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Actionable news in PSEC: Prospect Capital Corporation,

Stop Whining And Buy Prospect Capital For Income And Capital Appreciation


Prospect Capital's shares have risen 21.35 percent YTD.

The BDC reported Q4-16 results on Monday.

I discuss the two big takeaways from the earnings release.

An investment in PSEC yields 11.81 percent.

Business development company Prospect Capital Corp. (NASDAQ:PSEC) has done it announced stable Net Investment Income for the quarter ending in June, which is a big deal for the BDC as well as for the company's shareholders. Dividend coverage is the first thing I look at when one of my portfolio investments releases quarterly earnings. Though I did not expect that Prospect Capital's 4th quarter results would be spectacular, I figured that all the company had to do was to not mess up.

In my last piece on the BDC, entitled "Prospect Capital: Flying Higher?", I said this:

I expect the business development company to report rather unspectacular financials, with Net Investment Income likely to clock in somewhere in the range of $0.24-$0.26/share, whereas the Net Asset Value is likely to remain stable in a range of $9.50-$9.70/share.

High-risk business development companies like Prospect Capital stand to get rewarded for average results. If Prospect Capital just manages to cover its dividend with Net Investment...