This Simple Mistake Could Kill Your Profits (And Dividends) For Years

The article discusses the importance of focusing on total return for income investors, highlighting the risks of chasing high dividend yields, such as the 21.1% payout from Prospect Capital Corp. (PSEC), which has resulted in poor overall returns. It suggests a balanced approach, recommending yields around 8% to 10% for sustainability. The Liberty All-Star Equity Fund (USA) is presented as a strong option, offering a 10.9% yield while maintaining dividend growth and trading at a discount to NAV, allowing for potential capital gains alongside income.

Prospect Capital’s Earnings Call Highlights Strategic Moves

Prospect Capital's Q1 earnings call highlighted strong net investment income of $79.4 million and strategic asset repositioning towards first-lien senior secured loans. The company reported effective debt management, with 80.8% of total debt being unsecured, and successful real estate exits yielding a 23% gross cash IRR. However, challenges included a low income yield of 5.1% from real estate and significant net repayments of $143 million. The company maintains a robust liquidity position of $1.5 billion and announced monthly distributions of $0.045 per share, focusing on optimizing its portfolio for future returns.

Prospect Capital Reports Steady Q3 2025 Earnings

Prospect Capital (PSEC) reported steady Q3 2025 earnings, with net investment income of $79.35 million, consistent with the previous quarter but down from $89.88 million year-over-year. Net income applicable to common shareholders improved to $48.09 million. The net asset value per share slightly declined to $6.45. The company is focusing on first lien senior secured loans and has exited three real estate properties for $59 million. Management aims to enhance portfolio performance and leverage a cost-efficient credit facility for future growth.

Prospect Capital | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 157.62 M

Prospect Capital Corporation Highlights Middle Market Investment Strategy in New Investor Presentation

Prospect Capital Corporation (NASDAQ: PSEC) has released a new investor presentation detailing its middle market finance strategy. The company manages $6.6 billion in total assets, with $4.6 billion in equity and 29% debt capitalization. The portfolio focuses on senior secured debt, with 71.1% in first lien loans. The company reports a 12% gross internal rate of return on over 350 exits and a non-accrual loan rate of 0.7%. The strategy emphasizes risk reduction and capital preservation in non-cyclical industries.