Prospect Capital Corporation
PSECFinancial Services · Stock · monthly payer
Forward Yield
18.83%
Annual Dividend
$0.42
Payout Ratio
867%
5-Yr Growth
-5.6%
Ex-Date
Sep 28, 2026
Frequency
Monthly
Summary
As of September 2026, Prospect Capital Corporation (PSEC) yields 18.83% ($0.42 per share annually), with a blended fair-value estimate of $6.99 — +211% upside, so it screens as undervalued. Dividend safety grade: D (46/100).
Is PSEC a good dividend stock?
MixedProspect Capital Corporation (PSEC) pays a monthly dividend yielding 18.83% ($0.42/yr), with 0 years of growth and a dividend-safety grade of D. The picture is mixed — the dividend pays, but safety or growth signals are weaker than ideal.
Advantages
Risks
- Cut its dividend in 2025
- Elevated payout ratio (867%)
- Dividend has been shrinking, not growing
- Very high yield can signal elevated risk
- Share price is down over the past 5 years
- Below-average dividend safety score
Key Data
- Dividend Yield
- 18.83%
- Payout Ratio
- 867%
- Annual Dividend
- $0.42
- 5-Yr Avg Growth
- -5.6%
- Ex-Dividend Date
- Sep 28, 2026
- Years of Growth
- 0
- Frequency
- monthly
- Beta
- 0.78
- Market Cap
- $1.1B
- P/E Ratio
- 36.5
- 5-Yr Total Return
- -71%
- 52-Week Range
- $2.11 – $3.13
- Dividend Safety
- D · 46/100
- Ever Cut?
- Yes (2025)
Frequently Asked Questions
PSEC Price — Last 12 Months
Daily close
Price Return
1 Year
-18%
3 Years
-63%
5 Years
-71%
52-Week Range
$2.11 – $3.13
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is PSEC worth?
Undervaluedlow confidenceOur blended fair-value estimate for Prospect Capital Corporation is $6.99 per share, versus a market price of $2.25. That implies 211% of upside — a margin of safety of about 68%.
Fair Value
$6.99
Current Price
$2.25
Upside
+211%
Margin of Safety
68%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Dividend discount
Discounts the future dividend stream back to today.
At today's price, the market is pricing in about -10.0% annual free-cash-flow growth. We model -5.0% — below our estimate, leaving room for upside if the business executes.
Assumptions: 8.2% discount rate (CAPM), -5.0% stage-1 growth, 2.5% terminal growth, $0.06 EPS, $0.42 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
PSEC Dividend Safety Score
Risky
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Aug 27, 2026 | — | $0.0350 | regular |
| Jul 29, 2026 | — | $0.0350 | regular |
| Jun 26, 2026 | — | $0.0350 | regular |
| May 27, 2026 | — | $0.0350 | regular |
| Apr 28, 2026 | — | $0.0450 | regular |
| Mar 27, 2026 | — | $0.0450 | regular |
| Feb 25, 2026 | — | $0.0450 | regular |
| Jan 28, 2026 | — | $0.0450 | regular |
| Dec 29, 2025 | — | $0.0450 | regular |
| Nov 25, 2025 | — | $0.0450 | regular |
| Oct 29, 2025 | — | $0.0450 | regular |
| Sep 26, 2025 | — | $0.0450 | regular |
| Aug 27, 2025 | — | $0.0450 | regular |
| Jul 29, 2025 | — | $0.0450 | regular |
Income Calculator
At $0.42 / yr per share
