This company is an income vehicle only suitable for investors with a large investment portfolio and a high risk tolerance.
The BDC has slashed its dividend payout in the past, which suggests that it has a higher-than-average dividend adjustment risk. The stock is currently priced at a 21 percent discount to the last reported net asset value. I rate it as a "Hold". An investment in it yields 9.8 percent.
Prospect Capital Corp. (PSEC) remains a promising income vehicle for investors seeking high, recurring dividend income. That being said, Prospect Capital Corp. has repeatedly slashed its dividend payout in the past, which increases the dividend adjustment risk considerably. I think it is crucial that income investors buy Prospect Capital Corp. at a significant discount to net asset value in order to improve their margin of safety. An investment in Prospect Capital Corp.'s common stock yields 9.8 percent.
Source: Seeking Alpha
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