Prospect Capital Corporation (Prospect Capital), NASDAQ stock ticker PSEC, is a financial services company that lends to and invests in middle market privately-held companies. Prospect Capital is a closed-end investment company. PSEC's investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. They focus on making investments in private companies and invest primarily in first and second lien senior loans and mezzanine debt, which in some cases includes an equity component. First and second lien senior loans generally are senior debt instruments that rank ahead of subordinated debt of a given portfolio company.
PSEC's investments include other equity investments, such as warrants, options to buy a minority interest in a portfolio company, or contractual payment rights or rights to receive a proportional interest in the operating cash flow or net income of such company. Its investment adviser is Prospect Capital Management LLC.
Today's share price provides a good entry point for long term growth and their dividend looks solid. PSEC has an excellent management team and pays a very healthy dividend. PSEC is a conservative loan underwriter with large collateral positions and equity provisions.
That being said, PSEC makes for a sound loan portfolio. It has been noted that their management team has made significant purchases of their own stock, which makes this company a go to stock for dividend yield and capital gains.
I suggest picking up some shares of PSEC under $12.00 and hold for life! Watch your cost basis improve and exceed all expectations over time. Always reinvest your dividends!
Recent PSEC Statistics:
52 week7.41 - 12.00
Open11.25
Vol / Avg.1.65M/2.41M
Mkt cap1.81B
P/E6.66
Div/yield$0.10/10.94%
EPS1.67
Shares162.88M
Beta0.85
Inst. own24%
PSEC In The News:
- Prospect Capital Provides $28 Million in Senior Secured Financing to Support Acquisition of Total Fleet Solutions by CI Capital Partners, Resulting in Nearly $800 Million in Originations to Date in Calendar Year 2012
- PSEC Named Top 10 Financial at Dividend Channel With 11.14% Yield
- Prospect Capital Named Top Dividend Stock With Insider Buying
Check out PSECs current portfolio as of 12/31/11, here!
