Gladstone Investment Corporation Stock News

Gladstone Investment Corporation's dividend coverage has deteriorated, with a 100% pay-out ratio, raising the risk of a dividend cut. The central bank's recent rate cuts negatively impact Gladstone's floating-rate debt investments, worsening the risk/reward profile. Gladstone's stock trades at a 9% premium to NAV, which is unjustified given its weakened pay-out metrics and interest rate outlook.

We take a look at the action in business development companies through the third week of September and highlight some of the key themes we are watching. BDCs were flat this week, with GAIN leading the upside due. The impact of the Fed Funds rate cut on BDC income incentive fees will become a key driver of NII differentiation once the policy rate troughs.

The fears of BDC dividends becoming unsustainable are rising. The primary driver for this is falling interest rates. While I fully appreciate this risk, in my opinion, by being very selective, investors can keep their attractive BDC dividends safe.

MCLEAN, VA / ACCESSWIRE / September 26, 2024 / Gladstone Investment Corporation (Nasdaq:GAIN) (the "Company") announced today that as a result of the October 14, 2024 federal holiday the Company's transfer agent will distribute the payment of the supplemental distribution of $0.70 per share of common stock on Tuesday, October 15, 2024. The record date for the supplemental distribution remains u...

The Federal Reserve's recent rate cut will have a complex impact on business development companies. Many BDCs will face headwinds due to falling net investment income as SOFR begins to fall. MAIN and GAIN's focus on equity investments differentiates them from typical BDCs.

On a YTD basis, Gladstone Investment has delivered flat total return performance. The most recent earnings report included some negatives that fully warrant a more cautionary stance by the market. Yet, if we dissect the underlying details, we will see that Gladstone can still nicely cover the dividend, while enjoying an improved outlook in terms of generating additional value.

MCLEAN, VA / ACCESSWIRE / September 17, 2024 / Gladstone Investment Corporation (Nasdaq:GAIN) (the "Company") announced today that its board of directors declared the following additional supplemental cash distribution to common stockholders in October 2024. Common Stock: A supplemental distribution of $0.70 per share of common stock in October 2024 payable per the table below.

MCLEAN, VA / ACCESSWIRE / September 16, 2024 / Gladstone Investment Corporation (Nasdaq:GAIN) ("Gladstone Investment") announced today the sale of its portfolio company Nth Degree, Inc. ("Nth Degree") to Shamrock Capital. As a result of this transaction, Gladstone Investment realized a significant capital gain on its remaining equity position.