non-qualified dividend.
My 1099 for 2013 showed a touch of qualified dividends, but as bacon2bacon reports, it ain't much.