PBY ETF

Prospect Capital's 25% dividend cut, the first since 2017, shocked the market, causing a 15% stock plunge, but still offers a 12% yield. The dividend cut stems from a strategic shift to focus on higher-quality, secured loans, enhancing long-term return potential and portfolio quality. Despite the cut, Prospect Capital's low non-accrual ratio and excessive NAV discount present a compelling risk/reward opportunity for high-risk-tolerant investors.

Prospect Capital offers a remarkable 13% yield, supported by strong balance sheet quality and a well-performing investment portfolio. The BDC's favorable non-accrual trend and healthy dividend coverage profile make it an attractive buy for dividend investors. Despite a near-40% discount to NAV, Prospect Capital's dividend is well-supported,.

Prospect Capital's 14% dividend yield is sustainable, supported by a 70% LTM dividend pay-out ratio and a low non-accrual ratio of 0.3%. The stock's 40% discount to net asset value is exaggerated given its robust financial condition and strong credit quality. Prospect Capital's portfolio performance is solid, with impressive loan quality and substantial excess coverage for passive income investors.