SmarterDividends
PSEC

Prospect Capital Corporation

PSEC

Financial Services · Asset Management · Stock · monthly payer

$1.49

Overvalued · -69% Add to Portfolio

Forward Yield

28.09%

Annual Dividend

$0.42

Payout Ratio

867%

5-Yr Growth

-5.6%

Ex-Date

Oct 28, 2026

Frequency

Monthly

Key facts about PSEC's dividend

Data as of · Source: SmarterDividends data

  • As of Oct 27, 2026, Prospect Capital Corporation (PSEC) has a forward dividend yield of 28.09%, based on an annual dividend of $0.42 per share and a share price of $1.49.
  • As of Oct 27, 2026, PSEC's dividend safety grade from SmarterDividends is D (41 out of 100), which rates the dividend as unsafe.
  • PSEC last cut its regular dividend in 2025.
  • PSEC's next ex-dividend date is Oct 28, 2026, with payment on Nov 18, 2026. Shares must be owned before that date to receive the dividend.
  • PSEC's dividend has shrunk at an average rate of 5.6% a year over the past five years.
  • As of Oct 27, 2026, PSEC's 28.09% yield is 134% above its five-year average yield of 12.03%.
  • As of Oct 27, 2026, SmarterDividends' blended fair-value estimate for PSEC is $0.47 per share, 69% below the $1.49 share price, so PSEC screens as overvalued.
  • Prospect Capital Corporation (PSEC) pays its dividend monthly, 12 times a year.
  • Prospect Capital Corporation (PSEC) has raised its regular dividend 26 times and cut it 5 times across the 218 payments on record since 2004. Its most recent change was a 22.2% cut to $0.0350 per share, going ex-dividend on May 27, 2026.
Cite this page

SmarterDividends, "PSEC Dividend: Yield, Safety Grade & Next Ex-Date," updated Oct 27, 2026, https://smarterdividends.com/stocks/PSEC

Summary

As of Oct 27, 2026, Prospect Capital Corporation (PSEC) yields 28.09% ($0.42 a year per share) and has a dividend safety grade of D (41/100).

Is PSEC a good dividend stock?

Higher risk

Prospect Capital Corporation (PSEC) pays a monthly dividend yielding 28.09% ($0.42/yr), with 0 years of growth and a dividend-safety grade of D. Treat the dividend with caution — recent cuts, a stretched payout or a falling price raise the risk.

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
    28.09%
    Payout Ratio
    867%
    Annual Dividend
    $0.42
    5-Yr Avg Growth
    -5.6%
    Ex-Dividend Date
    Oct 28, 2026
    Years of Growth
    0
    Frequency
    monthly
    Beta
    0.81
    Market Cap
    $795.4M
    P/E Ratio
    24.8
    5-Yr Total Return
    -83%
    52-Week Range
    $1.43 – $3.13
    Dividend Safety
    D · 41/100
    Ever Cut?
    Yes (2025)

    PSEC dividend raises and cuts

    Prospect Capital Corporation (PSEC) has raised its regular dividend 26 times and cut it 5 times across the 218 payments on record since 2004. Its most recent change was a 22.2% cut to $0.0350 per share, going ex-dividend on May 27, 2026.

    Ex-dateChangeOld → newMove
    May 27, 2026Cut$0.0450 → $0.0350−22.2%
    Nov 26, 2024Cut$0.0600 → $0.0450−25.0%
    Sep 28, 2017Cut$0.0830 → $0.0600−27.7%
    Feb 25, 2015Cut$0.111 → $0.0830−25.2%
    Aug 27, 2014Raise$0.110 → $0.111+0.9%
    Dec 27, 2012Raise$0.102 → $0.110+7.8%
    Apr 26, 2012Raise$0.101 → $0.102+1.0%
    Oct 27, 2010Raise$0.100 → $0.101+1.0%
    Aug 27, 2010Raise$0.100 → $0.101+1.0%
    Jun 28, 2010Cut$0.410 → $0.100−75.6%
    Mar 30, 2010Raise$0.409 → $0.410+0.2%
    Dec 29, 2009Raise$0.408 → $0.409+0.2%
    Show all 31 changes since 2005
    Ex-dateChangeOld → newMove
    Oct 6, 2009Raise$0.406 → $0.408+0.5%
    Jul 6, 2009Raise$0.405 → $0.406+0.2%
    Mar 27, 2009Raise$0.404 → $0.405+0.2%
    Dec 29, 2008Raise$0.403 → $0.404+0.2%
    Sep 26, 2008Raise$0.401 → $0.403+0.5%
    Jun 26, 2008Raise$0.400 → $0.401+0.3%
    Mar 27, 2008Raise$0.395 → $0.400+1.3%
    Dec 26, 2007Raise$0.393 → $0.395+0.5%
    Sep 17, 2007Raise$0.390 → $0.393+0.8%
    Jun 20, 2007Raise$0.388 → $0.390+0.5%
    Mar 21, 2007Raise$0.385 → $0.388+0.8%
    Dec 27, 2006Raise$0.380 → $0.385+1.3%
    Sep 20, 2006Raise$0.340 → $0.380+11.8%
    Jun 21, 2006Raise$0.300 → $0.340+13.3%
    Mar 22, 2006Raise$0.280 → $0.300+7.1%
    Dec 20, 2005Raise$0.200 → $0.280+40.0%
    Sep 20, 2005Raise$0.150 → $0.200+33.3%
    Jun 8, 2005Raise$0.125 → $0.150+20.0%
    Mar 9, 2005Raise$0.100 → $0.125+25.0%
    Every PSEC payment →Download every raise and cut (CSV)
    PSEC ex-dividend date & scheduleNext ex-date Oct 28, 2026 · full ex-dividend historyView →PSEC dividend historyEvery payment, totals by year, raises and cutsView →

    Frequently Asked Questions

    Is PSEC a good dividend stock?

    Higher risk. Prospect Capital Corporation (PSEC) pays a monthly dividend yielding 28.09% ($0.42/yr), with 0 years of growth and a dividend-safety grade of D. Treat the dividend with caution — recent cuts, a stretched payout or a falling price raise the risk.

    Is PSEC undervalued?

    Based on a blend of discounted cash flow, a dividend-discount model and an earnings-multiple estimate, PSEC's fair value is about $0.47 versus a $1.49 share price — so it looks overvalued (-69% vs. fair value).

    Is PSEC's dividend safe?

    PSEC has a dividend-safety grade of D (41/100), based on its payout coverage, free-cash-flow, 0-year growth streak, a dividend cut in 2025, debt and yield-versus-history.

    What is PSEC's fair value?

    Our blended fair-value estimate for PSEC is about $0.47 per share, about 69% below the current $1.49 price — combining a discounted cash flow, a dividend-discount model and an earnings multiple.

    Is PSEC a buy, hold, or sell?

    We don't issue formal ratings, but on the data PSEC screens as "higher risk" and overvalued. Prospect Capital Corporation (PSEC) pays a monthly dividend yielding 28.09% ($0.42/yr), with 0 years of growth and a dividend-safety grade of D. Treat the dividend with caution — recent cuts, a stretched payout or a falling price raise the risk. This is research for your own analysis, not investment advice.

    Will PSEC cut its dividend?

    PSEC earns a dividend-safety grade of D (41/100), and has cut its dividend before (last in 2025). A higher score means lower cut risk based on payout coverage, cash flow and history — but no score guarantees a dividend.

    Does PSEC pay a dividend?

    Yes. Prospect Capital Corporation pays a monthly dividend of about $0.42 per share annually, a forward yield of roughly 28.09%.

    What is PSEC's dividend yield?

    As of Oct 27, 2026, PSEC's forward dividend yield is 28.09%, based on a $0.42 annual dividend and a $1.49 share price.

    What is PSEC's dividend per share?

    As of Oct 27, 2026, PSEC pays $0.42 per share per year, distributed on a monthly basis.

    What is PSEC's dividend payout ratio?

    As of Oct 27, 2026, PSEC's payout ratio is 867% of trailing 12-month earnings — an elevated level worth watching, as it leaves less cushion if earnings dip.

    How many years has PSEC grown its dividend?

    PSEC does not currently have a long dividend-growth streak on record.

    When is the next PSEC ex-dividend date?

    As of Oct 27, 2026, the next ex-dividend date on record for PSEC is Oct 28, 2026.

    Income Calculator

    At $0.42 / yr per share

    Per payment (monthly)$3.50
    Annual$42.00
    Monthly avg$3.50

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