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Four Gladstone funds pay monthly and all share the same October deadline, but the earnings behind each yield tell very different stories about which checks are safest to count on.
Four Gladstone family monthly payers share the same deadline this week. Gladstone Commercial (NASDAQ:GOOD), Gladstone Land (NASDAQ:LAND), Gladstone Capital (NASDAQ:GLAD) and Gladstone Investment (NASDAQ:GAIN) all go ex-dividend on Friday, October 23, 2026, with payment set for October 30, 2026. That leaves Thursday, October 22, as the last chance to own shares and still collect this payout. Forward yields run from about 6.4% to just over 10.2%, and the cash supporting each payout varies widely from one name to the next. For a fuller look at the four companies, see our recent breakdown of the Gladstone dividend lineup.
The deadline is simple: the ex-dividend date is the first day a stock trades without its next dividend, so you have to own shares before that date to get paid. That’s when the cash shows up.
Gladstone Commercial (GOOD): A 10% Yield Backed by Core FFO The net-lease REIT pays $0.10 each month. Shares go ex on October 23, 2026, so October 22 is the last day to buy. With shares at $11.82, the $1.20 annual rate translates to a 10.2% forward yield. Part of that yield comes from a recent drop: shares fell 7.8% over the past week but are still up 19.2% year to date. That $0.10 monthly payout has held steady since January 2023. Before that, it was $0.1254 in 2022, so income investors should remember that this payout has been cut before.
For REITs, FFO is the right measure of coverage. Adjusted Core FFO came in at $0.38 per diluted share in the second quarter, against $0.30 in quarterly distributions. That is a payout ratio of about 79%. One warning: a lease termination fee raised that quarter’s Core FFO, so the buffer from regular operations is smaller than it looks. The underlying operations look solid: 151 properties, 98.7% leased and 100% cash rent collection through July.
Gladstone Land (LAND): Coverage Depends on a Big Fourth Quarter The farmland REIT pays $0.0467 monthly. It goes ex on October 23, 2026, and pays on October 30. That $0.5604 annual rate yields about 6.4% at $8.81. Price weakness has a lot to do with that yield: shares slid 8.42% in the past week and are down 53.07% over five years.
Gladstone Land has the lowest coverage of the four. First-quarter AFFO came to $0.08 per share, compared with $0.1401 in quarterly distributions, a payout of roughly 175% for that quarter. Management expects the substantial majority of 2026 revenue and earnings to land in the fourth quarter, when participation rents are recognized. Second-quarter GAAP EPS of -$0.32 missed the -$0.28 estimate and included about $4.2 million in non-cash impairments on four Arizona farms.
Crop prices help: one major pistachio processor raised its initial base price 67% to $2.50 per pound. But 2026 is expected to be a pistachio off year, and a March heat event hurt California pollination. Roughly 96% fixed-rate debt limits interest-rate risk. Even so, this payout depends on the fourth quarter delivering.
Gladstone Capital (GLAD): Net Investment Income Covers the Payout The lower-middle-market BDC pays $0.15 monthly. It goes ex on October 23, 2026, and pays on October 30. The $1.80 forward rate yields 9.5% at $18.97. Shares are down just 0.5% year to date, so the yield comes from the payout itself rather than a falling price. Keep in mind that the monthly rate was $0.165 through September 2025 before it was adjusted to $0.15.
For BDCs, net investment income (NII) is what matters most. Fiscal third-quarter NII of $0.49 per share beat the $0.47 estimate and covered the $0.45 quarterly distribution, a payout of about 92%. The quarter before, adjusted NII covered 116% of cash distributions. The main credit flag is non-earning loans at five companies totaling $26.7 million, or 3.1% of debt investments at fair value. For more on how BDCs fit an income portfolio, see our look at where safe income meets growth.
Gladstone Investment (GAIN): A Modest Regular Yield Plus Possible Extras From Exits The buyout-focused BDC pays $0.08 monthly. It goes ex on October 23, 2026, and pays on October 30. The $0.96 regular annual rate yields 6.4% at $15, below the net asset value of $16.24 per share. Shares have gained 12.57% year to date, even after a 4.94% drop over the past month.
Adjusted NII of $0.26 per share in fiscal first-quarter 2027 beat the $0.21 estimate and covered the $0.24 quarterly distribution, a payout of about 92%. NAV fell 3.2% from the prior quarter on $18.78 million in net unrealized depreciation and a $9.0 million realized loss on the Home Concepts restructuring. All of its debt investments carry variable rates. 51.8% sit at their floors, which buffer some of the hit to income if rates fall. Gladstone Investment has paid supplemental distributions before, including $0.54 in June 2025, and it expects a significant capital gain from the SFEG Holdings sale. However, it has not declared any additional payment.
Missing the Deadline Means Missing the Check Buying a stock for one monthly payment rarely pays off, as share prices usually fall by roughly the dividend amount on the ex-date. The better approach is to pick payouts that earnings can support: Gladstone Capital and Gladstone Investment cover theirs with net investment income, Gladstone Commercial’s coverage depends partly on a one-time fee, and Gladstone Land’s depends on its fourth quarter. If you don’t own shares before the market opens on October 23, you miss this payout.
Contact [email protected] for any questions or corrections.
One Virginia management team runs four separate monthly dividend streams across loans, buyouts, industrial leases, and farmland, but each engine carries its own risk, and the safety story behind each payout looks very different from the others.
MCLEAN, VA / ACCESS Newswire / October 13, 2026 / Gladstone Investment Corporation (Nasdaq:GAIN) (the "Company") announced today that its board of directors declared the following monthly cash distributions to common stockholders. The Company also announced its plan to report earnings for its second fiscal quarter ended September 30, 2026.
Common Stock: $0.08 per share of common stock for each of October, November and December 2026 payable per the table below.
Record Date
Payment Date
Cash Distribution October 23
October 30
$0.08 November 19
November 30
$0.08 December 21
December 31
$0.08 Total for the Quarter:
$0.24 The Company offers a dividend reinvestment plan (the "DRIP") to its common stockholders. For more information regarding the DRIP, please visit www.gladstoneinvestment.com.
The Company also announced today that it plans to report earnings after the stock market closes on Monday, November 9, 2026, for its second fiscal quarter ended September 30, 2026. The Company will hold a conference call on Tuesday, November 10, 2026 at 8:30 a.m. Eastern Time to discuss its earnings results. Please call (866) 373-3416 to enter the conference call. An operator will monitor the call and set a queue for questions.
A conference call replay will be available beginning after the call and will be accessible through November 17, 2026. To hear the replay, please dial (877) 660-6853 and use playback conference number 13762360.
The live audio broadcast of the Company's conference call will be available online at www.gladstoneinvestment.com. The event will also be archived and available for replay on the Company's website.
About Gladstone Investment Corporation: Gladstone Investment Corporation is a publicly traded business development company that seeks to make secured debt and equity investments in lower middle market businesses in the United States in connection with acquisitions, changes in control, and recapitalizations. Information on the business activities of all the Gladstone funds can be found at www.gladstonecompanies.com.
Investor Relations Inquiries: Please visit www.gladstonecompanies.com or (703) 287-5893.
MCLEAN, VA / ACCESS Newswire / September 30, 2026 / Gladstone Investment Corporation (Nasdaq:GAIN) ("Gladstone Investment") announced today that it closed on the acquisition of Extrude Hone, an Irwin, Pennsylvania-based company. Extrude Hone is a leading provider of precision surface-finishing solutions used in mission-critical applications such as aerospace, automotive, heavy industrial, energy and other demanding end markets. The company's proprietary technologies and service capabilities help customers improve product performance, reliability and manufacturing efficiency.
Extrude Hone represents another example of Gladstone Investment's focus on partnering with established lower middle market businesses that hold leading positions in specialized industrial niches. Extrude Hone has built a strong reputation for technical expertise, long-standing customer relationships and mission-critical manufacturing solutions across a diverse set of end markets.
"We are excited to partner with the Extrude Hone management team and support the company's next phase of growth," said Christopher Lee, Executive Vice President of Gladstone Investment. "Extrude Hone has developed a strong market position, differentiated capabilities and a long history of serving customers with highly engineered finishing solutions. We look forward to investing alongside management to build upon that foundation."
"We are pleased to announce the acquisition of Extrude Hone, adding another quality company to Gladstone Investment's portfolio of operating businesses. We expect it to produce both income for dividends to shareholders and longer-term appreciation for capital gains," said David Dullum, Chief Executive Officer and President of Gladstone Investment.
Gladstone Investment is a publicly traded business development company that seeks to make equity and secured debt investments in lower middle market businesses in the United States in connection with acquisitions, changes in control and recapitalizations. Additional information on the transaction can be found at www.gladstoneinvestment.com.
For Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.gladstone.com.
Forward-looking Statements:
The statements in this press release regarding the longer-term prospects of Gladstone Investment, Extrude Hone, and their management teams, and the ability of Gladstone Investment and Extrude Hone to grow and expand are "forward-looking statements." These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on Gladstone Investment's current plans that are believed to be reasonable as of the date of this press release, a number of factors could cause actual results and conditions to differ materially from these forward-looking statements, including those factors described from time to time in Gladstone Investment's filings with the Securities and Exchange Commission. Gladstone Investment undertakes no obligation to update or revise these forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
For further information: Gladstone Investment Corporation, (703) 287-5893
Given the higher-for-longer interest rate environment, the Zacks SBIC & Commercial Finance industry is poised to benefit from wider investment spreads and higher investment income, as a substantial portion of portfolios are tied to floating rates. Resilient economic growth and continued demand for flexible, customized financing from middle-market companies will likely provide further support.
However, rising concerns around private credit and increased non-accruals and credit losses pressure asset quality. Still, regulatory changes that enhance funding flexibility and capital availability should provide some support to industry participants like Goldman Sachs BDC, Inc. (GSBD - Free Report) , Gladstone Investment Corporation (GAIN - Free Report) and Runway Growth Finance Corp. (RWAY - Free Report) .
About the Industry The Zacks SBIC & Commercial Finance industry comprises companies that provide finance to small and mid-sized privately held developing firms. These firms are typically underserved by traditional banks and other lenders. Firms suffering from financial distress are the primary target clients of these lenders. The industry players provide customized financing solutions, ranging from senior debt instruments to equity capital. This financing is provided for change of ownership transactions, buyouts, recapitalizations and growth initiatives in partnership with business owners, management teams and financial sponsors, among others. Some of the other products offered by the industry participants are mezzanine loans that typically pay high interest rates and can be converted into equity in the target firm.
3 Themes to Influence the SBIC & Commercial Finance Industry Higher Interest Rates: The Federal Reserve raised interest rates by 25 basis points for the first time in more than three years amid persistently high inflation and geopolitical concerns. The higher-rate environment is generally favorable for SBIC and Commercial Finance industry players, given that a significant portion of their investment portfolios consists of floating-rate loans. As benchmark rates rise, yields on these investments typically reset higher, supporting net investment income. Though higher rates could temper leveraged buyout activity, loan originations and refinancing volumes, resilient economic activity and a more stable dealmaking environment are expected to offer support. Overall, higher portfolio yields, disciplined underwriting and improving deployment opportunities are expected to boost net investment income and the financial performance of industry participants.
Regulatory Changes: In 2018, an amendment to the Investment Company Act of 1940 by the Small Business Credit Availability Act eased leverage limits for such companies, allowing them to increase their debt-to-equity leverage to 2:1 from 1:1. This helped these companies reduce portfolio risks by investing in higher capital structures without forgoing current returns. The act provided extra funding flexibility to these companies and will continue to offer more growth opportunities.
Asset Quality: Higher interest rates are likely to pressure asset quality for the SBIC and Commercial Finance industry players, which primarily lend to leveraged middle-market companies through floating-rate private credit investments. Rising debt-servicing costs will likely weaken borrowers’ interest coverage and liquidity, particularly among lower middle-market companies with limited financing flexibility. Broader concerns around private credit, including aggressive underwriting in some vintages, elevated leverage and refinancing risks, could further expose weaker credits. Persistent inflation and softer demand may also pressure portfolio-company cash flows, increasing restructurings and non-accruals. Although senior-secured exposure and disciplined underwriting provide some protection, prolonged restrictive conditions could lead to higher credit losses and weaker portfolio performance.
Zacks Industry Rank Shows Bright Prospects The Zacks SBIC & Commercial Finance industry is a 37-stock group within the broader Zacks Finance sector. The industry currently carries a Zacks Industry Rank #90, which places it in the top 36% of more than 245 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates outperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of an encouraging earnings outlook for the constituent companies in aggregate. Looking at aggregate earnings estimate revisions, it seems that analysts are gradually gaining confidence in this group’s bottom-line growth potential. Since May-end, the industry’s earnings estimates for 2026 have been marginally revised higher.
Before we present a handful of stocks well-positioned to benefit from the current operating backdrop, let’s examine the industry’s recent stock market performance and valuation picture.
Industry Underperforms Sector and S&P 500 The Zacks SBIC & Commercial Finance industry has underperformed the S&P 500 composite and its sector over the past two years.
The stocks in this industry have collectively lost 19.8% over this period, while the Zacks S&P 500 composite and the Zacks Finance sector have rallied 39.1% and 25.7%, respectively.
Two-Year Price Performance
Industry's Valuation One might get a good sense of SBIC & Commercial Finance industry’s relative valuation by looking at its price-to-tangible book ratio (P/TB), which is commonly used for valuing loan providers because of large variations in their earnings from one quarter to the next.
The industry currently has a trailing 12-month P/TB of 0.81X. The highest level of 1.04X, the lowest of 0.76X and a median of 0.92X have been recorded by the industry over the past five years. The industry is also trading at a massive discount compared with the market at large, as evidenced by the trailing 12-month P/TB for the S&P 500 composite of 10.10X, as the chart below shows.
Price-to-Tangible Book Ratio (TTM)
As finance stocks typically have a low P/TB ratio, comparing SBIC & commercial loan providers with the S&P 500 may not make sense to many investors. Hence, comparing the group’s P/TB ratio with its broader sector ensures that the group is trading at a solid discount. The Zacks Finance sector’s trailing 12-month P/TB of 5.93X is also well above the Zacks SBIC & Commercial Finance industry’s ratio, as shown below.
Price-to-Tangible Book Ratio (TTM)
3 SBIC & Commercial Finance Stocks to Bet on Goldman Sachs BDC: Headquartered in New York, GSBD primarily invests in U.S. middle-market companies through senior secured loans, including first-lien and unitranche debt, along with select equity investments. This Zacks Rank #1 (Strong Buy) company’s portfolio is highly defensive from a capital-structure standpoint, with 98.6% of investments comprising senior secured debt as of June 30, 2026, including 96.9% in first-lien investments. You can see the complete list of today’s Zacks #1 Rank stocks here.
Goldman Sachs BDC is expected to benefit from elevated interest rates, given that 98.9% of its performing debt investments carried floating rates as of June 30, 2026. The company had investments across 173 portfolio companies spanning 39 industries, providing meaningful diversification.
As of June 30, 2026, Goldman Sachs BDC’s investment portfolio had a fair value of $3.20 billion, while NAV was $12.06 per share. Its liquidity position remained solid, with $795.6 million of availability under its revolving credit facility and $50.7 million of cash and cash equivalents. Nonetheless, asset quality remains a key watchpoint, with investments in 10 portfolio companies on non-accrual status, representing 2.9% of the portfolio at fair value.
The company’s shares have rallied 6.9% over the past six months. The Zacks Consensus Estimate for 2026 and 2027 earnings has remained unchanged over the past seven days. GSBD has a market cap of $1.1 billion.
Price and Consensus: GSBD
Gladstone Investment: Headquartered in McLean, VA, GAIN primarily invests in lower middle-market U.S. companies through secured debt and equity securities. The company generally targets businesses with EBITDA of $5-$25 million and seeks to maintain a portfolio mix of roughly 70% debt and 30% equity at cost. As of June 30, 2026, its portfolio comprised 29 companies across 16 industries, with an aggregate fair value of nearly $1.3 billion.
Gladstone Investment is likely to benefit from elevated interest rates, as 100% of its performing debt investments were floating rate and indexed to SOFR as of June 30, 2026. The weighted-average yield on debt investments was 12.9%. During the fiscal first quarter, portfolio activity was muted, with no new investments and only $0.6 million deployed into existing portfolio companies.
As of June 30, 2026, Gladstone Investment’s portfolio had a fair value of $1.28 billion and NAV was $16.24 per share. The company had $247.4 million of availability under its $405-million credit facility, although adjusted availability based on collateral requirements was $163.2 million. Asset quality remains a key watchpoint, with three portfolio companies on non-accrual status, representing 5.5% of debt investments at cost and 1.8% at fair value. Further, $18.8 million of net unrealized depreciation during the quarter primarily reflected weaker performance at certain portfolio companies.
This Zacks Rank #1 company has a market cap of $630.4 million. Over the past six months, the company’s shares have gained 11.5%. Over the past week, the Zacks Consensus Estimate for earnings has remained unchanged for 2026 and 2027.
MCLEAN, VA / ACCESS Newswire / September 28, 2026 / Gladstone Investment Corporation (Nasdaq:GAIN) ("Gladstone Investment") is pleased to announce its continued investment in Detroit Defense ("DD"), providing additional debt and equity capital to support the company's merger with Athenix Solutions Group ("Athenix").
DD, based in Troy, Michigan, is an engineering services and systems integration firm focused on helping Department of War customers solve technical hurdles to modernizing, managing, and maintaining the fleet. Athenix, with primary locations in Fulton, Maryland and Tampa, Florida, brings systems engineering, software development, intelligence and cyber operations support, and special mission readiness for the Intelligence Community and Department of War, across special operations, cyber, and mission systems. The combination brings together two companies with complementary capabilities and customer-oriented cultures. "The Athenix team shares our approach: putting the mission first and solving complex problems through long duration, full lifecycle solutions," said Pete Roney, Chief Executive Officer of DD.
"The merger with Athenix is a highly strategic investment for DD and an important step in building out the platform to provide mission-critical services to the military and government communities," said Christopher Lee, Executive Vice President of Gladstone Investment.
Gladstone Investment is a publicly traded business development company that seeks to make equity and secured debt investments in lower middle market businesses in connection with acquisitions, changes in control, and recapitalizations. Additional information on the transaction can be found at www.gladstoneinvestment.com.
For Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.gladstone.com.
Forward-looking Statements:
The statements in this press release regarding the longer-term prospects of Gladstone Investment and DD and its management team, and the ability of Gladstone Investment and DD to grow and expand are "forward-looking statements." These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on Gladstone Investment's current plans that are believed to be reasonable as of the date of this press release, a number of factors could cause actual results and conditions to differ materially from these forward-looking statements, including those factors described from time to time in Gladstone Investment's filings with the Securities and Exchange Commission. Gladstone Investment undertakes no obligation to update or revise these forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
For further information: Gladstone Investment Corporation, (703) 287-5893
Not every monthly dividend holds up when rates bite and tenants wobble, but this September shortlist spans four separate income engines that have each raised or held their payouts over the past year without leaning on the same cash flow…
Boomer income investors want one thing above the rest: reliable checks that land every month. This September lineup spreads that mandate across four distinct income engines: net-lease retail, industrial warehouses, lower-middle-market private credit, and buyout-focused private credit. The anchor stat that frames the group: Realty Income just declared its 136th common stock monthly dividend increase on September 8, 2026, and every name below has either raised or held its distribution over the trailing twelve months.
Realty Income (O) Realty Income (NYSE:O) yields 5.71% at a recent price of $56.51, with a $0.2715 monthly payout most recently raised for the September 30, 2026 ex-date. Coverage is the reason the check clears: Q2 2026 AFFO per share of $1.09, up 3.8% year over year, easily funds the annualized $3.252 dividend, and full-year 2026 AFFO guidance was raised to $4.44 to $4.45. The balance sheet carries a Fitch ‘A’ rating with Stable Outlook and Net Debt/EBITDAre of 5.4x, and Q2 marked the 115th consecutive quarterly dividend increase.
Bull case: portfolio occupancy sits at 98.8%, the company invested $2.6 billion in Q2 at a 7.3% initial cash yield, and a $6 billion hyperscale data center joint venture plus the newly announced Euro-denominated joint venture with KKR extend the growth runway beyond traditional retail. Risk: 65.7% of annualized base rent comes from non-investment-grade tenants, and leverage ticked up from 5.2x.
Agree Realty (ADC) Agree Realty (NYSE:ADC) yields 4.62% at $67.34, paying a monthly dividend of $0.267 that was raised from $0.262 earlier in 2026 and has not been cut across the trailing twelve months. Q2 2026 AFFO per share of $1.14, up 7.4% year over year, more than covers the payout, and management raised full-year AFFO guidance to $4.57 to $4.59. The portfolio is arguably the cleanest in net lease: 2,825 properties across all 50 states and DC, 99.8% occupied, with 73.2% of ABR from investment-grade tenants.
Bull case: record Q2 acquisitions of $501.7 million at a 7.0% cap rate with an 11.2-year weighted average lease term, $1.9 billion in liquidity, and a net debt/EBITDA of 5.2x (3.7x proforma). Risk: interest expense climbed to $40.3 million versus $32.3 million a year ago, and equity-funded acquisitions produced a Q2 EPS miss.
STAG Industrial (STAG) STAG Industrial (NYSE:STAG) yields 4.04% at $37.33 and pays monthly, with an approximately $0.1292 monthly distribution ($0.3875 quarterly rate). The dividend was held across the trailing twelve months. Coverage comes from Core FFO: Q2 2026 Core FFO per share of $0.65, up 3.2% year over year, alongside same-store cash NOI growth of 3.4%. Balance sheet health: Net Debt/EBITDAre of 5.2x after refinancing $350 million of term loans out to January 2032.
Bull case: pricing power in single-tenant warehouses remains stout, with cash rent change of +19.8% and straight-line +33.7%, a fourth consecutive EPS beat, and an acquisition pipeline of 145 buildings, $4 billion, 35.1 million square feet. Risk: total portfolio occupancy of 94.5% trails operating occupancy, and interest expense rose to $37.5 million versus $33.6 million.
Main Street Capital (MAIN) Main Street Capital (NYSE:MAIN | MAIN Price Prediction) yields 5.49% at $56.03, and that figure understates the cash flow: the regular monthly payout stepped up from $0.255 in late 2025 to $0.265 beginning with the October 2026 ex-dividend date, and a supplemental dividend of $0.30 per share payable in September was declared, marking the 20th consecutive quarterly supplemental. Coverage read: Q2 2026 DNII before taxes per share of $1.08 against a monthly payout run rate that leaves room to spare, and annualized ROE of 18.9%. Trailing supplemental distributions totaled $1.20 per share, representing an additional 38% paid to shareholders in excess of regular monthly dividends.
Bull case: non-accruals at 1.1% of fair value, a $1.24 billion corporate facility extended to June 2031, and management said it currently anticipated proposing an additional significant supplemental dividend payable in December 2026. Risk: management flagged increased cost of capital following the refinancing of the July 2026 notes and guided Q3 DNII before taxes to be at least $0.97 per share, a step down from Q2’s non-recurring boost.
Gladstone Investment (GAIN) Gladstone Investment (NASDAQ:GAIN) is the smallest and least liquid name here, with a market cap of just $648 million and shares recently at $15.80. It is the only ultra-high-yield entry in the group, yielding 6.06% on a monthly distribution held at $0.08 per share for the full trailing twelve months. Coverage: fiscal Q1 2027 Adjusted NII per share of $0.26, which management said was "sufficient to cover the monthly dividend distributions for the quarter." Spillover income climbed to $22.5 million, or $0.56 per share, an additional cushion behind the payout.
Bull case: 100% of debt investments are variable rate indexed to 30-day SOFR, the portfolio weighted average yield is 12.9%, and management expects a "very significant capital gain" from the pending SFEG Holdings sale that could seed a future supplemental. The credit facility was expanded to $405 million with maturity extended to June 2031. Risk: NAV per share slipped to $16.24, down 3.2% sequentially from $16.78, three portfolio companies sit on non-accrual, and the small float means volatility can spike quickly.
Bottom Line This is what monthly-pay diversification actually looks like: two blue-chip net-lease REITs with investment-grade tenants, a warehouse landlord riding double-digit re-leasing spreads, an internally managed BDC compounding through supplementals, and a small-cap buyout BDC with capital-gains optionality. Every name has raised or held its distribution over the last year, each is covered by the right metric (AFFO for the REITs, Core FFO for STAG, DNII and NII for the BDCs), and together they cover four distinct cash-flow engines rather than four flavors of the same one. For income-focused Boomers building a monthly paycheck ladder, that breadth is the whole point.
Contact [email protected] for any questions or corrections.
MCLEAN, VA / ACCESS Newswire / September 16, 2026 / Gladstone Investment Corporation (Nasdaq:GAIN) ("Gladstone Investment") is pleased to announce its continued investment in Global GRAB Technologies, Inc. ("Global GRAB"), providing additional capital to support the acquisition of Barrier1 Systems, LLC ("Barrier1").
Global GRAB, headquartered in Franklin, Tennessee, is a leading provider of physical perimeter security and hostile vehicle mitigation solutions serving military installations, government facilities, critical infrastructure, transportation, utility, commercial and other high-security environments. Barrier1, headquartered in Greensboro, North Carolina, is a leading U.S. manufacturer of engineered anti-ram vehicle barrier systems. Founded in 2006, Barrier1's portfolio includes crash-rated bollards, drop and swing arms, wedge barriers, crash beams and vehicle arrestor net systems designed to address a broad range of perimeter security requirements across high-security and mission-critical applications.
The acquisition meaningfully expands Global GRAB's portfolio of engineered and crash-rated perimeter security products and adds complementary engineering and U.S.-based manufacturing capabilities. Alongside the recent acquisition of RSSI Barriers, Barrier1 represents another significant step in Global GRAB's strategy to expand its product portfolio and further strengthen its position as a holistic provider of perimeter security and facility-hardening solutions.
Together, Global GRAB, Barrier1 and RSSI offer customers a broader suite of crash-rated vehicle barriers, less-than-lethal technologies, perimeter reinforcement systems, intelligent detection solutions, integrated access control products, and engineering, integration, installation, service and lifecycle support capabilities for high-security perimeter and facility protection applications.
"Barrier1 has built a highly respected business with a strong portfolio of both tested and engineered products, deep technical expertise and a longstanding commitment to protecting critical facilities and infrastructure," said Brian Cooper, President of Global GRAB's Engineering and Infrastructure Solutions division. "We're excited to bring Barrier1 into the Global GRAB family of brands and combine the strengths of our teams to offer customers an even broader range of products and capabilities across the perimeter security market."
"Barrier1 is a great strategic fit with Global GRAB and meaningfully expands both our product portfolio and manufacturing capabilities," said Mark Horne, Chief Executive Officer of Global GRAB. "The combination strengthens our ability to provide comprehensive solutions to customers with increasingly complex perimeter security and facility-hardening requirements."
"Barrier1 is a highly strategic acquisition for Global GRAB and another important step in expanding the platform's product portfolio and capabilities," said Michael Cueter, Managing Director at Gladstone Investment. "Barrier1 brings a well-recognized brand, a broad portfolio of engineered and crash-rated products, strong U.S.-based manufacturing capabilities, and longstanding customer relationships across demanding high-security environments. We are excited to continue supporting the Global GRAB team as they expand the platform's capabilities and ability to provide comprehensive perimeter security and facility-hardening solutions to customers protecting critical infrastructure and national assets."
Gladstone Investment is a publicly traded business development company that seeks to make equity and secured debt investments in lower middle market businesses in connection with acquisitions, changes in control and recapitalizations. Additional information on Gladstone Investment can be found at www.GladstoneInvestment.com.
For Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.Gladstone.com.
Forward-looking Statements:
The statements in this press release regarding the longer-term prospects of Gladstone Investment, Global GRAB, Barrier1 and their management teams, and the ability of Gladstone Investment, Global GRAB and Barrier1 to grow and expand are "forward-looking statements." These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on Gladstone Investment's current plans that are believed to be reasonable as of the date of this press release, a number of factors could cause actual results and conditions to differ materially from these forward-looking statements, including those factors described from time to time in Gladstone Investment's filings with the Securities and Exchange Commission. Gladstone Investment undertakes no obligation to update or revise these forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
For further information: Gladstone Investment Corporation, (703) 287-5893
Rental income sounds appealing until a pipe bursts at midnight and your tenant stops paying rent. Three monthly dividend stocks offer a smarter path to serious passive income without a single maintenance call.
Real estate has long been the default answer for investors chasing monthly cash flow, but landlords learn quickly that rental income comes bundled with plumbing calls, vacancies, and a title that can take months to sell. High-yield dividend stocks solve for the same objective without the drag. Positions can be trimmed, rebalanced, or exited during any market session, and the checks still arrive on a monthly schedule from the right names.
That flexibility is the case for building a passive income sleeve around three monthly payers. Putting $25,000 into each of three high-yield stocks, a total commitment of $75,000, would generate more than $7,500 in annual passive income at current prices and forward payout rates. Here is what a $25,000 stake in each of these three high-yield names would produce in yearly distributions.
The roster mixes two Gladstone-family business development companies with one of the largest mortgage REITs in the market. The structural distinction matters. BDC income flows from pass-through interest on private credit lending, while a mortgage REIT captures the spread between short-term borrowing costs and the yield on Agency mortgage-backed securities. Different engines, different sensitivities, one shared feature: monthly cash (we rounded up seven of our favorite every-30-days payers in a free report on monthly dividend stocks if you want to widen the shortlist). All yields shown are forward yields.
Gladstone Investment Stock #3: Gladstone Investment (NASDAQ:GAIN) Yield: 6.04% Shares for $25,000: 1,574.31 Annual Passive Income: ~$1,511 Gladstone Investment is a buyout-focused BDC that makes debt and equity investments in lower middle market companies. Interest on senior secured loans supports the base monthly payout, while equity co-investments layer in periodic supplemental distributions when portfolio companies exit.
The yield premium is structural. BDCs elect regulated investment company status, which requires distributing at least 90% of taxable income to shareholders, producing pass-through cash flow. GAIN pays $0.08 monthly, or $0.96 per share on an annual basis. Q1 FY2027 adjusted net investment income was $0.26 per share, comfortably covering the $0.24 quarterly distribution. The portfolio’s weighted average yield was 12.9%, with 100% of debt investments variable rate indexed to 30-day SOFR.
Management increased the facility commitment from $300 million to $405 million with a 2031 maturity, and flagged a “very significant capital gain” expected from the pending SFEG Holdings exit, which sets up another supplemental distribution.
Gladstone Capital Stock #2: Gladstone Capital (NASDAQ:GLAD) Yield: 11.10% Shares for $25,000: 1,284.69 Annual Passive Income: ~$2,775 Gladstone Capital is the credit-focused sister BDC in the Gladstone family, lending primarily through secured first lien debt to lower middle market companies. Interest income and prepayment fees drive the monthly distribution.
Same 90% distribution requirement, same pass-through economics, but the higher headline yield reflects a pure-debt orientation and a recent payout raise. The September monthly dividend stepped up to $0.18, taking the annualized forward dividend to $2.16 per share. Q3 FY2026 net investment income of 49 cents per share represented 109% of cash distributions per common share, and the portfolio’s weighted average debt yield was unchanged at 11.8%. First-lien debt represented 71% of the portfolio at cost.
Non-earning investments ticked up to five companies totaling $26.7 million or 3.1% of debt investments at fair value, a data point income holders should monitor. Management sees originations of 75 plus or minus million a quarter supporting the run rate.
AGNC Investment Stock #1: AGNC Investment (NASDAQ:AGNC | AGNC Price Prediction) Yield: 14.2% Shares for $25,000: 2,487.56 Annual Passive Income: ~$3,582 AGNC holds a $97 billion portfolio of Agency mortgage-backed securities guaranteed by U.S. government-sponsored enterprises. It funds those holdings with short-term repo borrowings and hedges the interest-rate exposure. Earnings are the leveraged spread between MBS yields and financing costs, an entirely different animal from rent collection.
That model is why the payout tops 14%. REITs must distribute at least 90% of taxable income, and applying 7.4 times tangible equity of leverage to a wide MBS-to-swaps spread magnifies distributable cash. Q2 2026 EPS of $0.40 covers the $0.36 quarterly dividend, and net spread and dollar-roll income totaled 40 cents per common share for the quarter. Tangible net book value per share $8.58 (up 2.4% in Q2), and economic return on tangible common equity was 6.7% for the quarter.
Book value sensitivity is the catch. Rate volatility and MBS spread widening can compress NAV quickly, as the negative 1.6% Q1 economic return illustrated. Management estimated marginal investments generate 15 to 17% range returns on equity at current spreads, which CEO Peter Federico said “aligns really well with the economics of our dividend.”
Income Snapshot at $25,000 per Position Name Yield Annual Dividend Income Gladstone Investment 6.04% $1,511 Gladstone Capital 11.10% $2,775 AGNC Investment 14.33% $3,582 Total 10.49% $7,868 Combined, these three positions generate $7,868 in annual passive income on a $75,000 investment, a blended yield of 10.49%. Gladstone Investment contributes $1,511, Gladstone Capital adds $2,775, and AGNC Investment rounds out the group with $3,582.
The advantage of building income this way is optionality. A landlord who needs cash cannot sell a single bedroom of a rental property, while a dividend investor can trim any of these three positions in a single click and still keep the monthly distributions landing. Reinvesting those distributions during periods of price weakness compounds the share count and lifts forward income without a fresh capital contribution.
Contact [email protected] for any questions or corrections.
Ordinary dividends from BDCs, net-lease REITs, and foreign shippers carry a tax cost that hits every single distribution cycle without relief, and where you hold these positions determines whether that cost is permanent or entirely avoidable.
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At the 24% federal bracket, a portfolio kicking off $50,000 in ordinary dividend income hands roughly $12,000 to the IRS every year, before state taxes touch it. BDCs, net-lease REITs, and foreign shipping names distribute the bulk of their income as ordinary (non-qualified) dividends, so that annual tax drag never softens. It repeats every distribution cycle, forever.
The five names below all fall into that category, which is exactly why they belong in the Roth conversation.
Five Ordinary-Dividend Payers Built for Roth Placement Gladstone Capital (NASDAQ:GLAD) yields 9.52% at $19.48 per share, paying monthly. The lower middle market BDC raised its distribution to $0.18 per share on the September ex-date, with a $2.16 forward annualized figure. BDC payouts are ordinary income. Gladstone Investment (NASDAQ:GAIN): 5.98% base yield at $15.90, plus periodic supplemental capital-gains distributions. The most recent supplemental was $0.54 per share on the June 2025 ex-date. Chicago Atlantic BDC (NASDAQ:LIEN): 13.4% yield at $10.14. Quarterly $0.34 dividend, portfolio gross weighted-average yield of 15.8%, zero non-accruals, 100% senior secured. Gladstone Commercial (NASDAQ:GOOD): 9.39% yield at $12.71. Monthly $0.10 distribution from a net-lease REIT, taxed as ordinary income under Section 199A pass-through rules. Seanergy Maritime (NASDAQ:SHIP): 4.82% trailing yield at $18.41, with a variable quarterly dividend tied to Capesize freight rates. The latest declaration lifted to $0.35 per share. Marshall Islands domicile means U.S. holders receive ordinary treatment. Roth Versus Taxable: The Dollar Gap Take a $500,000 position in a stock or blended basket yielding 8%. That generates $40,000 in gross dividend income annually. Held in a taxable brokerage account at the 24% bracket, the after-tax figure drops to $30,400 after $9,600 goes to the IRS. Held inside a Roth IRA, the full $40,000 stays.
Scenario Gross Tax at 24% Net Income Taxable brokerage $40,000 $9,600 $30,400 Roth IRA $40,000 $0 $40,000 Annual Roth advantage: $9,600. Straight-line 10-year Roth advantage on this one position, without any reinvestment or price appreciation: $96,000.
Bracket Multiplier: Why the Gap Widens Higher Up The higher your marginal rate, the more urgent the Roth placement decision becomes. Applied to the same $40,000 gross:
Federal Bracket Taxable Net Annual Roth Advantage 22% $31,200 $8,800 24% $30,400 $9,600 32% $27,200 $12,800 37% $25,200 $14,800 The 24% bracket applies to single filers with taxable income between $103,351 and $197,300 in 2025, and the 37% top rate begins above $626,350. Married filing jointly, the 24% band runs $206,701 to $394,600.
What Most Readers Miss: The Compounding Layer Inside a Roth, that $9,600 gets reinvested and produces its own dividends, which get reinvested again, without a single dollar of tax friction along the way. In a taxable account, each year’s dividend and each year’s reinvested dividend gets taxed at ordinary rates before it can compound. Over 10 and 20 years, the gap runs into multiples of the annual figure, and the higher your bracket, the wider it opens. (The cheapest years to move ordinary-income assets into a Roth are usually the quiet ones between your last paycheck and your first RMD, which is the whole subject of our free Roth conversion guide: here.)
For context, the 10-year Treasury yields 4.95%, so the ordinary-dividend spread these names offer above the risk-free rate is meaningful only if you actually keep it.
Concrete Actions If you hold GLAD, GAIN, LIEN, GOOD, SHIP, or any other BDC, REIT, or foreign shipping name in a taxable account, calculate your annual tax cost at your bracket before your next tax filing. Run the Roth conversion math on the specific ordinary-dividend positions above before assuming the up-front conversion tax outweighs the recurring annual delta. If a phased conversion is on the table, start with the highest-yielding ordinary-dividend names in your book, where the annual tax drag per dollar invested is largest. Contact [email protected] for any questions or corrections.
Five high-yield names have ex-dividend dates landing between September 21 and September 25, and the window to qualify for the next payment is closing by the day. Miss the cutoff and the seller keeps the cash, so knowing which names…
Income investors have a short window this month. The dividend calendar shows five high-yield names with confirmed ex-dividend dates between September 21 and September 25, 2026, and once those dates pass, the upcoming payment goes to the prior owner. Three Gladstone-family monthly payers share a September 21 ex-date, while a cannabis-focused BDC and a Capesize dry-bulk shipper both go ex on September 25.
For some quick background, to receive any of these upcoming dividends you must own the shares before the ex-dividend date. Buy on or after the ex-date and the seller keeps that payment. Pay date is when cash actually hits the account, which is separate.
Gladstone Capital (GLAD) Gladstone Capital (NASDAQ:GLAD) is a lower middle-market BDC with a market cap of roughly $439 million and a recent price of $19.47. The next monthly common dividend of $0.15 per share carries a confirmed ex-date of September 21, 2026, with payment on September 30. Indicated annual dividend is $1.80. To capture it, shares must be owned before September 21, meaning the last practical buy day is Friday, September 18.
Fiscal Q3 2026 net investment income came in at $0.49 per share, comfortably above the $0.45 quarterly run rate of the base monthly dividend. One quick caution is that non-earning investments rose to five companies totaling $26.7 million, or 3.1% of debt investments at fair value, worth watching if credit softens.
Gladstone Commercial (GOOD) Gladstone Commercial (NASDAQ:GOOD) is a net-lease REIT with an industrial tilt, market cap around $605 million and a recent quote of $12.76, up 27.67% year to date. The next monthly dividend of $0.10 per share has a confirmed ex-date of September 21, 2026 and pay date September 30; indicated annual is $1.20. Last buy day to capture this one is September 18.
Q2 fiscal 2026 adjusted Core FFO was $0.38 per diluted share, though that included a one-time lease termination fee, so treat it as flattered. Occupancy at 98.7% across 151 properties with 100% cash rent collection through July supports the current $0.10 monthly cadence, which has been unchanged since January 2023. (If a 30-day payment schedule is the whole appeal here, we rounded up seven of our favorite monthly payers in a free report.)
Gladstone Investment (GAIN) Gladstone Investment (NASDAQ:GAIN) is a buyout-focused BDC, market cap about $637 million and last quote $15.95. The next monthly dividend of $0.08 per share has a confirmed ex-date of September 21, 2026, pay date September 30, and an indicated annual of $0.96. Same deadline: own before September 21.
Adjusted NII for fiscal Q1 2027 was $0.26 per share versus a $0.24 quarterly obligation on the monthly dividend, so coverage is tight but positive. GAIN often supplements with capital-gains distributions when portfolio exits close; the expected exit from SFEG Holdings in Q3/Q4 CY2026 is worth tracking. NAV per share slipped to $16.24, down 3.2% quarter over quarter, on unrealized depreciation and a realized loss.
Chicago Atlantic BDC (LIEN) Chicago Atlantic BDC (NASDAQ:LIEN) is a cannabis- and lower middle-market-focused BDC with a market cap near $232 million and a dividend yield of 13.3%. The quarterly dividend of $0.34 per share has a confirmed ex-date of September 25, 2026, pay date October 9, and indicated annual of $1.36. Last buy day is Thursday, September 24.
Q1 2026 NII came in at $0.44 per share against a $0.34 quarterly payout. The portfolio is 100% senior secured with zero non-accruals, weighted-average yield of 15.8%, and GAAP leverage of just 8.2%. The concentration to watch is real: 76% cannabis exposure. Shares trade at 0.769x book, reflecting that risk.
Seanergy Maritime Holdings (SHIP) Seanergy Maritime Holdings (NASDAQ:SHIP) is a pure-play Capesize dry-bulk shipper, market cap around $395 million and recent price $18.44, up 106.09% year to date. The Q2 quarterly dividend of $0.35 per share has a confirmed ex-date of September 25, 2026 and pay date October 9. Indicated annual is $0.80, but note the payment is highly variable with rates: prior quarters were $0.20 and $0.20.
Q2 2026 adjusted EPS reached $1.32, and fleet TCE ran $32,355 per day at 97.3% utilization. Sustainability is the key caveat: Capesize rates are cyclical, working capital sat at a $8.6 million deficit as of June 30, and 78% of revenue came from three charterers. Q3 guidance points to a slightly softer TCE near $31,000 per day.
Committed View On coverage quality alone, LIEN stands out: NII covers the payout with material cushion, the book is 100% senior secured, leverage is low, and the yield is genuinely high without a collapsing share price behind it. Among the Gladstone trio, GLAD offers the most straightforward NII cushion on the base monthly. SHIP is the highest-conviction cash generator today but the most cyclical, so treat this payment as tied to a strong rate quarter rather than a steady annuity. Chasing a single distribution rarely qualifies as a strategy, and once September 21 or September 25 arrives, the payment is off the table for new buyers.
Contact [email protected] for any questions or corrections.
MCLEAN, VA / ACCESS Newswire / September 10, 2026 / Gladstone Investment Corporation (NASDAQ:GAIN) (the "Company") is pleased to announce that it hosted its annual Investor Day in Tampa, Florida on September 9, 2026.
Members of the Company's management team provided an overview of GAIN's investment strategy, portfolio, financial performance and outlook. The Investor Day presentation was previously made available and remains accessible in the Presentations section of the Company's website at www.gladstoneinvestment.com/investors/company-information/presentations.
"We are grateful to the members of the investor community who joined us and contributed to a thoughtful and engaging discussion," said David Dullum, Chief Executive Officer and President of the Company. "We also thank our portfolio company leaders for their participation and for providing valuable perspectives on their businesses and partnership with GAIN."
About Gladstone Investment Corporation: Gladstone Investment is a publicly traded business development company that seeks to make equity and secured debt investments in lower middle market businesses in connection with acquisitions, changes in control, and recapitalizations. Information on the business activities of all the Gladstone funds can be found at www.gladstonecompanies.com.
Investor Relations Inquiries: Please visit www.gladstonecompanies.com or (703) 287-5893.
Investors in Gladstone Investment Corporation (GAIN - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Oct 16, 2026 $2.5 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Gladstone Investment shares, but what is the fundamental picture for the company? Currently, Gladstone Investment is a Zacks Rank #1 (Strong Buy) in the Financial - SBIC & Commercial Industry that ranks in the Top 36% of our Zacks Industry Rank. Over the last 30 days, no analysts have increased their earnings estimates for the current quarter, while two analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 23 cents per share to 22 cents in that period.
Given the way analysts feel about Gladstone Investment right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Monthly dividend stocks promise 12 paychecks a year, but some of those checks quietly shrink while others quietly grow. Five popular names reveal just how different a monthly payout can look once coverage and capital preservation lead the analysis.
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Monthly dividend stocks look like a retiree’s dream on the surface: 12 paychecks a year instead of four. The problem is that the monthly-payer universe leans heavily on business development companies and mortgage REITs, where a generous headline yield frequently sits on top of eroding book value or share issuance. A quick reality check: AGNC’s monthly dividend was 0.16 per share in early 2020 and sits at 0.12 today, a reminder that a steady monthly check can quietly shrink over time. Here is how five popular monthly payers score when coverage and capital preservation lead the analysis.
Realty Income: The Benchmark for Monthly Durability Realty Income (NYSE:O | O Price Prediction) is the reference case for a covered monthly payout. Shares closed at $61.25 on September 4, 2026, with the trailing yield near 5.24%. The current monthly rate is $0.271 per share, with the next payment scheduled for September 15, 2026.
Management raised 2026 AFFO/share guidance to $4.44 to $4.45, which comfortably covers the $3.252 annualized dividend. Portfolio occupancy sits at 98.8%, rent recapture ran 102.7%, and the balance sheet carries a Fitch A rating with a Stable Outlook. This is a net-lease REIT paying investors from rent checks, not from share issuance. Realty Income has also just posted its 115th consecutive quarterly dividend increase.
Bull case for income buyers: a diversified, investment-grade-anchored real-estate portfolio with a payout that grows in small monthly steps and a decade of price-plus-dividends returns; the stock is up 51.37% over ten years and 12.47% year to date. Risk: 65.7% of annualized base rent comes from non-investment-grade tenants, and higher long rates (the 10-year Treasury is at 4.77%) tighten the spread between REIT yields and risk-free income.
Agree Realty: Lower Yield, Higher-Quality Rent Roll Agree Realty (NYSE:ADC) trades at $72.62 with a yield of about 4.32%. The current monthly dividend is $0.267 per share, with an annualized forward figure of $3.204.
2026 AFFO/share guidance was raised to $4.57 to $4.59, well ahead of the annualized common dividend run rate. Portfolio quality is the differentiator: occupancy of 99.8% across 2,825 properties, 73.2% of annualized base rent from investment-grade retail tenants, credit and occupancy loss of just 0.06%, and Net Debt/EBITDA of 5.2x (3.7x proforma). The payout is being funded by rent from tenants that overwhelmingly carry investment-grade credit, not by leverage.
Bull case: a fortress net-lease book compounding at a 7.0% cap rate on Q2 acquisitions with an 11.2-year weighted average lease term, and a stock that has returned 125.68% over ten years. Risk: Q2 interest expense rose to $40.3 million from $32.3 million, and the $686 million forward equity raised in the first half of 2026 means new shares are helping fund growth, which dilutes per-share results near term.
Main Street Capital: A BDC That Consistently Earns Its Payout Main Street Capital (NYSE:MAIN) is a business development company, meaning it lends to and invests equity in private lower-middle-market businesses. That is credit risk to non-rated borrowers, and it must be named plainly. What separates Main Street from most peers is that its regular monthly payout has been earned, not stretched.
Shares were last trading around $58, yielding about 5.32%. The regular monthly dividend is $0.265 per share, and the company has declared a $0.30 supplemental payable in September, its 20th consecutive quarterly supplemental. Q2 adjusted EPS came in at $1.04, comfortably covering three monthly checks and helping fund the supplemental. NAV/share rose to $33.92, annualized ROE was 18.9%, and non-accruals sit at just 1.1% of fair value.
Bull case: an internally managed BDC (operating cost ratio of 1.3% annualized) with a growing external asset-management arm and a distribution funded by actual net investment income plus realized gains, including roughly $88 million of realized gains from three lower-middle-market exits over the last three quarters. Risk: falling short-rate expectations pressure a floating-rate loan book, and management guided Q3 DNII before taxes to at least $0.97 per share, below Q2. The stock is also down 6.66% over the last year, a reminder that BDC prices swing with credit sentiment.
AGNC Investment: The Fragile Name in the Bundle This is the cautionary example. AGNC Investment (NASDAQ:AGNC) is an agency mortgage REIT, not an equity REIT. It borrows short, buys government-guaranteed mortgage-backed securities, and runs leverage of 7.4 times tangible equity. There is no credit risk on the collateral, but there is enormous interest-rate and spread risk on the balance sheet, and book value moves accordingly.
Shares trade just over $10, the trailing yield is 13.5%, and management touts 75 consecutive monthly dividend payments of 12 cents per share. The reality is that the payout was 0.16 per share in early 2020, 0.18 before that, 0.20 in 2015 to 2017, and higher still going back further. Tangible net book value per share is $8.58, versus a stock price above that mark, and Q1 2026 saw a -1.6% economic return and a 5.6% NAV decline. When mortgage spreads widen or rates spike, book value falls and the dividend is repeatedly reset lower.
What income investors need to hear plainly: on a leveraged mortgage REIT, a portion of what feels like income can effectively be a return of capital when book value erodes faster than the payout compounds. The 13.5% yield is why AGNC qualifies as ultra-high-yield in this group; it is also why it belongs in the fragile bucket. Bull case: a 6.7% economic return in Q2 and mortgage spreads near the middle of a 120 to 160 basis point range that management considers attractive. Risk: the payout has been cut multiple times through prior rate cycles and the same mechanics still apply.
Gladstone Investment: Small BDC, Big Reliance on Realized Gains Gladstone Investment (NASDAQ:GAIN) is a small-cap BDC focused on lower-middle-market buyouts, and again, that means credit risk to private borrowers plus equity risk on control stakes. Shares trade at $16.40, up 22.46% year to date, with a yield of about 5.86%.
The regular monthly distribution has held at $0.08 per share, and fiscal Q1 2027 adjusted NII came in at $0.26 per share, comfortably covering three monthly checks. The color, however, matters. NAV/share slipped to $16.24, down 3.2% sequentially, on $18.8 million of unrealized depreciation and a $9.0 million realized loss on the Home Concepts restructuring. Gladstone’s periodic supplemental distributions have been meaningful ($0.54, $0.70, and $0.88 special payments in 2025, 2024, and 2023 respectively), but they depend on exiting equity positions at gains, which is inherently lumpy.
Bull case: an equity-participation model with a weighted average yield on interest-bearing investments of 12.9% and a pending SFEG Holdings exit expected to produce a sizable realized gain later this year. Risk: this is a $648 million market-cap BDC with a concentrated portfolio, and the recent NAV drop is exactly the kind of capital slippage that offsets a monthly check.
Bottom Line Screened for coverage rather than headline yield, Realty Income and Agree Realty look the most durable, both funding monthly dividends out of rent from largely investment-grade tenants with AFFO guidance well above the payout. Main Street sits close behind, an internally managed BDC that has consistently earned its regular monthly dividend and layered on supplementals from realized gains. Gladstone is workable but concentrated, and its supplementals depend on lumpy equity exits. AGNC is the reminder that a leveraged mortgage REIT with a 13.5% yield and a history of dividend cuts is a different animal from an equity REIT collecting rent, no matter how many months in a row the check has cleared. If you want to go deeper on the payers that arrive every 30 days, we rounded up seven of our favorites in a free report on monthly dividend stocks.
Contact [email protected] for any questions or corrections.
Gladstone Investment Corporation (NASDAQ:GAIN – Get Free Report)’s stock price passed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $15.38 and traded as high as $16.59. Gladstone Investment shares last traded at $16.39, with a volume of 94,755 shares trading hands.
Wall Street Analysts Forecast Growth Several equities analysts have recently weighed in on the company. B. Riley Financial raised Gladstone Investment from a “neutral” rating to a “buy” rating and boosted their target price for the company from $14.50 to $16.50 in a research report on Thursday, May 14th. Weiss Ratings downgraded Gladstone Investment from a “buy (b+)” rating to a “buy (b)” rating in a research report on Monday, August 17th. Wall Street Zen raised shares of Gladstone Investment from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Zacks Research raised shares of Gladstone Investment from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, August 12th. Finally, Oppenheimer boosted their price objective on shares of Gladstone Investment from $15.00 to $17.00 and gave the company an “outperform” rating in a research report on Thursday, May 14th. One investment analyst has rated the stock with a Strong Buy rating and three have assigned a Buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Buy” and an average target price of $16.75.
Read Our Latest Analysis on GAIN
Gladstone Investment Stock Down 0.6% The stock’s 50 day moving average price is $16.07 and its 200-day moving average price is $15.38. The stock has a market capitalization of $652.65 million, a PE ratio of 3.92 and a beta of 0.77. Gladstone Investment (NASDAQ:GAIN – Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The investment management company reported $0.26 EPS for the quarter, topping the consensus estimate of $0.22 by $0.04. Gladstone Investment had a net margin of 158.95% and a return on equity of 5.90%. The company had revenue of $28.36 million for the quarter, compared to the consensus estimate of $25.75 million. As a group, sell-side analysts predict that Gladstone Investment Corporation will post 1 earnings per share for the current fiscal year.
Gladstone Investment Dividend Announcement The business also recently announced a monthly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st will be paid a $0.08 dividend. This represents a c) dividend on an annualized basis and a yield of 5.9%. The ex-dividend date is Monday, September 21st. Gladstone Investment’s dividend payout ratio is currently 22.97%.
Institutional Trading of Gladstone Investment Several institutional investors and hedge funds have recently modified their holdings of the stock. Kestra Advisory Services LLC purchased a new stake in shares of Gladstone Investment in the fourth quarter valued at approximately $26,000. International Assets Investment Management LLC purchased a new position in Gladstone Investment during the 4th quarter worth $31,000. JPMorgan Chase & Co. increased its holdings in Gladstone Investment by 960.8% during the 2nd quarter. JPMorgan Chase & Co. now owns 5,304 shares of the investment management company’s stock worth $76,000 after purchasing an additional 4,804 shares during the period. Quantbot Technologies LP bought a new stake in Gladstone Investment during the 2nd quarter valued at $105,000. Finally, Bank of America Corp DE raised its position in Gladstone Investment by 272.1% during the 3rd quarter. Bank of America Corp DE now owns 8,946 shares of the investment management company’s stock valued at $124,000 after purchasing an additional 6,542 shares in the last quarter. Institutional investors own 11.85% of the company’s stock.
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Gladstone Investment (NASDAQ: GAIN) is a publicly traded business development company (BDC) that focuses on providing debt and equity financing to U.S. middle-market companies. As an externally managed closed-end fund, Gladstone Investment seeks to generate current income and capital appreciation for its shareholders by originating senior secured debt, subordinated debt and equity investments. The firm typically targets established businesses with revenues between $10 million and $150 million, across a range of industry sectors including business services, health care, industrials and specialty manufacturing.
The company’s investment strategy centers on deploying capital through first-lien and second-lien term loans, mezzanine debt and equity co-investments, often including warrants or other equity kickers.
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Gladstone Investment (GAIN - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Gladstone Investment basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Gladstone Investment, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Gladstone InvestmentFor the fiscal year ending March 2027, this business development company is expected to earn $0.98 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Gladstone Investment. Over the past three months, the Zacks Consensus Estimate for the company has increased 8.9%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Gladstone Investment to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Gladstone Investment NASDAQ: GAIN reported first-quarter fiscal 2027 results for the quarter ended June 30, 2026, with adjusted net investment income covering its regular monthly shareholder distributions and a portfolio fair value of $1.3 billion.
Adjusted net investment income was $10.4 million, or $0.26 per share, up from $7.9 million, or $0.20 per share, in the preceding quarter. Net investment income totaled $15.9 million, or $0.40 per share, compared with a net investment loss of $10.6 million in the prior quarter.
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The company maintained its monthly distribution of $0.08 per share, or $0.96 annually. Chief Executive Officer and President David Dullum said the company’s strategy of investing through a mix of debt and equity supports both recurring operating income and potential gains from portfolio-company exits.
Acquisitions and Pending Exit Activity Gladstone Investment said it entered into an agreement to acquire Extrude Hone, subject to regulatory approvals, and expects the transaction to close in the coming weeks. After quarter-end, the company completed the acquisition of DHE Computer Systems and made an add-on acquisition at existing portfolio company Global GRAB Technologies.
The company expects to invest at least $116 million during the first six months of its fiscal year, compared with average annual investment activity of about $183 million over the past three fiscal years.
Gladstone Investment also entered an agreement to sell the operating entity of SFEG Holdings, a multinational portfolio company. The transaction requires approvals in several countries and is expected to close in coming months. Dullum said the company expects full repayment of its investment and a “very significant capital gain” upon closing.
During the analyst question-and-answer session, CFO Taylor Ritchie said $5.6 million in other income during the quarter was success-fee income paid by SFEG in advance of its pending exit, rather than an incentive-fee reversal.
Ritchie said the company’s June 30 valuation of SFEG represented the approximate amount it expects to collect in an exit, with adjustments for potential transaction costs and other considerations. Executive Vice President Erika Highland said the valuation reflects the final negotiated purchase agreement, including funds reserved in escrow that could potentially be returned depending on future developments.
Portfolio Performance and Valuations Total investment income increased to $28.4 million from $25.2 million in the preceding quarter. Interest income rose modestly, while success-fee income more than offset lower dividend income from equity investments, Ritchie said.
Net expenses fell to $12.4 million from $35.8 million in the prior quarter, primarily because the company reversed $5.6 million of accrued capital-gains-based incentive fees during the quarter. This compared with an $18.5 million incentive-fee accrual in the prior quarter.
Portfolio valuations declined by $18.8 million during the quarter, primarily due to an adjustment in SFEG’s valuation after agreement on the final sale price. Ritchie said that excluding the SFEG adjustment, the rest of the portfolio produced net unrealized appreciation, helped by operating performance at several companies and higher market valuation multiples.
The company recorded a $9 million realized loss related to a restructuring at Home Concepts, where it wrote off a portion of the company’s existing term loan. Ritchie described the restructuring as a proactive action intended to give Home Concepts more flexibility to execute operational initiatives and pursue growth.
Management also discussed several portfolio companies:
Galaxy Technologies experienced growth in aerospace and industrial markets. Diligent Delivery Systems saw its new management team stabilize the business and generate positive EBITDA. Its fair value increased by $3.8 million during the quarter, and management said it is optimistic the company could return to accrual status and potentially repay previously unpaid interest. Pyrotech has made acquisitions and is seeing growth involving existing and new artists and entertainment schedules. Detroit Defense experienced a slight EBITDA decline after anticipated contract-related funds were delayed amid administrative and spending hurdles in Washington. Dullum said some of those funds had been released after quarter-end and that the underlying business remains sound. As of June 30, three portfolio companies were on non-accrual status. Non-accrual investments represented 3.9% of the portfolio at cost and 1% at fair value, according to Ritchie.
Yield, Liquidity and Capital Structure The weighted average principal balance of Gladstone Investment’s interest-bearing portfolio was about $706 million, while the weighted average yield was 12.9%. Ritchie said investments completed after quarter-end include interest-rate floors above the current portfolio average, which could modestly increase the portfolio yield.
Based on the company’s portfolio composition, a 50- to 150-basis-point increase in SOFR would be expected to increase annual net investment income by approximately $0.02 to $0.09 per share, according to the company. An equivalent decline in SOFR would reduce annual net investment income by roughly $0.01 to $0.03 per share.
During the quarter, the company repaid its 5% notes at maturity using proceeds from a February issuance of five-year notes. It also amended its credit facility, reducing the borrowing spread over SOFR by 40 basis points, expanding commitments to $405 million from $300 million, and extending the facility maturity to 2031.
About $158 million was outstanding under the credit facility at quarter-end. The company reported an asset coverage ratio of 209% and a debt-to-equity ratio of 0.88 times.
Distributions and Outlook Net asset value declined to $16.24 per share from $16.78 at the end of the previous quarter. The company said the decrease reflected unrealized depreciation, realized losses and common shareholder distributions, partly offset by net investment income.
Gladstone Investment ended the quarter with $22.5 million, or $0.56 per share, in spillover income, enough to support approximately seven months of its current monthly distribution rate. Total distributable income was $160.4 million, or $4.03 per share, largely representing unrealized appreciation that management expects to monetize over time through portfolio exits.
Dullum said the company has not made a final decision on the timing or mix of potential distributions associated with the anticipated SFEG gain. He said management is weighing shareholder returns, capital retention, tax considerations and the company’s cost of capital.
Highland said the mergers-and-acquisitions market continues to have ample liquidity, making competition for reasonably valued acquisitions challenging. Still, she said the company has been able to compete for opportunities that meet its debt-and-equity investment model. Management said it remains cautious about elevated energy prices, possible supply-chain disruption and tariff costs, while describing the portfolio as generally healthy and positioned for continued investment activity.
About Gladstone Investment (NASDAQ:GAIN)Gladstone Investment NASDAQ: GAIN is a publicly traded business development company (BDC) that focuses on providing debt and equity financing to U.S. middle-market companies. As an externally managed closed-end fund, Gladstone Investment seeks to generate current income and capital appreciation for its shareholders by originating senior secured debt, subordinated debt and equity investments. The firm typically targets established businesses with revenues between $10 million and $150 million, across a range of industry sectors including business services, health care, industrials and specialty manufacturing.
The company's investment strategy centers on deploying capital through first-lien and second-lien term loans, mezzanine debt and equity co-investments, often including warrants or other equity kickers.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Gladstone Investment (GAIN - Free Report) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +8.33%. A quarter ago, it was expected that this business development company would post earnings of $0.22 per share when it actually produced earnings of $0.2, delivering a surprise of -9.09%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Gladstone Investment, which belongs to the Zacks Financial - SBIC & Commercial Industry industry, posted revenues of $28.36 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 10.46%. This compares to year-ago revenues of $23.54 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Gladstone Investment shares have added about 17.8% since the beginning of the year versus the S&P 500's gain of 12.8%.
What's Next for Gladstone Investment?While Gladstone Investment has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Gladstone Investment was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.23 on $26.26 million in revenues for the coming quarter and $0.91 on $105.16 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - SBIC & Commercial Industry is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Advanced Flower Capital Inc. (AFCG - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 13.
This company is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Advanced Flower Capital Inc.'s revenues are expected to be $8.24 million, up 32.9% from the year-ago quarter.
Earnings MCLEAN, VA / ACCESS Newswire / August 6, 2026 / Gladstone Investment Corporation (Nasdaq:GAIN) (the "Company") today announced earnings for its first fiscal quarter ended June 30, 2026. Please read the Company's Quarterly Report on Form 10-Q, filed today with the U.S. Securities and Exchange Commission (the "SEC"), which is available on the SEC's website at www.sec.gov or the investors section of the Company's website at www.gladstoneinvestment.com.
Summary Information: (dollars in thousands, except per share data (unaudited)):
June 30,
2026
March 31,
2026
Change
%
Change
For the quarter ended:
Total investment income
$
28,355
$
25,192
$
3,163
12.6
%
Total expenses, net(A)
12,428
35,802
(23,374
)
(65.3
)%
Net investment income (loss) (A)
15,927
(10,610
)
26,537
NM
Net realized (loss) gain
(9,000
)
163
(9,163
)
NM
Net unrealized (depreciation) appreciation
(18,782
)
92,821
(111,603
)
NM
Net (decrease) increase in net assets resulting from operations(A)
$
(11,855
)
$
82,374
$
(94,229
)
NM
Net investment income (loss) per weighted-average common share(A)
$
0.40
$
(0.27
)
$
0.67
NM
Adjusted net investment income per weighted-average common share(B)
$
0.26
$
0.20
$
0.06
30.0
%
Net (decrease) increase in net assets resulting from operations per weighted-average common share(A)
$
(0.30
)
$
2.07
$
(2.37
)
NM
Cash distribution per common share from net investment income(C)
$
0.24
$
0.24
$
-
-
%
Cash distribution per common share from net realized gains(C)
$
-
$
-
$
-
-
%
Weighted-average yield on interest-bearing investments
12.9
%
12.9
%
-
%
-
%
Total dollars invested
$
600
$
2,300
$
(1,700
)
(73.9
)%
Total dollars repaid and collected from sales and recapitalization of investments
$
-
$
8,513
$
(8,513
)
(100.0
)%
Weighted-average shares of common stock outstanding - basic and diluted
39,821,967
39,821,967
-
-
%
Total shares of common stock outstanding
39,821,967
39,821,967
-
-
%
As of:
Total investments, at fair value
$
1,282,020
$
1,309,248
$
(27,228
)
(2.1
)%
Fair value, as a percent of cost
122.7
%
124.4
%
(1.7
)%
(1.4
)%
Number of portfolio companies
29
29
-
-
%
Net assets
$
646,813
$
668,225
$
(21,412
)
(3.2
)%
Net asset value per common share
$
16.24
$
16.78
$
(0.54
)
(3.2
)%
Total distributable earnings
$
160,359
$
181,468
$
(21,109
)
(11.6
)%
Total distributable earnings per common share
$
4.03
$
4.56
$
(0.53
)
(11.6
)%
Estimated spillover
$
22,472
$
21,283
$
1,189
5.6
%
Estimated spillover per common share
$
0.56
$
0.53
$
0.03
5.7
%
NM = Not Meaningful
(A)
Inclusive of $5.6 million, or $0.14 per weighted-average common share, of capital gains-based incentive fees reversed during the three months ended June 30, 2026 and an accrual of $18.5 million, or $0.47 per weighted-average common share, of capital gains-based incentive fees accrued during the three months ended March 31, 2026, respectively. These fees were accrued in accordance with United States generally accepted accounting principles ("U.S. GAAP"), where such amounts were not contractually due under the terms of the investment advisory agreement for the respective periods. Also see discussion under Non-GAAP Financial Measure - Adjusted Net Investment Income below.
(B)
See Non-GAAP Financial Measure - Adjusted Net Investment Income, below, for a description of this non-GAAP measure and a reconciliation from Net investment income (loss) to Adjusted net investment income, including on a weighted-average per share basis. The Company uses this non-GAAP financial measure internally in analyzing financial results and believes it is useful to investors as an additional tool to evaluate ongoing results and trends for the Company.
(C)
Estimates of tax characterization made on a quarterly basis may not be representative of the actual tax characterization of distributions for the full year. Estimates made on a quarterly basis are updated as of each interim reporting date.
Highlights for the Quarter: During the quarter ended June 30, 2026, the following significant events occurred:
Portfolio Activity:
In June 2026, we entered into a new $3.0 million secured first lien term loan with Home Concepts Acquisition, Inc., restructuring our previously outstanding secured first lien term loan with a cost basis of $12.0 million, which resulted in a realized loss of $9.0 million.
In June 2026, we entered into a definitive agreement to acquire Extrude Hone LLC, a provider of precision surface-finishing solutions used in mission-critical applications, which is expected to close in the second fiscal quarter.
Distributions and Dividends:
Paid an $0.08 per common share distribution to common stockholders in each of April, May and June 2026, totaling $0.24 for the quarter.
Financing activity:
Repaid the 5.00% Notes due 2026 with an aggregate principal amount outstanding of $127.9 million at maturity.
Amended our credit facility, including extending the maturity date to June 8, 2031, increasing the total facility size from $300.0 million to $405.0 million, and reducing the base spread rate.
First Quarter Results: Net investment income for the quarter ended June 30, 2026 was $15.9 million, or $0.40 per weighted-average common share, compared to net investment loss of $10.6 million, or $0.27 per weighted-average common share, for the quarter ended March 31, 2026. This increase was a result of a decrease in total expenses, net of credits, primarily due to a decrease in accruals for capital gains-based incentive fees, partially offset by an increase in total investment income in the current quarter.
Total investment income for the quarters ended June 30, 2026 and March 31, 2026 was $28.4 million and $25.2 million, respectively. The increase quarter over quarter was primarily due to a $3.0 million increase in dividend and success fee income, the timing of which can be variable.
Total expenses, net of credits, for the quarters ended June 30, 2026 and March 31, 2026 was $12.4 million and $35.8 million, respectively. The decrease quarter over quarter was primarily due to a $24.1 million decrease in accruals for capital gains-based incentive fees in the current quarter, as a result of the net impact of realized and unrealized gains and losses and a $0.3 million decrease in professional fees. The decrease was partially offset by a $0.6 million increase in other expenses, a $0.3 million increase in interest expense, related to increased borrowings on the credit facility, partially offset by the redemption of the 5.00% 2026 Notes in May 2026, and a $0.2 million increase in base management fee.
Net asset value per common share as of June 30, 2026 was $16.24, compared to $16.78 as of March 31, 2026. The decrease quarter over quarter was primarily due to net unrealized depreciation of investments of $18.8 million, or $0.47 per common share, $9.6 million, or $0.24 per common share, of distributions paid to common shareholders, and $9.0 million, or $0.23 per common share, of net realized loss on investments. These decreases were partially offset by $15.9 million, or $0.40 per common share, of net investment income.
The following table provides relevant information related to our notes payable and Credit Facility as of June 30, 2026:
Interest Rate
Aggregate Principal Amount
Notes Payable
4.875% 2028 Notes
4.875%
$
134,550
7.875% 2030 Notes
7.875%
126,500
6.875% 2028 Notes
6.875%
60,000
7.125% 2031 Notes
7.125%
100,000
Total Notes payable
$
421,050
Credit Facility (A)
Commitment amount
SOFR + 2.85%
$
405,000
Borrowings outstanding at cost
$
157,600
Availability(B)
$
247,400
Percentage of borrowings at:(C)
Fixed rate
72.8
%
Floating rate
27.2
%
(A)
The Credit Facility bears interest at 30-day Term Secured Overnight Financing Rate ("SOFR").
(B)
Availability is subject to various constraints, characteristics and applicable advance rates based on collateral quality under our Credit Facility, which equated to an adjusted availability of $163.2 million as of June 30, 2026.
(C)
The percentage uses the Credit Facility borrowings outstanding at cost as of June 30, 2026. The fixed rate borrowings consist of the outstanding notes payable. The floating rate borrowings consist of the Credit Facility borrowings outstanding at cost.
The following table presents certain selected information regarding the debt investments of our portfolio companies as of June 30, 2026:
June 30, 2026(A)(B)
Weighted average interest rate of debt investments
12.9
%
Weighted average interest rate floor of debt investments
12.1
%
Current percentage of debt investments at interest rate floor
51.8
%
Weighted average interest rate of debt investments assuming:
50 basis points increase in SOFR
13.2
%
25 basis points increase in SOFR
13.1
%
25 basis points decrease in SOFR
12.8
%
50 basis points decrease in SOFR
12.7
%
(A)
Debt investments presented exclude line of credit commitments and all debt investments on non-accrual status as of June 30, 2026. The weighted average interest rate is based on the cost balance of the debt investments.
(B)
As of June 30, 2026, 100.0% of our debt investments are variable rates with a floor and are indexed to 30-day SOFR. The interest rate is the greater of the floor or the total of SOFR plus a spread. As of June 30, 2026, we did not have any loans with a paid-in-kind interest component.
Subsequent Events: After June 30, 2026, the following significant events occurred:
Significant Investment Activity:
In July 2026, we invested $56.5 million in a new portfolio company, DHE Computer Systems Acquisition, Inc. ("DHE"), in the form of $40.3 million of secured first lien debt and $16.1 million of preferred equity. DHE, headquartered in Centennial, Colorado, is a full-service technology solutions provider serving the education, state and local government, and commercial markets.
In July 2026, we invested an additional $5.1 million, in the form of $1.5 million of secured first lien debt and $3.6 million of preferred equity, in Global GRAB Technologies, Inc. to fund an add-on acquisition.
In July 2026, our portfolio company SFEG Holdings, Inc. ("SFEG") agreed to the sale of its subsidiary Specialized Fabrication Equipment Group LLC, which is expected to close in the third or fourth quarter of the calendar year. We expect to receive full repayment of our debt investment and realize a significant capital gain on our equity interest in SFEG.
Distributions and Dividends:
In July 2026, our Board of Directors declared the following monthly distributions to common stockholders:
Record Date
Payment Date
Distribution per Common Share
July 24, 2026
July 31, 2026
$ 0.08
August 18, 2026
August 31, 2026
0.08
September 21, 2026
September 30, 2026
0.08
Total for the Quarter:
$ 0.24
Non-GAAP Financial Measure - Adjusted Net Investment Income: On a supplemental basis, the Company discloses Adjusted net investment income, including on a weighted-average per share basis, which is a financial measure that is calculated and presented on a basis of methodology other than in accordance with GAAP. Adjusted net investment income represents net investment income (loss), excluding capital gains-based incentive fees. The Company uses this non-GAAP financial measure internally in analyzing financial results and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company. The Company's investment advisory agreement provides that a capital gains-based incentive fee is determined and paid annually with respect to realized capital gains (but not unrealized appreciation) to the extent such realized capital gains exceed realized capital losses and unrealized depreciation on investments for such year. However, under GAAP, a capital gains-based incentive fee is accrued if realized capital gains and unrealized appreciation of investments exceed realized capital losses and unrealized depreciation of investments. Refer to Note 4 - Related Party Transactions in our Quarterly Report on Form 10-Q for further discussion. The Company believes that Adjusted net investment income is a useful indicator of operations exclusive of any capital gains-based incentive fees, as net investment (loss) income does not include realized or unrealized investment activity associated with the capital gains-based incentive fee.
The following table provides a reconciliation of net investment (loss) income (the most comparable GAAP measure) to Adjusted net investment income for the periods presented (dollars in thousands, except per share amounts; unaudited):
For the quarter ended
June 30, 2026
March 31, 2026
Amount
Per Share
Amount
Amount
Per Share
Amount
Net investment income (loss)
$
15,927
$
0.40
$
(10,610
)
$
(0.27
)
Capital gains-based incentive fee
(5,566
)
(0.14
)
18,533
0.47
Adjusted net investment income
$
10,361
$
0.26
$
7,923
$
0.20
Weighted-average shares of common stock outstanding - basic and diluted
39,821,967
39,821,967
Adjusted net investment income may not be comparable to similar measures presented by other companies, as it is a non-GAAP financial measure that is not based on a comprehensive set of accounting rules or principles and therefore may be defined differently by other companies. In addition, Adjusted net investment income should be considered in addition to, not as a substitute for, or superior to, financial measures determined in accordance with GAAP.
Conference Call: The Company will hold its earnings release conference call on Friday, August 7, 2026, at 8:30 a.m. Eastern Time. Please call (866) 373-3416 to enter the conference call. An operator will monitor the call and set a queue for any questions. A replay of the conference call will be available through August 14, 2026. To hear the replay, please dial (877) 660-6853 and use the playback conference number 13760772. The replay will be available after the call concludes. The live audio broadcast of the Company's quarterly conference call will also be available online at www.gladstoneinvestment.com. The event will be archived and available for replay on the Company's website.
About Gladstone Investment Corporation: Gladstone Investment Corporation is a publicly traded business development company that seeks to make secured debt and equity investments in lower middle market businesses in the United States in connection with acquisitions, changes in control and recapitalizations. Information on the business activities of all the Gladstone funds can be found at www.gladstonecompanies.com.
To obtain a paper copy of our Quarterly Report on Form 10-Q, filed today with the SEC, please contact the Company at 1521 Westbranch Drive, Suite 100, McLean, VA 22102, ATTN: Investor Relations. The financial information above is not comprehensive and is without notes, so readers should obtain and carefully review the Company's Form 10-Q for the quarter ended June 30, 2026, including the notes to the consolidated financial statements contained therein.
Investor Relations Inquiries: Please visit ir.gladstoneinvestment.com or call (703) 287-5893.
Forward-looking Statements:
The statements in this press release regarding potential future distributions, earnings and operations of the Company are "forward-looking statements." These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on the Company's current plans that are believed to be reasonable as of the date of this press release, a number of factors could cause actual results and conditions to differ materially from these forward-looking statements, including those factors described from time to time in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or otherwise, except as required by law.
By webcast -- Log on to the web at the address above
By phone -- please call (866) 373-3416
Contact:
Gladstone Investment Corporation, (703) 287-5893
A conference call replay will be available beginning after the call and will be accessible through August 14, 2026. To hear the replay, please dial (877) 660-6853 and use playback conference number 13760772.
If you are unable to participate during the live webcast, the call will be archived on the website www.gladstoneinvestment.com. The event will be archived and available for replay on the Company's website.
Gladstone Investment Corporation is a publicly traded business development company that seeks to make secured debt and equity investments in lower middle market businesses in the United States in connection with acquisitions, changes in control and recapitalizations.
For further information: Gladstone Investment Corporation, (703) 287-5893
Kayne Anderson BDC (NYSE:KBDC – Get Free Report) and Gladstone Investment (NASDAQ:GAIN – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.
Profitability This table compares Kayne Anderson BDC and Gladstone Investment’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Kayne Anderson BDC 37.30% 10.47% 5.14% Gladstone Investment 186.47% 6.05% 2.90% Insider & Institutional Ownership 11.8% of Gladstone Investment shares are owned by institutional investors. 2.9% of Kayne Anderson BDC shares are owned by insiders. Comparatively, 2.2% of Gladstone Investment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation This table compares Kayne Anderson BDC and Gladstone Investment”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Kayne Anderson BDC $235.82 million 3.83 $93.71 million $1.28 10.64 Gladstone Investment $99.08 million 6.54 $184.75 million $4.69 3.47 Gladstone Investment has lower revenue, but higher earnings than Kayne Anderson BDC. Gladstone Investment is trading at a lower price-to-earnings ratio than Kayne Anderson BDC, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk Kayne Anderson BDC has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Gladstone Investment has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
Analyst Recommendations This is a breakdown of recent ratings for Kayne Anderson BDC and Gladstone Investment, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Kayne Anderson BDC 0 2 2 0 2.50 Gladstone Investment 0 1 3 0 2.75 Kayne Anderson BDC currently has a consensus target price of $15.12, indicating a potential upside of 11.09%. Gladstone Investment has a consensus target price of $16.75, indicating a potential upside of 2.89%. Given Kayne Anderson BDC’s higher possible upside, analysts clearly believe Kayne Anderson BDC is more favorable than Gladstone Investment.
Dividends Kayne Anderson BDC pays an annual dividend of $1.60 per share and has a dividend yield of 11.8%. Gladstone Investment pays an annual dividend of $0.96 per share and has a dividend yield of 5.9%. Kayne Anderson BDC pays out 125.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gladstone Investment pays out 20.5% of its earnings in the form of a dividend.
Summary Gladstone Investment beats Kayne Anderson BDC on 9 of the 16 factors compared between the two stocks.
About Kayne Anderson BDC (Get Free Report)
Kayne Anderson BDC Inc. is a business development company which invests primarily in first lien senior secured loans, with a secondary focus on unitranche and split-lien loans to middle market companies. Kayne Anderson BDC Inc. is based in CHICAGO.
About Gladstone Investment (Get Free Report)
Gladstone Investment Corporation is business development company, specializes in lower middle market, mature stage, buyouts; refinancing existing debt; senior debt securities such as senior loans, senior term loans, lines of credit, and senior notes; senior subordinated debt securities such as senior subordinated loans and senior subordinated notes; junior subordinated debt securities such as subordinated notes and mezzanine loans; limited liability company interests, and warrants or options. The fund does not invest in start-ups. The fund seeks to invest in manufacturing, consumer products and business/consumer services sector. It seeks to invest in small and mid-sized companies based in the United States. The fund prefers to make debt investments between $5 million and $30 million and equity investments between $10 million and $40 million in companies. The fund seeks to invest in companies with revenue between $20 million and $100 million. The fund invests in companies with EBITDA from $3 million to $20 million. It seeks minority equity ownership and prefers to hold a board seat in its portfolio companies. It also prefers to take majority stake in its portfolio companies. The fund typically holds the investments for seven years and exits via sale or recapitalization, initial public offering, or sale to third party.
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Why sit around and wait all quarter long for a dividend payment where there are monthly dividend stocks available?
Monthly divvies are where the retirement party is at! These income “cheat codes” arrive alongside our bills and recurring expenses. What a concept!
But be careful because some monthly payers don’t pay enough to matter. Take Permian Basin Royalty Trust (PBT), which pays monthly but these divvies add up to just 1.2% annually. Gee, thanks.
PBT Dividend Yield
Ycharts
We need monthly payers that are committed to maximizing not just the frequency of shareholder rewards, but the size of the payout. And we need to shoot high—we shouldn’t settle for anything less than what it would take to retire on dividends alone.
Fortunately for us, many monthly dividend stocks fall within the high-yield acronyms: real estate investment trusts (REITs), business development companies (BDCs) and the like.
MORE FOR YOU
Today, for instance, I’ve put together a five-pack of monthly dividends that shell out an average of 10.6% annually. That means even half a million bucks evenly invested across them would generate a hefty “salary” of $53,000.
Monthly Payers
Contrarian Outlook
Let’s take a look.
Monthly Dividend #1: Healthpeak Properties (DOC)I’ll start with Healthpeak Properties (DOC), a healthcare REIT whose roughly 690 properties include outpatient medical facilities and laboratories, which are leased out to biopharma firms, health systems, physician groups, medical device manufacturers and more.
Healthpeak also deals in senior housing, albeit not as directly as it did just a few months ago. In March, DOC spun off that part of the business with an initial public offering of Janus Living (JAN). It wasn’t a full exit, however. Healthpeak not only retained more than 80% of the newly formed REIT, but it also is Janus’s external manager.
A couple months later, DOC received a much-needed jolt after reporting better-than-expected earnings and upgrading its funds from operations (FFO) outlook. Among the reasons for management’s optimism: The senior housing environment is improving, Janus appears primed to aggressively invest, and a weak laboratories market showed small signs that it’s starting to inflect.
And just this week, Healthpeak announced a $2.1 billion joint venture with Brookfield Asset Management (BAM) that will help DOC to pay down nearer-term debt (though it could be a short-term weight on earnings, too).
Healthpeak’s stock has delivered a year-to-date total return of almost 45% thanks to its summer ramp-up. It’s a welcome development for shareholders that have suffered through a decade-plus downtrend. However, new money is now buying a yield that’s well below historical highs and closer to a longer-term middle ground, while the P/FFO has wafted to just above 13—not wildly overpriced, but not discount territory either.
Monthly Dividend #2: Itau Unibanco Holding (ITUB)Most international companies pay dividends just once or twice a year, and some will even do a lopsided interim-and-final system. That’s practically useless for income planning.
Itaú Unibanco Holding (ITUB) isn’t exactly a conventional payer itself, but it at least doles out something each and every month.
Itaú Unibanco is the largest bank by assets in both Brazil and all of Latin America. It offers consumer banking products like credit cards and loans, but also commercial banking, advisory, real estate lending, life insurance and more. And while it’s headquartered in Brazil, it has operations across the Americas and Europe.
The company has printed bigger top and bottom lines every year since 2020, and it’s coming off a record-breaking first quarter in which it posted a $2.5 billion profit and a return on equity of around 25%. The company is also one of the region’s leaders in digital assets, giving it another potential growth avenue.
ITUB’s distributions are tied to performance, so Itaú Unibanco has increasingly been sharing the wealth with its stockholders. But while it pays much more frequently than most, it still has an odd system.
I’ve written several times about companies with regular-and-supplemental dividend programs. Itaú goes a step farther. The company distributes small monthly payments of “interest on capital” (IOC), but it will also make larger additional IOC payments throughout the year as able, then an actual dividend—usually its biggest payment—once a year.
The monthly payment only comes out to less than half a percent’s worth of yield; the real money is in those larger IOC distributions and the dividend. So while the dividends are a nice sweetener for investors who like ITUB for its growth potential, it’s not an ideal situation for retirement planners reliant on regular income.
Monthly Dividend #3: Gladstone Investment (GAIN)Let’s shift to business development companies, starting with one that has a regular-and-supplemental system like ITUB (but with a much more substantial baseline of income).
For the unfamiliar: BDCs were created by Congress in 1980 to spur investment in small businesses. Traditional banks often shunned smaller companies, either charging extremely high rates to compensate for the risk or outright refusing to lend to them. Enter BDCs, which provide equity, debt and other financing to small businesses that otherwise might not be able to raise capital.
Gladstone Investment (GAIN), for instance, provides financing to lower-middle-market companies that generate EBITDA (earnings before interest, taxes, depreciation and amortization) of between $4 million and $15 million annually, have attractive fundamentals and are run by strong management teams.
GAIN runs a small portfolio of just 29 investment companies right now, largely clustered in the business/consumer services, consumer products and manufacturing industries. Its investments include Phoenix Door Systems (industrial doors), ImageWorks Display (retail display shelving) and Old World Christmas (holiday-geared retail).
Gladstone Investment also stands out for its deal mix. Like with most BDCs, the majority of Gladstone’s financing is debt-based, and currently, all of that debt is floating-rate in nature. But GAIN is happier than most to deal in equity. Gladstone says the average BDC’s equity exposure is between 5% and 10%; its target is closer to 25%. This shields GAIN from interest-rate declines but puts it behind the 8-ball when rates climb.
There’s plenty to like from an operational standpoint. Net asset value has grown by nearly 30% between its fiscal Q1 and its recently reported fiscal Q4. Return on equity is consistently in the double digits and above peers.
The dividend is best described as “good with the potential for greatness.” GAIN’s monthly dividend comes out to a little less than 6%, which is high compared to the average stock and far better than what ITUB offers, but low relative to the BDC space. However, Gladstone Investment also pays supplemental distributions when it locks in gains from its equity investments.
Right now, for instance, Gladstone Investment has gone roughly a year since its last supplemental. It might pay one later this year. It might do so in early 2027. It might be even longer; it’s hard to tell.
Still, it’s a decent income baseline with the potential for more, and it’s paid out by one of the industry’s better names. Pricing could be better, though, with GAIN shares currently trading right around the BDC’s net asset value.
Monthly Dividend #4: PennantPark Floating Rate Capital (PFLT)PennantPark Floating Rate Capital (PFLT) is another BDC that provides financing primarily via floating-rate senior secured loans—mostly first lien—but also through some equity and joint venture investments. Its target companies generate $10 million to $50 million in annual EBITDA.
This “value-added” BDC lends its expertise in specific industries, hence its portfolio focus on five categories: healthcare, consumer, business services, government services and software/technology.
Earlier this year, I wrote that PennantPark Floating Rate’s dividend has routinely outstripped its net investment income (NII), and did so again to close out 2025. The company insisted then that it could keep covering the payout.
PFLT adjusted its monthly dividend program from 10.25 cents per share to an 8-cent regular, as well as supplemental dividends (50% of excess earnings). The first two supplemental dividends since the reduction were 0.33 cents apiece.
But not all dividend cuts are created equally. In the case of PFLT, its dividend cut is more a reflection of lower base rates than any underlying portfolio issues. In fact, the company’s credit quality is high relative to the sector, and sponsor investment activity is improving. Moreover, PFLT continues to trade for a song, priced at a 32% discount to NAV.
Monthly Dividend #5: Invesco Mortgage Capital (IVR)It’s hard to find better yields than in the mortgage REIT (mREIT) space, where double-digit payouts are the norm.
Mortgage REITs borrow at short-term rates, purchase mortgages paying long-term rates, then pocket the spread. Short-term rates are usually lower than long-term rates. But the ideal scenario is that short-term rates are also declining while long-term rates hold steady or also decline. In that scenario, mREITs’ existing mortgages, which were issued when rates were higher, will yield more than newly issued ones (and thus be worth more). On the flip side, rising rates weigh on the value of existing mortgages.
Invesco Mortgage Capital (IVR), for instance, owns “agency” mortgage-backed securities (MBS) from entities like Fannie Mae and Freddie Mac. These securities feel interest-rate pressure too, but it’s not as great because their MBSs are backed by the agencies, and thus they have virtually no default risk. I’ll also note that rising interest rates reduce the risk of prepayment, mostly because mortgage holders are less likely to refinance.
While Invesco Mortgage Capital yields a mouth-watering 18%, mortgage REITs historically have been prone to unstable dividends, and IVR is no different.
Near the end of 2025, IVR announced a modest 6% dividend hike to 36 cents per share to be paid in January. But in January, the company announced it would start to issue monthly dividends of 12 cents per share (so, the same amount each quarter).
Invesco Mortgage Capital has mostly underperformed its peers since COVID, but it has behaved much better over the past year or so. Dividend coverage, per its “earnings available per distribution” (EAD), is fine for now, too. But despite an effectively flat year-to-date performance (even accounting for its massive payout), shares trade at a thin discount to its shrinking book value.
Retirees living off a portfolio care about one thing above all: when the checks show up. The five names below all pay monthly, and the anchor of the group, Realty Income (NYSE:O | O Price Prediction), has now declared unbroken monthly payments documented back to at least 1999, an income streak few dividend stocks on any US exchange can match. Yields here range from mid-single digits to double digits, but yield is only half the story. What follows is a safety-first read on each name, with the coverage math, balance sheet, and track record that determine whether that monthly deposit keeps landing.
Realty Income (O) Realty Income trades near $65.53 with a monthly dividend of $0.271 per share and an annualized forward payout of $3.252 per share. That puts the current yield in high-yield territory rather than ultra-high-yield, and for most retirees that is the point: you are buying the most durable monthly check in the group.
Safety leads the case. First-quarter AFFO of $1.13 per share, up 6.6% year over year, easily covers the current run-rate dividend, and management raised 2026 AFFO guidance to $4.41 to $4.44 per share. Portfolio occupancy sits at 98.9% with lease recapture of 103.4%, and net debt to adjusted EBITDAre improved to 5.2x from 5.4x. Behind the numbers is the record: 670 consecutive monthly dividends and, per the company, 114 consecutive quarterly increases.
The bull case for income investors is boring in the best way. Realty Income deployed $2.8 billion at a 7.1% initial cash yield in Q1, and 2026 investment guidance was raised to $9.5 billion, which supports continued small monthly dividend bumps. The risk to watch: client concentration, with the top 20 tenants representing 35.8% of annualized base rent, plus impairments of $129.3 million in the quarter tied to weaker credits.
Main Street Capital (MAIN) Main Street Capital (NYSE:MAIN) is an internally managed business development company yielding 5.73% at a recent price of $55.49. The regular monthly dividend was recently raised to $0.265 per share, layered on top of a $0.30 supplemental paid roughly every quarter.
On safety, distributable net investment income of $1.00 per share in Q1 2026 lines up with the monthly dividends paid, and management describes DNII as significantly exceeding the regular monthly payout. Net asset value per share ticked up to $33.46, non-accruals sit at just 1.2% of the portfolio at fair value, and the operating expense ratio is an industry-lean 1.3% of assets. Full-year 2025 ROE ran at 17.1%. On track record: MAIN has paid monthly dividends without interruption for 17+ years with no cuts, and the base has climbed from $0.24 in 2024 to $0.26 in 2026.
The bull case is a rare combination of monthly base, quarterly supplementals, and a trailing 12-month dividend total of $4.30 per share. Risk to acknowledge: falling benchmark rates compress floating-rate income, and shares trade at 1.605 times book value, so premium-to-NAV compression is a real drawdown risk if credit sours.
AGNC Investment (AGNC) AGNC Investment (NASDAQ:AGNC) is the ultra-high-yield of the group. At a recent $11.18 and an annualized dividend of $1.44 per share, the mortgage REIT’s yield sits comfortably above the 6% ultra-high-yield line. The $0.12 monthly dividend has now been held steady since March 2020.
On coverage, net spread plus dollar roll income was $0.42 per share in Q1 2026, versus roughly $0.36 in quarterly dividends, and net interest spread widened to 2.06%. For 2025, AGNC posted an economic return on tangible common equity of 22.7% and a total stock return of 34.8% with dividends reinvested. Balance sheet: $94.7 billion portfolio, 7.4x leverage, 83% hedge coverage. Track record is not spotless (the 2020 cut from $0.16 to $0.12 is a matter of record), but the current payout has been durable for six years.
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The bull case for income investors is that AGNC funds a genuine double-digit yield out of net spread income while managing hedges actively. The risk: book value volatility. Tangible book fell 5.6% to $8.38 in Q1 2026, and the economic return was -1.6% as Agency MBS spreads widened. When spreads move against the book, principal takes the hit.
Gladstone Investment (GAIN) Gladstone Investment (NASDAQ:GAIN) is a smaller buyout-focused BDC yielding 5.79% on the regular monthly, with a recent price of $16.49. The $0.08 monthly distribution has been in place since 2023, and the model layers in periodic supplementals sourced from realized buyout gains, including a $0.9375 supplemental with a July 15, 2026 ex-date.
The safety read is nuanced. Regular monthly coverage runs tight: adjusted NII of $0.20 per share in fiscal Q4 supports the $0.24 quarterly regular, and supplementals from exits have historically filled any gap. Portfolio fair value stands at 124.4% of cost, the weighted-average yield on interest-bearing investments is 12.9%, and NAV per share climbed to $16.78, up 23.8% year over year. Shares trade near 0.988 times book.
Bull case: you effectively own a monthly-paying private equity vehicle. Realized gains from exits like the KBK Industries sale ($17.3 million realized gain) get returned to shareholders as special distributions. Risk to weigh: 52.5% of debt investments sit at a rate floor, so a lower SOFR trims income, and the J.R. Hobbs restructuring caused a $29.9 million realized loss, a reminder that lower-middle-market credit can gap down.
Gladstone Land (LAND) Gladstone Land (NASDAQ:LAND) is the ultra-high-yield of the REIT group, yielding 6.47% at a recent price of $8.68. The farmland REIT owns 98,688 acres concentrated in fresh produce, almonds, and pistachios, and pays a $0.0467 monthly distribution with a $0.5604 annualized forward rate. Monthly payments have been maintained with an unbroken cadence through the entire tracked period.
Coverage is where the caveat leads. FY 2025 AFFO of $0.39 per share did not cover the annualized common distribution of $0.5604, though revenue is Q4-concentrated because of participation-rent structures. Q1 2026 AFFO grew to $0.08 per share, up 35.1% year over year. The balance sheet is a real strength: nearly 100% of debt is fixed rate, with more than $145 million of available capital and over $110 million in unencumbered properties. Shares trade at 0.543 times book.
Bull case: a hard-asset monthly payer with almost no floating-rate debt exposure at a time when the 10-year Treasury sits at 4.55%. Risk: occupancy has slipped to 94.9%, management is considering additional property sales, and until AFFO catches up to the distribution rate, the ultra-high-yield here demands the closest monitoring in this group.
Building the Monthly Paycheck Together, these five names give a retiree twelve deposits a year across triple-net retail, lower-middle-market credit and equity, Agency mortgages, buyout gains, and US farmland. Realty Income anchors the group on safety, MAIN offers the strongest coverage and growth combination, AGNC delivers the biggest headline yield with the biggest book-value swings, GAIN sweetens the base with realized-gain supplementals, and LAND is the highest-yielding hard-asset piece with the tightest coverage. Weighting them by safety rather than by yield is how a nest egg turns into a paycheck that keeps arriving.
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MCLEAN, VA / ACCESS Newswire / July 20, 2026 / Gladstone Investment Corporation (Nasdaq:GAIN) ("Gladstone Investment") is pleased to announce that it has continued its support of portfolio company Global GRAB Technologies, Inc. ("Global GRAB") through providing additional capital to support the acquisition of substantially all of the assets of RSSI Barriers, LLC ("RSSI").
Global GRAB, headquartered in Franklin, Tennessee, is a leading provider of physical perimeter security and hostile vehicle mitigation solutions serving military installations, government facilities, critical infrastructure, transportation, utility, commercial and other high-security environments. RSSI is a well-recognized market leader and industry pioneer in 100% electric crash-rated barrier technology and solutions for gate automation. RSSI's electric barrier systems have successfully undergone rigorous crash testing and certification standards and are trusted by customers responsible for protecting mission-critical facilities.
Global GRAB and RSSI have partnered for years to deliver innovative security solutions across high-security end markets. The acquisition represents a natural evolution of that relationship and meaningfully expands Global GRAB's portfolio of engineered and crash-certified perimeter security solutions. Together, Global GRAB and RSSI will offer customers a broader suite of crash-rated vehicle barriers, less-than-lethal technologies, perimeter reinforcement systems, intelligent detection solutions, integrated access control products, and lifecycle support capabilities.
"Global GRAB Technologies has collaborated with RSSI on various opportunities and projects for years and has formed a great partnership," said Brian Cooper, COO and President of Global GRAB. "We're excited to bring RSSI into the Global GRAB family of brands and continue delivering innovative security solutions to our customers."
"This acquisition is about more than expanding our product portfolio," said Mark Horne, Chief Executive Officer of Global GRAB. "It brings together two organizations with a shared commitment to innovation, engineering excellence and protecting people, critical infrastructure and national assets. By combining our expertise, we are better positioned than ever to deliver comprehensive perimeter security solutions that address today's evolving threats."
"RSSI is a highly strategic acquisition for Global GRAB and reinforces the platform's position as a leading provider of mission-critical perimeter security and hostile vehicle mitigation solutions," said Michael Cueter, Managing Director at Gladstone Investment. "RSSI brings a well-recognized brand, differentiated electric crash-rated barrier technology, and deep customer credibility in demanding security environments. We are excited to continue supporting the Global GRAB team as they expand the platform's capabilities, product breadth and ability to serve customers protecting critical infrastructure and national assets."
Gladstone Investment is a publicly traded business development company that seeks to make equity and secured debt investments in lower middle market businesses in connection with acquisitions, changes in control, and recapitalizations. Additional information on the transaction can be found at www.gladstoneinvestment.com.
For Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.gladstone.com.
Forward-looking Statements:
The statements in this press release regarding the longer-term prospects of Gladstone Investment, Global GRAB, RSSI and their management teams, and the ability of Gladstone Investment, Global GRAB and RSSI to grow and expand are "forward-looking statements." These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on Gladstone Investment's current plans that are believed to be reasonable as of the date of this press release, a number of factors could cause actual results and conditions to differ materially from these forward-looking statements, including those factors described from time to time in Gladstone Investment's filings with the Securities and Exchange Commission. Gladstone Investment undertakes no obligation to update or revise these forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
For further information: Gladstone Investment Corporation, (703) 287-5893
MCLEAN, VA / ACCESS Newswire / July 14, 2026 / Gladstone Investment Corporation (Nasdaq:GAIN) (the "Company") announced today that its board of directors declared the following monthly cash distributions to common stockholders. The Company also announced its plan to report earnings for its first fiscal quarter ended June 30, 2026.
Common Stock: $0.08 per share of common stock for each of July, August and September 2026 payable per the table below.
Record Date
Payment Date
Cash Distribution
July 24
July 31
$0.08
August 18
August 31
$0.08
September 21
September 30
$0.08
Total for the Quarter:
$0.24
The Company offers a dividend reinvestment plan (the "DRIP") to its common stockholders. For more information regarding the DRIP, please visit www.gladstoneinvestment.com.
The Company also announced today that it plans to report earnings after the stock market closes on Thursday, August 6, 2026, for its first fiscal quarter ended June 30, 2026. The Company will hold a conference call on Friday, August 7, 2026 at 8:30 a.m. Eastern Time to discuss its earnings results. Please call (866) 373-3416 to enter the conference call. An operator will monitor the call and set a queue for questions.
A conference call replay will be available beginning after the call and will be accessible through August 14, 2026. To hear the replay, please dial (877) 660-6853 and use playback conference number 13760772.
The live audio broadcast of the Company's conference call will be available online at www.gladstoneinvestment.com. The event will also be archived and available for replay on the Company's website.
About Gladstone Investment Corporation: Gladstone Investment Corporation is a publicly traded business development company that seeks to make secured debt and equity investments in lower middle market businesses in the United States in connection with acquisitions, changes in control, and recapitalizations. Information on the business activities of all the Gladstone funds can be found at www.gladstonecompanies.com.
Investor Relations Inquiries: Please visit www.gladstonecompanies.com or (703) 287-5893.
MCLEAN, VA / ACCESS Newswire / July 10, 2026 / Gladstone Investment Corporation (NASDAQ:GAIN) ("Gladstone Investment") is pleased to announce its acquisition of DHE Computer Systems, LLC ("DHE"). Gladstone Investment provided debt and equity financing to complete the transaction.
DHE (the "Company"), headquartered in Centennial, Colorado, is a leading full-service technology solutions provider serving the state, local, and education and commercial markets. DHE provides end-to-end IT products and lifecycle services, including hardware, software, device configuration and enrollment, deployment logistics, repair and warranty support, data recovery, and emerging managed services. DHE's existing management team, led by Chief Executive Officer Dan Hammack, will continue to lead the business following the transaction. The Company's founders, Dan Hammack and Elena "Annie" Hammack, will remain meaningful shareholders alongside Gladstone Investment.
"We are excited to partner with Dan, Annie and the entire DHE team as the Company continues its next phase of growth," said Michael Cueter, Managing Director at Gladstone Investment. "DHE has established itself as a trusted, high-touch technology partner to schools, government agencies and commercial customers by delivering the products, services and support needed to manage complex device fleets and broader IT service solutions. We believe DHE's strong customer relationships, OEM partnerships, service capabilities and expanding technology offerings create a compelling platform for continued growth."
"The Hammack family is excited to partner with Gladstone Investment as we begin DHE's next chapter," said Dan Hammack. "Since founding DHE, our focus has always been on serving as a trusted technology partner to our customers and helping them solve complex IT needs with responsive service and practical solutions. We believe Gladstone Investment is the right partner to help us build on that foundation, continue investing in our team and expanding capabilities, and pursue the next phase of growth for the business."
"DHE represents another strong example of Gladstone Investment's strategy of partnering with successful founder- and management-owned lower middle market businesses," said David Dullum, Chief Executive Officer and President of Gladstone Investment. "This investment represents our dedication to our ultimate goal of investing in quality companies that will produce stable income for dividends to Gladstone Investment's shareholders, as well as longer-term capital appreciation resulting in capital gains."
Gladstone Investment is a publicly traded business development company that seeks to make equity and secured debt investments in lower middle market businesses in connection with acquisitions, changes in control, and recapitalizations. Additional information on the transaction can be found at www.gladstoneinvestment.com.
For Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.gladstone.com.
Forward-looking Statements:
The statements in this press release regarding the longer-term prospects of Gladstone Investment and DHE and its management team, and the ability of Gladstone Investment and DHE to grow and expand are "forward-looking statements." These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on Gladstone Investment's current plans that are believed to be reasonable as of the date of this press release, a number of factors could cause actual results and conditions to differ materially from these forward-looking statements, including those factors described from time to time in Gladstone Investment's filings with the Securities and Exchange Commission. Gladstone Investment undertakes no obligation to update or revise these forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
For further information: Gladstone Investment Corporation, (703) 287-5893
MCLEAN, VA / ACCESS Newswire / July 7, 2026 / Gladstone Investment Corporation (Nasdaq:GAIN) ("Gladstone Investment") portfolio company SFEG Holdings Inc. announced today that it has agreed to the sale of Specialized Fabrication Equipment Group LLC ("SFEG" or the "Company") to Enerpac Tool Group Corp., marking another successful realization for Gladstone Investment's buyout strategy. Gladstone Investment is expected to receive full repayment of its debt investment and realize a significant capital gain on its equity interest.
SFEG designs and sells a suite of branded, specialty equipment for the fabrication and welding industries. Enerpac is a global provider of industrial tools and services, and the acquisition further expands its portfolio of specialty industrial solutions.
"Gladstone Investment is proud to have supported SFEG across six separate acquisitions that expanded the Company's product offering, customer reach, and market position within the fabrication and welding equipment industry," said Christopher Lee, Executive Vice President of Gladstone Investment. "CEO Vinay Varma, President Aidan Tagliaferro, and the entire SFEG management team successfully scaled the business through organic growth and acquisitions while broadening SFEG's portfolio of branded specialty equipment solutions and we wish them continued success as they further expand under Enerpac."
"The successful sale of SFEG will represent Gladstone Investment's 31st realized exit from a management-supported buyout investment since inception," said David Dullum, Chief Executive Officer and President of Gladstone Investment. "This outcome reflects our strategy of partnering with management teams to build scalable lower middle market businesses while generating current income and long-term capital appreciation for shareholders."
Gladstone Investment is a publicly traded business development company that seeks to make equity and secured debt investments in lower middle market businesses in the United States in connection with acquisitions, changes in control and recapitalizations. Additional information on the transaction can be found at www.gladstoneinvestment.com.
For Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.gladstone.com.
Forward-looking Statements:
The statements in this press release regarding the longer-term prospects of Gladstone Investment, SFEG, Enerpac Tool Group Corp. and their management teams, and the ability of Gladstone Investment, SFEG and Enerpac Tool Group Corp. to grow and expand are "forward-looking statements." These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on Gladstone Investment's current plans that are believed to be reasonable as of the date of this press release, a number of factors could cause actual results and conditions to differ materially from these forward-looking statements, including those factors described from time to time in Gladstone Investment's filings with the Securities and Exchange Commission. Gladstone Investment undertakes no obligation to update or revise these forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
For further information: Gladstone Investment Corporation, (703) 287-5893
Gladstone Investment (GAIN - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Gladstone Investment is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Gladstone Investment imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Gladstone InvestmentFor the fiscal year ending March 2027, this business development company is expected to earn $0.91 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Gladstone Investment. Over the past three months, the Zacks Consensus Estimate for the company has increased 2.2%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Gladstone Investment to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
MCLEAN, VA / ACCESS Newswire / June 29, 2026 / Gladstone Investment Corporation (NASDAQ:GAIN) ("Gladstone Investment") announced today that it has entered into a definitive agreement to acquire Extrude Hone, an Irwin, Pennsylvania-based company. Extrude Hone is a leading provider of precision surface-finishing solutions used in mission-critical applications such as aerospace, automotive, heavy industrial, energy and other demanding end markets. The company's proprietary technologies and service capabilities help customers improve product performance, reliability and manufacturing efficiency.
Extrude Hone represents another example of Gladstone Investment's focus on partnering with established lower middle market businesses that hold leading positions in specialized industrial niches. Extrude Hone has built a strong reputation for technical expertise, long-standing customer relationships and mission-critical manufacturing solutions across a diverse set of end markets.
"We are excited to partner with the Extrude Hone management team and support the company's next phase of growth," said Christopher Lee, Executive Vice President of Gladstone Investment. "Extrude Hone has developed a strong market position, differentiated capabilities and a long history of serving customers with highly engineered finishing solutions. We look forward to investing alongside management to build upon that foundation."
"This definitive agreement to acquire Extrude Hone positions us to close on the acquisition subject to a final approval by regulatory authorities. We are pleased that the acquisition will add another quality company to Gladstone Investment's portfolio of operating businesses. We expect it to produce both income for dividends to shareholders and longer-term appreciation for capital gains," said David Dullum, Chief Executive Officer and President of Gladstone Investment.
Gladstone Investment is a publicly traded business development company that seeks to make equity and secured debt investments in lower middle market businesses in the United States in connection with acquisitions, changes in control and recapitalizations. Additional information on the transaction can be found at www.gladstoneinvestment.com.
For Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.gladstone.com.
Forward-looking Statements:
The statements in this press release regarding the longer-term prospects of Gladstone Investment, Extrude Hone, and their management teams, and the ability of Gladstone Investment and Extrude Hone to grow and expand are "forward-looking statements." These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on Gladstone Investment's current plans that are believed to be reasonable as of the date of this press release, a number of factors could cause actual results and conditions to differ materially from these forward-looking statements, including those factors described from time to time in Gladstone Investment's filings with the Securities and Exchange Commission. Gladstone Investment undertakes no obligation to update or revise these forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
For further information: Gladstone Investment Corporation, (703) 287-5893
Dividend stocks are regaining appeal as interest rates fall and market volatility rises, offering higher returns and lower risk over time. Top ten Attractive Low Price Dogs are forecasted to deliver 29.51%–66.09% net gains by June 2027, with average risk 49% below the market. All top ten yield Attractive Low Price Dogs are fairly priced, with dividends from $1K invested exceeding or matching share prices.
Saratoga Investment (NYSE:SAR – Get Free Report) and Gladstone Investment (NASDAQ:GAIN – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.
Profitability This table compares Saratoga Investment and Gladstone Investment’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Saratoga Investment 30.61% 9.19% 3.09% Gladstone Investment 118.55% 6.77% 3.22% Analyst Ratings This is a breakdown of recent ratings for Saratoga Investment and Gladstone Investment, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Saratoga Investment 0 6 0 0 2.00 Gladstone Investment 0 4 1 0 2.20 Saratoga Investment currently has a consensus price target of $23.63, suggesting a potential upside of 3.85%. Given Saratoga Investment’s higher possible upside, analysts clearly believe Saratoga Investment is more favorable than Gladstone Investment.
Institutional & Insider Ownership 19.1% of Saratoga Investment shares are owned by institutional investors. Comparatively, 11.9% of Gladstone Investment shares are owned by institutional investors. 10.0% of Saratoga Investment shares are owned by company insiders. Comparatively, 2.4% of Gladstone Investment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Dividends Saratoga Investment pays an annual dividend of $3.00 per share and has a dividend yield of 13.2%. Gladstone Investment pays an annual dividend of $0.96 per share and has a dividend yield of 6.3%. Saratoga Investment pays out 123.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gladstone Investment pays out 30.9% of its earnings in the form of a dividend.
Valuation and Earnings This table compares Saratoga Investment and Gladstone Investment”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Saratoga Investment $148.85 million 2.48 $28.09 million $2.44 9.32 Gladstone Investment $93.66 million 6.44 $65.32 million $3.11 4.87 Gladstone Investment has lower revenue, but higher earnings than Saratoga Investment. Gladstone Investment is trading at a lower price-to-earnings ratio than Saratoga Investment, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk Saratoga Investment has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Gladstone Investment has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.
Summary Gladstone Investment beats Saratoga Investment on 9 of the 16 factors compared between the two stocks.
About Saratoga Investment (Get Free Report)
Saratoga Investment Corp. is a business development company specializing in leveraged and management buyouts, acquisition financings, growth financings, recapitalization, debt refinancing, and transitional financing transactions at the lower end of middle market companies. It structures its investments as debt and equity by investing through first and second lien loans, mezzanine debt, co-investments, select high yield bonds, senior secured bonds, unsecured bonds, and preferred and common equity. The firm prefers to invest in aerospace, automotive aftermarket and services, business products and services, consumer products and services, education, environmental services, industrial services, financial services, food and beverage, healthcare products and services, logistics, distribution, manufacturing, restaurants services, food services, software services, technology services, specialty chemical, media and telecommunications. It seeks to invest in the United States. The firm primarily invests $5 million to $50 million in companies having EBITDA of $2 million or greater and revenues of $8 million to $250 million. The firm prefer to take a majority stake. It invests through direct lending as well as participation in loan syndicates. The firm was formerly known as GSC Investment Corp. Saratoga Investment Corp. was formed on 2007 and is based in New York, New York with an additional office in Florham Park, New Jersey.
About Gladstone Investment (Get Free Report)
Gladstone Investment Corporation is business development company, specializes in lower middle market, mature stage, buyouts; refinancing existing debt; senior debt securities such as senior loans, senior term loans, lines of credit, and senior notes; senior subordinated debt securities such as senior subordinated loans and senior subordinated notes; junior subordinated debt securities such as subordinated notes and mezzanine loans; limited liability company interests, and warrants or options. The fund does not invest in start-ups. The fund seeks to invest in manufacturing, consumer products and business/consumer services sector. It seeks to invest in small and mid-sized companies based in the United States. The fund prefers to make debt investments between $5 million and $30 million and equity investments between $10 million and $40 million in companies. The fund seeks to invest in companies with revenue between $20 million and $100 million. The fund invests in companies with EBITDA from $3 million to $20 million. It seeks minority equity ownership and prefers to hold a board seat in its portfolio companies. It also prefers to take majority stake in its portfolio companies. The fund typically holds the investments for seven years and exits via sale or recapitalization, initial public offering, or sale to third party.
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Gladstone Investment (GAIN) pays a strong monthly dividend and trades at a slight discount to NAV, buoyed by recent NAV per share gains. GAIN's concentrated portfolio, with 43% in equity and only 29 holdings, increases risk but has driven strong returns and supplemental payouts. Recent management transition appears low-risk, with seasoned internal executives assuming key leadership roles and continuity in strategy.
Gladstone Investment Corporation (NASDAQ:GAIN) pays shareholders $0.08 per share every month, an annualized rate of $0.96. At a share price near $15.36, that works out to a yield just above 6%. The question income investors need to answer is whether that check keeps coming, or whether the tightening coverage picture signals trouble ahead.
GAIN is not an ETF. It is a business development company (BDC), a structure that functions like a closed-end fund investing directly in private businesses. GAIN targets lower middle market companies, deploying capital as secured debt (primarily first lien loans) and equity. The debt generates interest income that funds the monthly distribution. The equity positions, when exited at a profit, generate realized capital gains that fund supplemental distributions paid on top of the regular monthly payment.
How Coverage Has Tightened The monthly distribution is supported by adjusted net investment income (NII), which strips out accounting accruals that distort GAAP results. Over the past four quarters, that coverage has narrowed. Adjusted NII was $0.26 per share in Q4 FY25, $0.24 in Q1 FY26, $0.24 in Q2 FY26, and $0.21 in Q3 FY26. The quarterly distribution obligation is $0.24 (three months at $0.08), meaning the most recent quarter came in below the threshold.
The primary culprit is yield compression. The weighted-average yield on interest-bearing investments fell from 14.1% in Q1 FY26 to 13.4% in Q2 and 12.9% in Q3. That compression tracks directly with the Fed’s rate cuts: the Fed funds rate dropped from 4.5% to 3.75% between October and December 2025. The problem is structural: 52.1% of GAIN’s debt investments sit at interest rate floors, which means further rate cuts would compress income while rate increases offer limited upside for more than half the portfolio.
Interest expense is rising at the same time income is under pressure. Quarterly interest expense averaged roughly $9.2 million in the most recent four quarters, up from roughly $6.4 million in the prior year period, driven by credit facility expansions and new debt issuances including $60 million of 6.875% Notes due 2028.
What Supports the Distribution Several factors argue against an imminent cut. CFO Taylor Ritchie noted on the Q1 FY26 earnings call that “we are comfortable with where we stand right now, and we continue to evaluate it quarter-to-quarter” regarding the company’s spillover income position. That spillover, $0.50 per share in undistributed taxable income, provides a buffer that can support distributions even in quarters where NII falls short.
New investments are also building the income base. GAIN deployed capital into Rowan Energy ($33.1 million), Global GRAB Technologies ($67.6 million), and Smart Chemical Solutions ($49.5 million) across recent quarters. CFO Ritchie noted that “they’ll stay at 13.5% despite any changes in SOFR” due to contractual floors on new deals, which helps stabilize forward income.
NAV per share has climbed to $14.95 in Q3 FY26, driven by $70.23 million in net unrealized appreciation. The stock has returned nearly 25% over the past year, meaning total return investors have done well even as the income picture tightened.
Whether the Monthly Distribution Can Hold The $0.08 monthly distribution is not in immediate danger, but the margin of safety has narrowed. Adjusted NII missed the quarterly distribution threshold in Q3 FY26 for the first time in recent history, and portfolio yields are compressing as rates fall. The spillover buffer and new investment floors provide real protection, but another rate cut cycle or a credit event in the four nonaccrual portfolio companies could push coverage below sustainable levels. The next earnings report, expected around May 13, 2026, will be the clearest signal of whether the trend is stabilizing or deteriorating. For investors who understand BDC risk and can tolerate coverage volatility, the income profile remains intact — for now. Investors expecting rock-solid, recession-proof income should look elsewhere.
Gladstone Investment Corporation (NASDAQ:GAIN) operates an unusual BDC model. Most business development companies generate income from interest on debt loans to private companies. GAIN layers an equity buyout strategy on top, taking ownership stakes in lower-middle-market businesses and realizing capital gains when those companies are sold. This produces two income streams: a steady monthly base distribution funded by net investment income (NII) from debt, and periodic supplemental distributions funded by realized gains from equity exits.
Shares have climbed 14% over the past year and are up 14% year-to-date, recently trading near $15.94. That price now sits above the most recent NAV per share of $14.95, a reversal of prior-quarter discounts.
Two Streams, Two Different Risk Profiles The base monthly distribution of $0.08 per share, when annualized, is $1.50 per share and is funded by NII. Supplemental distributions, which have totaled $0.54 in 2025, $0.70 in 2024, and $0.88 in December 2023, depend entirely on portfolio company sales at a gain. The declining trend reflects fewer large exits, meaning total annual income from GAIN has been shrinking.
This infographic outlines GAIN (Gladstone Investment Corporation)’s unique equity-heavy strategy, illustrating its dual income streams from debt and equity and evaluating the stability of its distributions. It highlights the declining trend in supplemental distributions and tight NII coverage. CEO David Gladstone stated on the fiscal year 2025 earnings call: “We’re not really in that giant buyout game, which seems to be stalled due to a lack of exits in the public marketplace. Others have investments in large buyouts that aren’t liquid, but we typically sell what we put up for sale quickly.” Since its inception through March 2025, GAIN has invested in 62 buyout portfolio companies and generated approximately $353 million in net realized gains.
The Base Distribution Faces Pressure Net investment income coverage remains the key measure of dividend stability, and recent results show that coverage has tightened. Reported NII has softened over the past several quarters, and while the base distribution has been maintained, the most recent period did not fully cover the payout on an adjusted basis. GAAP results were also affected by non‑cash incentive‑fee accruals, which reduce reported income even though the associated fees are not yet payable.
These accruals do not draw cash in the quarter but do represent real economic cost. Total investment income has also come under pressure, reflecting a more challenging yield environment across the portfolio.
Portfolio yields have compressed as well. Weighted‑average yields on interest‑earning assets have declined over recent quarters, consistent with broader trends across the BDC sector. With a meaningful portion of the portfolio at or near interest‑rate floors, further Fed cuts would primarily affect the remaining floating‑rate exposure rather than the entire book. While the retrieved data did not provide a current Fed Funds rate, the broader backdrop of moderating short‑term rates continues to influence portfolio yields, earnings power, and dividend coverage.
Balance Sheet and Spillover Support Management noted that the company ended the fiscal year with meaningful spillover income, providing coverage for the current monthly distribution and the recently declared supplemental payout. The asset‑coverage ratio remains comfortably above the 150% regulatory minimum, and the company has expanded its credit capacity, giving it additional flexibility even as NII coverage has tightened. These balance‑sheet buffers provide a runway should earnings remain under pressure.
NAV per share improved in the most recent quarter, supported by net unrealized appreciation across the portfolio. That recovery reflects genuine mark‑to‑market gains, but unrealized appreciation does not generate cash and therefore cannot directly fund distributions. Dividend sustainability continues to depend on recurring net investment income rather than valuation movements.
Base Distribution Is Defensible, but the Margin Is Narrow The base monthly distribution sits near the edge of coverage. Net investment income has tightened over recent quarters, and the most recent period did not fully cover the payout on an adjusted basis. Portfolio yields have also compressed and have yet to show a sustained recovery. Supplemental distributions have trended lower and remain dependent on realized gains, which are inherently tied to exit timing and therefore outside management’s control.
The base payout appears defensible given the company’s spillover income and balance‑sheet flexibility, but the margin is narrow. The overall structure aligns with how most BDCs balance stable base dividends with variable supplemental payouts.
Monthly income investors rarely get to watch the machinery behind their payout. Gladstone Investment (NASDAQ:GAIN) keeps that machinery unusually visible: a business development company that pays $0.08 a month on the dot, then periodically tops shareholders up with a much larger supplemental check funded by private-company exits. Shares change hands near $16, up about 18% year to date, with a base yield of roughly 5.9% before any supplementals.
How the payout is funded As a BDC, Gladstone earns income from four sources: interest on secured first-lien loans, preferred equity dividends, success fees when portfolio companies refinance or sell, and realized gains on the equity stakes taken alongside those loans. Roughly 28 portfolio companies sit inside a fair-value book of $1.13 billion. The weighted-average yield on interest-bearing investments has drifted from 14% in the first fiscal quarter to 13% in the third, tracking SOFR lower.
The “tweak” is the supplemental. Management pairs the fixed monthly distribution with a separate payout sized to realized gains. Shareholders received a $0.54 supplemental on June 13, 2025 after the Nocturne Luxury Villas exit delivered $3.5 million in success fees and a $19.8 million realized gain. Prior years saw supplementals as high as $0.88 in December 2023 and $0.70 in October 2024, always declared separately rather than baked into the monthly number.
Coverage of the monthly check Quarterly adjusted EPS has to cover three monthly payments totaling $0.24. The recent run: $0.26 in Q4 FY25, $0.24 in Q1 FY26, $0.24 in Q2 FY26, and $0.21 in Q3 FY26. Three of the last four quarters cleared the hurdle; the Q3 miss reflected total investment income of $25 million, a 40% year-over-year drop driven by the lumpy timing of success and dividend income.
GAAP tells a noisier story. Q3 FY26 swung to a GAAP loss of $0.16 because of a $15 million capital-gains-based incentive fee accrual that is not yet contractually due. That accrual is a non-cash expense created by unrealized appreciation; it pressures reported earnings but does not drain the cash pool that actually funds the dividend.
Structural risks Two pressures deserve attention. 52% of debt investments sit at their interest rate floor, so the 75 basis points of Fed cuts over the past year (target upper bound now 3.75%) compress future coupon income. Realized losses also happen: a $29.9 million loss on J.R. Hobbs in Q2 FY26 was absorbed, but repeat events would erode NAV and the supplemental engine.
The offsets are real. NAV per share climbed to $15 from $14 the prior quarter on $70 million of net unrealized appreciation. The credit facility was expanded from $270 million to $300 million, fresh 6.875% Notes due 2028 refinanced older paper at lower rates, and the ATM program has sold shares above NAV, which is accretive to existing holders.
Where this leaves income investors The $0.08 monthly base looks safe, with a 16-plus-year record of uninterrupted monthly payments and adjusted NII generally covering the run-rate. Supplementals, by design, are variable and tied to exit timing, not guaranteed. Income-focused investors comfortable with lumpy top-ups and BDC-level credit risk have a coherent setup here; anyone treating the headline yield plus supplementals as a fixed figure should size positions accordingly. Total return has worked so far, with the stock up 32% over the past year.
The market has spent much of 2026 stuck between two competing forces — stubbornly high interest rates and a growing expectation they’ll eventually fall. That tension has left income investors asking a simple question: where can you still find a reliable yield without taking on outsized risk?
Monthly dividend stocks are an obvious place to look. But not all of them are built the same. So where does Main Street Capital (NYSE:MAIN | MAIN Price Prediction) fit in — and could it really be the best monthly dividend stock to buy right now?
Why BDCs Play by Different Rules Let’s start with the structure, because it matters. Main Street Capital is a business development company (BDC). That’s a fancy way of saying it provides financing — primarily debt and some equity — to lower middle-market companies that don’t have easy access to traditional bank funding. In exchange, it earns interest income and occasionally equity upside.
Here’s what separates BDCs from typical dividend stocks:
They must distribute at least 90% of taxable income to shareholders, similar to real estate investment trusts (REITS) That leads to higher yields, but also limits retained earnings Earnings are best measured by net investment income (NII), not EPS That last point is critical. Traditional metrics like P/E ratios can mislead investors because they don’t reflect how cash actually flows through a BDC. Instead, savvy investors focus on NII per share, net asset value (NAV), and dividend coverage ratio.
That’s the lens we need to evaluate MAIN properly.
How MAIN Stacks Up Against Its Peers Let’s not box Main Street into a single comparison because it doesn’t fit neatly into one. If you’re buying the BDC for monthly income, you need to compare it to the few BDCs that actually pay monthly. But if you’re judging whether its premium valuation is justified, you also need to see how it stacks up against the highest-quality BDCs overall.
Let’s look at both — because each answers a different question.
Monthly Dividend BDCs: The True Income Comparison There aren’t many — which is exactly why MAIN stands out.
Metric Main Street Capital Gladstone Investment (NASDAQ:GAIN) Gladstone Capital (NASDAQ:GLAD) Dividend Frequency Monthly Monthly Monthly Base Yield ~6.5% ~6% ~8% Price/NAV ~1.6–1.8x ~1.2–1.3x ~1.0–1.1x Specials Yes (semi-regular) Yes (frequent) Occasional NII Coverage >100% Variable Less consistent Here’s what the numbers tell us:
Gladstone Investment comes closest to Main Street’s hybrid model of income plus equity upside, but its results have been less consistent. Gladstone Capital offers a higher yield, but that income has shown more variability and weaker coverage at times. Main Street Capital doesn’t lead on yield, but it does lead on consistency and coverage, which is what income investors rely on when the market gets choppy.
Best-in-Class BDCs: The Valuation Reality Check Now let’s zoom out. Because monthly payments don’t mean much if the underlying business isn’t strong.
Metric Main Street Capital Ares Capital (NASDAQ:ARCC) Dividend Yield ~6.5% base ~9% Price/NAV ~1.6–1.8x ~1.1x Dividend Frequency Monthly Quarterly NII Coverage >100% ~100% Scale Lower middle market focus Large-cap sponsor-backed deals Here’s what stands out: Ares Capital offers a higher yield and trades closer to NAV, while Main Street trades at a 50% to 70% premium — and has for years.
Key Takeaway That premium isn’t random. It reflects the BDC’s long history of NAV growth, more conservative underwriting, and internally managed operations that keep costs lower over time. That suggests investors are willing to accept a lower yield in exchange for greater reliability.
However, valuation still matters. At current levels, Main Street looks like a solid buy for long-term income investors, and if shares pull back closer to 1.4x NAV or below, that would signal a more aggressive entry point. In any case, the stock’s premium has been durable — and justified by performance.
Yet, investors should be realistic. You’re not buying Main Street for maximum income today. You’re buying it for dependable income over time. If the stock dips, lean in more aggressively. If it doesn’t, it still deserves a place on a watchlist — or in a diversified income portfolio.
When all is said and done, Main Street Capital may not be the cheapest BDC — but it makes a strong case as one of the best.
Southside Bancshares (SBSI - Free Report) came out with quarterly earnings of $0.78 per share, beating the Zacks Consensus Estimate of $0.76 per share. This compares to earnings of $0.71 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.19%. A quarter ago, it was expected that this holding company for Southside Bank would post earnings of $0.8 per share when it actually produced earnings of $0.7, delivering a surprise of -12.5%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Southside Bancshares, which belongs to the Zacks Banks - Southwest industry, posted revenues of $72.15 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.66%. This compares to year-ago revenues of $66.43 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Southside Bancshares shares have added about 7.3% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Southside Bancshares?While Southside Bancshares has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Southside Bancshares was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.82 on $73.1 million in revenues for the coming quarter and $3.24 on $294.55 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southwest is currently in the top 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Finance sector, Gladstone Investment (GAIN - Free Report) , is yet to report results for the quarter ended March 2026.
This business development company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of -15.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Gladstone Investment's revenues are expected to be $25.14 million, down 8.8% from the year-ago quarter.
Gladstone Investment (NASDAQ:GAIN) is the income-focused business development company that pays shareholders a $0.08 monthly distribution plus periodic supplemental payouts tied to portfolio exits. Income investors lean on GAIN for that monthly check, so the Q3 FY26 earnings miss reported February 3, 2026, where adjusted EPS came in at $0.21 against a $0.2275 estimate, raised a fair question: is the GAIN distribution still safe? The short answer is yes, but with caveats worth understanding before the next check hits your account.
How GAIN generates the income it pays out Gladstone Investment is a BDC that makes secured debt and equity investments in lower middle market businesses, then funnels three streams of cash back to shareholders: interest on its loans, dividend income from equity stakes, and success fees plus realized gains when portfolio companies exit. The base monthly $0.08 is funded primarily by interest income. Supplemental distributions, like the $0.54 paid in June 2025, come from capital gains such as the Nocturne Luxury Villas exit that generated a $19.8M realized gain.
The coverage math is tightening Adjusted net investment income covers the base distribution, but the cushion is shrinking. Q3 FY26 adjusted EPS of $0.21 came in below the $0.24 quarterly base distribution rate ($0.08 times three months), the first such shortfall in recent quarters. Compared to Q2 FY26 adjusted EPS of $0.24 and Q1 FY26 adjusted EPS of $0.24, the trend is unmistakable. For a BDC whose entire promise is reliable monthly income, generating less than you pay out for even a single quarter matters.
The driver is yield compression in the loan book. The weighted-average yield on interest-bearing investments fell from 14.1% in Q1 FY26 to 13.4% in Q2 to 12.9% in Q3. With 52.1% of debt investments at interest rate floors, GAIN cannot ride rates back up easily, and the Fed has already cut 0.75 percentage points over the past year to 3.75%, which pulls SOFR-linked coupons lower.
Why the GAAP loss looks scarier than it is Q3 FY26 showed a GAAP net investment loss of $0.16 per share, but the cause was a $14.75 million accrual for capital gains-based incentive fees that are not yet contractually due. That is an accounting reservation against future fees, not cash leaving the building. NAV per share actually rose to $14.95 from $13.53 sequentially, lifted by $70.23M of unrealized appreciation, which is the opposite of a fund eroding its capital base to fund distributions.
Balance sheet supports the payout Management reinforced the capital stack. The credit facility expanded from $270M to $300M in Q3 FY26, and the company priced a $100M offering of 7.125% Notes due 2031 on April 9, 2026, with proceeds going to repay the revolver and fund new investments. Asset coverage sits at 189%, well above the 150% regulatory minimum, and the spillover taxable income was roughly $0.50 per share after the June supplemental, which is essentially pre-funded distribution capacity.
Total return tells a kinder story Shares are around $17 today, up 23% since the February 3 earnings filing and 34% over the past year. The 5.7% trailing dividend yield understates the picture because it excludes supplementals. With base monthly plus typical supplemental payouts, GAIN holders have collected meaningful income on top of price appreciation.
Verdict: safe for now, watch the May 12 earnings report The base $0.08 monthly distribution is not in immediate danger. Coverage is thinner than it was, but spillover income, a rising NAV, refreshed credit lines, and a payout ratio around 31% all argue for continuity. The supplemental distribution is a different question, since those rely on exits and realized gains, which are inherently lumpy. Holders should watch the Q4 FY26 release on May 12, 2026, where the $0.22 EPS consensus would once again fall short of the $0.24 quarterly base rate. Two consecutive quarters of under-coverage would shift this from a yellow flag to a red one. For investors who want a similar income thesis with less single-manager risk, the broader VanEck BDC Income ETF (NYSEARCA:BIZD) spreads the bet across the BDC sector and removes the supplemental-distribution lottery from the equation.
By webcast -- Log on to the web at the address above
By phone -- please call (866) 373-3416
Contact:
Gladstone Investment Corporation, (703) 287-5893
A conference call replay will be available beginning after the call and will be accessible through May 20, 2026. To hear the replay, please dial (877) 660-6853 and use playback conference number 13759089.
If you are unable to participate during the live webcast, the call will be archived on the website www.gladstoneinvestment.com. The event will be archived and available for replay on the Company's website.
Gladstone Investment Corporation is a publicly traded business development company that seeks to make secured debt and equity investments in lower middle market businesses in the United States in connection with acquisitions, changes in control and recapitalizations.
For further information: Gladstone Investment Corporation, (703) 287-5893
Earnings MCLEAN, VA / ACCESS Newswire / May 12, 2026 / Gladstone Investment Corporation (Nasdaq:GAIN) (the "Company") today announced earnings for its fourth quarter and fiscal year ended March 31, 2026. Please read the Company's Annual Report on Form 10-K, filed today with the U.S. Securities and Exchange Commission (the "SEC"), which is available on the SEC's website at www.sec.gov or the investors section of the Company's website at www.gladstoneinvestment.com.
Summary Information: (dollars in thousands, except per share data (unaudited)):
March 31,
2026
December 31,
2025
$
Change
%
Change
For the quarter ended:
Total investment income
$
25,192
$
25,062
$
130
0.5
%
Total expenses, net(A)
35,802
31,571
4,231
13.4
%
Net investment loss(A)
(10,610
)
(6,509
)
(4,101
)
63.0
%
Net realized gain
163
2,180
(2,017
)
(92.5
)%
Net unrealized appreciation
92,821
70,227
22,594
32.2
%
Net increase in net assets resulting from operations(A)
$
82,374
$
65,898
$
16,476
25.0
%
Net investment loss per weighted-average common share(A)
$
(0.27
)
$
(0.16
)
$
(0.11
)
68.8
%
Adjusted net investment income per weighted-average common share(B)
$
0.20
$
0.21
$
(0.01
)
(4.8
)%
Net increase in net assets resulting from operations per weighted-average common share(A)
$
2.07
$
1.66
$
0.41
24.7
%
Cash distribution per common share from net investment income(C)
$
0.24
$
0.24
$
-
-
%
Cash distribution per common share from cumulative net realized gains(C)
$
-
$
-
$
-
-
%
Weighted-average yield on interest-bearing investments
12.9
%
12.9
%
-
%
-
%
Total dollars invested
$
2,300
$
37,438
$
(35,138
)
(93.9
)%
Total dollars repaid and/or collected from sales and
recapitalization of investments
$
8,513
$
19,221
$
(10,708
)
(55.7
)%
Weighted-average shares of common stock outstanding - basic and diluted
39,821,967
39,678,402
143,565
0.4
%
Total shares of common stock outstanding
39,821,967
39,821,967
-
-
%
As of:
Total investments, at fair value
$
1,309,248
$
1,222,792
$
86,456
7.1
%
Fair value, as a percent of cost
124.4
%
115.5
%
8.9
%
7.7
%
Number of portfolio companies
29
29
-
-
%
Net assets
$
668,225
$
595,408
$
72,817
12.2
%
Net asset value per common share
$
16.78
$
14.95
$
1.83
12.2
%
Total distributable earnings
$
181,468
$
108,702
$
72,766
66.9
%
Total distributable earnings per common share
$
4.56
$
2.73
$
1.83
67.0
%
Estimated spillover
$
21,283
$
22,943
$
(1,660
)
(7.2
)%
Estimated spillover per common share
$
0.53
$
0.58
$
(0.05
)
(8.6
)%
March 31,
2026
March 31,
2025
$
Change
%
Change
For the year ended:
Total investment income
$
99,077
$
93,662
$
5,415
5.8
%
Total expenses, net(A)
102,829
65,567
37,262
56.8
%
Net investment (loss) income(A)
(3,752
)
28,095
(31,847
)
NM
Net realized (loss) gain
(27,595
)
63,184
(90,779
)
NM
Net unrealized appreciation (depreciation)
216,100
(25,960
)
242,060
NM
Net increase in net assets resulting from operations(A)
$
184,753
$
65,319
$
119,434
182.8
%
Net investment (loss) income per weighted-average common share(A)
$
(0.10
)
$
0.76
$
(0.86
)
NM
Adjusted net investment income per weighted-average common share(B)
$
0.88
$
0.97
$
(0.09
)
(9.3
)%
Net increase in net assets resulting from operations per weighted-average common share(A)
$
4.77
$
1.78
$
2.99
168.0
%
Cash distribution per common share from net investment income(C)
$
0.99
$
0.64
$
0.35
54.7
%
Cash distribution per common share from cumulative net realized gains(C)
$
0.51
$
1.02
$
(0.51
)
(50.0
)%
Weighted-average yield on interest-bearing investments
13.3
%
13.9
%
(0.6
)%
(4.2
)%
Total dollars invested
$
173,616
$
221,217
$
(47,601
)
(21.5
)%
Total dollars repaid and/or collected from sales and
recapitalization of investments
$
33,540
$
199,625
$
(166,085
)
(83.2
)%
Weighted-average shares of common stock outstanding - basic and diluted
38,712,611
36,735,218
1,977,393
5.4
%
Total shares of common stock outstanding
39,821,967
36,837,381
2,984,586
8.1
%
As of:
Total investments, at fair value
$
1,309,248
$
979,320
$
329,928
33.7
%
Fair value, as a percent of cost
124.4
%
104.3
%
20.1
%
19.3
%
Number of portfolio companies
29
25
4
16.0
%
Net assets
$
668,225
$
499,084
$
169,141
33.9
%
Net asset value per common share
$
16.78
$
13.55
$
3.23
23.8
%
Total distributable earnings
$
181,468
$
53,535
$
127,933
239.0
%
Total distributable earnings per common share
$
4.56
$
1.45
$
3.11
214.5
%
Estimated spillover
$
21,283
$
55,337
$
(34,054
)
(61.5
)%
Estimated spillover per common share
$
0.53
$
1.50
$
(0.97
)
(64.7
)%
NM = Not Meaningful
(A)
Inclusive of $18.5 million, or $0.47 per weighted-average common share, and $14.7 million, or $0.37 per weighted-average common share, of capital gains-based incentive fees accrued during the three months ended March 31, 2026 and December 31, 2025, respectively; and $38.0 million, or $0.98 per weighted-average common share, and $7.4 million, or $0.21 per weighted-average common share, of capital-gains based incentive fees accrued during the years ended March 31, 2026 and March 31, 2025, respectively. These fees were accrued in accordance with United States generally accepted accounting principles ("GAAP"), where such amounts were not contractually due under the terms of the investment advisory agreement for the respective periods. Also see discussion under Non-GAAP Financial Measure - Adjusted Net Investment Income below.
(B)
See Non-GAAP Financial Measure - Adjusted Net Investment Income, below, for a description of this non-GAAP measure and a reconciliation from Net investment income (loss) to Adjusted net investment income, including on a weighted-average per share basis. The Company uses this non-GAAP financial measure internally in analyzing financial results and believes it is useful to investors as an additional tool to evaluate ongoing results and trends for the Company.
(C)
Estimates of tax characterization made on a quarterly basis may not be representative of the actual tax characterization of distributions for the full year. Estimates made on a quarterly basis are updated as of each interim reporting date.
Highlights for the Quarter: During the quarter ended March 31, 2026, the following significant events occurred:
Distributions and Dividends:
Paid an $0.08 per common share monthly distribution to common stockholders in each of January, February, and March 2026.
Financing Activity:
Issued 7.125% Notes due 2031 with an aggregate principal amount of $100.0 million.
Fourth Quarter Results: Net investment loss for the quarter ended March 31, 2026 was $10.6 million, or $0.27 per weighted-average common share, compared to net investment loss for the quarter ended December 31, 2025 of $6.5 million, or $0.16 per weighted-average common share. This change was a result of an increase in total expenses, net of credits, partially offset by an increase in total investment income, quarter over quarter.
Total investment income for the quarters ended March 31, 2026 and December 31, 2025 was $25.2 million and $25.1 million, respectively. The quarter over quarter increase was primarily due to a $0.4 million increase in dividend and success fee income, the timing of which can be variable, partially offset by a $0.2 million decrease in interest income, primarily due to the partial repayment of certain existing debt investments.
Total expenses, net of credits, for the quarters ended March 31, 2026 and December 31, 2025 was $35.8 million and $31.6 million, respectively. The increase quarter over quarter was primarily due to a $3.8 million increase in accruals for capital gains-based incentive fees in the current quarter, as a result of the net impact of realized and unrealized gains and losses, a $0.4 million increase in base management fee and a $0.1 million decrease in credits from Adviser. These amounts were partially offset by a $0.4 million decrease in other expenses.
Net asset value per common share as of March 31, 2026 was $16.78 compared to $14.95 as of December 31, 2025. The quarter over quarter increase was primarily due to $92.5 million, or $2.32 per common share, of net unrealized appreciation of investments. The increase was partially offset by $10.6 million, or $0.27 per common share, of net investment loss and $9.6 million, or $0.24 per common share, of distributions paid to common stockholders.
Highlights for the Year: During the year ended March 31, 2026, the following significant events occurred:
Portfolio Activity:
In May 2025, we invested $49.5 million in a new portfolio company, Smart Chemical Solutions, LLC ("Smart Chemical"), in the form of $35.7 million of secured first lien debt and $13.8 million of preferred equity. Smart Chemical, headquartered in Midland, Texas, is a leading provider of production chemicals for onshore oil and gas operators throughout the United States.
In May 2025, we invested $12.8 million in a new portfolio company, Sun State Nursery and Landscaping, LLC ("Sun State"), in the form of $9.8 million of secured first lien debt and $3.1 million of preferred equity. Sun State, headquartered in Jacksonville, Florida, is a leading commercial landscaping installation and maintenance provider in the Jacksonville area.
In June 2025, we restructured our investment in PSI Molded Plastics, Inc. As a result of the restructuring, we converted debt with a cost basis of $10.6 million into preferred equity.
In July 2025, we invested $67.6 million in a new portfolio company, Global GRAB Technologies, Inc. ("Global GRAB"), in the form of $46.5 million of secured first lien debt and $21.1 million of preferred equity. Global GRAB, headquartered in Franklin, Tennessee, is a provider of turnkey perimeter security and hostile vehicle mitigation systems, serving various government and commercial organizations.
In September 2025, we entered into a new $20.0 million secured first lien term loan with J.R. Hobbs Co. - Atlanta, LLC ("J.R. Hobbs"), restructuring our previously outstanding first lien term loans and line of credit with an aggregate total cost basis of $49.9 million, which resulted in a realized loss of $29.9 million.
In December 2025, we invested $33.1 million in a new portfolio company, Rowan Energy Inc. ("Rowan"), in the form of $25.8 million of secured first lien debt and $7.3 million of preferred equity. Rowan, headquartered in Arcadia, Oklahoma, specializes in advanced frac sand filtration, completion-equipment deployment and field-operations support.
Distributions and Dividends:
Paid an $0.08 per common share distribution to common stockholders each month from April 2025 through March 2026; and
Paid a $0.54 per common share supplemental distribution to common stockholders in June 2025.
At-the-market ("ATM") program activity:
Sold 2,984,586 shares of our common stock under our common stock ATM program at a weighted-average gross price of $14.12 per share and raised approximately $41.5 million in net proceeds. These sales were above our then current NAV per share.
Financing Activities:
Issued 6.875% Notes due 2028 with an aggregate principal amount of $60.0 million.
Amended our credit facility, increasing the size from $270.0 million to $300.0 million.
Voluntarily redeemed the 8.00% Notes due 2028 with an aggregate principal amount of $74.8 million.
Issued 7.125% Notes due 2031 with an aggregate principal amount of $100.0 million.
Fiscal Year End Results: Net investment loss for the year ended March 31, 2026 was $3.8 million, or $0.10 per weighted-average common share, compared to net investment income for the year ended March 31, 2025 of $28.1 million, or $0.76 per weighted-average common share. This change was a result of an increase in total expenses, net of credits, partially offset by total investment income, year over year.
Total investment income for the years ended March 31, 2026 and 2025 was $99.1 million and $93.7 million, respectively. The year over year increase was primarily due to a $6.1 million increase in interest income, partially offset by a $0.7 million decrease in dividend and success fee income, related to fees that did not reoccur in the current fiscal year, as the timing of such fee income can be variable. The increase in interest income was primarily due to an increase in the weighted-average principal balance of our interest-bearing investments, due to the additional debt investments made during the year, partially offset by a decrease in the weighted-average yield on interest-bearing investments, resulting from a decrease in SOFR.
Total expenses, net of credits, for the years ended March 31, 2026 and 2025 was $102.8 million and $65.6 million, respectively. The increase year over year was primarily due to a $30.5 million increase in accruals for capital gains-based incentive fees in the current year, as a result of the net impact of realized and unrealized gains and losses, an $8.9 million increase in interest expense, related to the issuance of the 7.875% 2030 Notes in December 2024, the 6.875% 2028 Notes in November 2025 and the 7.125% 2031 Notes in February 2026 and increased borrowings on the credit facility, partially offset by a decrease in the effective interest rate and the redemption of the 8.00% 2028 Notes in December 2025, and a $3.7 million increase in base management fee.
Net asset value per common share as of March 31, 2026 was $16.78 compared to $13.55 as of March 31, 2025. The year over year increase was primarily due to $216.1 million, or $5.58 per common share, of net unrealized appreciation of investments, which included $197.0 million, or $5.09 per common share, of unrealized appreciation and $19.1 million, or $0.49 per common share, of reversal of unrealized depreciation on our investment in J.R. Hobbs upon its restructure, and $0.07 per common share of net accretive effect of equity offerings. These increases were partially offset by $57.2 million, or $1.50 per common share, of distributions paid to common stockholders, $26.3 million, or $0.68 per common share, of net realized losses on investments, $3.8 million, or $0.10 per common share, of net investment loss and $1.3 million, or $0.03 of realized loss on other upon the redemption of the 8.00% Notes due 2028.
The following table provides relevant information related to our notes payable and Credit Facility as of March 31, 2026:
Interest Rate
Aggregate Principal Amount
Notes Payable
5.00% 2026 Notes(A)
5.00%
$
127,938
4.875% 2028 Notes
4.875%
134,550
7.875% 2030 Notes
7.875%
126,500
6.875% 2028 Notes
6.875%
60,000
7.125% 2031 Notes
7.125%
100,000
Total notes payable
$
548,988
Credit Facility (B)
Commitment amount
SOFR + 3.25%
$
300,000
Borrowings outstanding at cost
$
23,900
Availability(C)
$
276,100
Percentage of borrowings at:(D)
Fixed rate
95.8
%
Floating rate
4.2
%
(A)
On May 1, 2026, we repaid the 5.00% 2026 Notes at maturity.
(B)
The Credit Facility bears interest at 30-day Term Secured Overnight Financing Rate ("SOFR").
(C)
Availability is subject to various constraints, characteristics and applicable advance rates based on collateral quality under our Credit Facility, which equated to an adjusted availability of $276.1 million as of March 31, 2026.
(D)
The percentage uses the Credit Facility borrowings outstanding at cost as of March 31, 2026. The fixed rate borrowings consist of the outstanding notes payable. The floating rate borrowings consist of the Credit Facility borrowings outstanding at cost.
The following table presents certain selected information regarding the debt investments of our portfolio companies as of March 31, 2026:
March 31, 2026(A)(B)
Weighted average interest rate of debt investments
12.9
%
Weighted average interest rate floor of debt investments
12.1
%
Current percentage of debt investments at interest rate floor
52.5
%
Weighted average interest rate of debt investments assuming:
25 basis points decrease in SOFR
12.8
%
50 basis points decrease in SOFR
12.7
%
75 basis points decrease in SOFR
12.6
%
100 basis points decrease in SOFR
12.5
%
(A)
Debt investments presented exclude line of credit commitments and all debt investments on non-accrual status as of March 31, 2026. The weighted average interest rate is based on the cost balance of the debt investments.
(B)
As of March 31, 2026, 100.0% of our debt investments are variable rates with a floor and are indexed to 30-day SOFR. The interest rate is the greater of the floor or the total of SOFR plus a spread. As of March 31, 2026, we did not have any loans with a paid-in-kind interest component.
Subsequent Events: After March 31, 2026, the following significant events occurred:
Distributions and dividends: In April 2026, our Board of Directors declared the following monthly distributions to common stockholders:
Record Date
Payment Date
Distribution per Common Share
April 24, 2026
April 30, 2026
$
0.08
May 20, 2026
May 29, 2026
0.08
June 23, 2026
June 30, 2026
0.08
Total for the Quarter:
$
0.24
Notes Payable: On May 1, 2026, we repaid the 5.00% Notes due 2026 with an aggregate principal amount outstanding of $127.9 million at maturity.
Non-GAAP Financial Measure - Adjusted Net Investment Income: On a supplemental basis, the Company discloses Adjusted net investment income, including on a weighted-average per share basis, which is a financial measure that is calculated and presented on a basis of methodology other than in accordance with GAAP. Adjusted net investment income represents net investment (loss) income, excluding capital gains-based incentive fees. The Company uses this non-GAAP financial measure internally in analyzing financial results and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company. The Company's investment advisory agreement provides that a capital gains-based incentive fee is determined and paid annually with respect to realized capital gains (but not unrealized appreciation) to the extent such realized capital gains exceed realized capital losses and unrealized depreciation on investments for such year. However, under GAAP, a capital gains-based incentive fee is accrued if realized capital gains and unrealized appreciation of investments exceed realized capital losses and unrealized depreciation of investments. Refer to Note 4 - Related Party Transactions in our Annual Report on Form 10-K for further discussion. The Company believes that Adjusted net investment income is a useful indicator of operations exclusive of any capital gains-based incentive fees, as net investment (loss) income does not include realized or unrealized investment activity associated with the capital gains-based incentive fee.
The following table provides a reconciliation of net investment (loss) income (the most comparable GAAP measure) to Adjusted net investment income for the periods presented (dollars in thousands, except per share amounts; unaudited):
For the quarter ended
March 31, 2026
December 31, 2025
Amount
Per Share
Amount
Amount
Per Share
Amount
Net investment loss
$
(10,610
)
$
(0.27
)
$
(6,509
)
$
(0.16
)
Capital gains-based incentive fee
18,533
0.47
14,749
0.37
Adjusted net investment income
$
7,923
$
0.20
$
8,240
$
0.21
Weighted-average shares of common stock outstanding - basic and diluted
39,821,967
39,678,402
For the year ended
March 31, 2026
March 31, 2025
Amount
Per Share
Amount
Amount
Per Share
Amount
Net investment (loss) income
$
(3,752
)
$
(0.10
)
$
28,095
$
0.76
Capital gains-based incentive fee
37,970
0.98
7,445
0.21
Adjusted net investment income
$
34,218
$
0.88
$
35,540
$
0.97
Weighted-average shares of common stock outstanding - basic and diluted
38,712,611
36,735,218
Adjusted net investment income may not be comparable to similar measures presented by other companies, as it is a non-GAAP financial measure that is not based on a comprehensive set of accounting rules or principles and therefore may be defined differently by other companies. In addition, Adjusted net investment income should be considered in addition to, not as a substitute for, or superior to, financial measures determined in accordance with GAAP.
Conference Call: The Company will hold its earnings release conference call on Wednesday, May 13, 2026, at 8:30 a.m. Eastern Time. Please call (866) 373-3416 to enter the conference call. An operator will monitor the call and set a queue for any questions. A replay of the conference call will be available through May 20, 2026. To hear the replay, please dial (877) 660-6853 and use the playback conference number 13759089. The replay will be available after the call concludes. The live audio broadcast of the Company's quarterly conference call will also be available online at www.gladstoneinvestment.com. The event will be archived and available for replay on the Company's website.
About Gladstone Investment Corporation: Gladstone Investment Corporation is a publicly traded business development company that seeks to make secured debt and equity investments in lower middle market businesses in the United States in connection with acquisitions, changes in control and recapitalizations. Information on the business activities of all the Gladstone funds can be found at www.gladstonecompanies.com.
To obtain a paper copy of our Annual Report on Form 10-K, filed today with the SEC, please contact the Company at 1521 Westbranch Drive, Suite 100, McLean, VA 22102, ATTN: Investor Relations. The financial information above is not comprehensive and is without notes, so readers should obtain and carefully review the Company's Form 10-K for the year ended March 31, 2026, including the notes to the consolidated financial statements contained therein.
Investor Relations Inquiries: Please visit ir.gladstoneinvestment.com or call (703) 287-5893.
Forward-looking Statements:
The statements in this press release regarding potential future distributions, earnings and operations of the Company are "forward-looking statements." These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on the Company's current plans that are believed to be reasonable as of the date of this press release, a number of factors could cause actual results and conditions to differ materially from these forward-looking statements, including those factors described from time to time in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or otherwise, except as required by law.
Gladstone Investment (GAIN - Free Report) came out with quarterly earnings of $0.2 per share, missing the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -9.09%. A quarter ago, it was expected that this business development company would post earnings of $0.24 per share when it actually produced earnings of $0.21, delivering a surprise of -12.5%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Gladstone Investment, which belongs to the Zacks Financial - SBIC & Commercial Industry industry, posted revenues of $25.19 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.21%. This compares to year-ago revenues of $27.55 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Gladstone Investment shares have added about 18% since the beginning of the year versus the S&P 500's gain of 8.3%.
What's Next for Gladstone Investment?While Gladstone Investment has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Gladstone Investment was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.24 on $25.36 million in revenues for the coming quarter and $0.89 on $102.92 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - SBIC & Commercial Industry is currently in the bottom 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Crescent Capital BDC (CCAP - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 13.
This company is expected to post quarterly earnings of $0.41 per share in its upcoming report, which represents a year-over-year change of -8.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Crescent Capital BDC's revenues are expected to be $38.82 million, down 7.9% from the year-ago quarter.
Gladstone Investment NASDAQ: GAIN reported what management described as solid results for its fiscal fourth quarter and year ended March 31, 2026, citing portfolio growth, higher total investment income and a significant increase in net asset value.
CEO and President David Dullum said the business development company generated adjusted net investment income of $0.88 per share for the fiscal year and grew the fair value of its investment portfolio to $1.3 billion as of March 31, up 34% from $979 million a year earlier. He attributed the increase to four new buyout investments, appreciation in the existing portfolio and an increase in NAV per share.
“We also continue to see growth in our investment portfolio through new buyout investments and the improving performance at a number of our existing portfolio companies,” Dullum said. The company currently has 29 operating companies in its portfolio, he added.
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Portfolio Growth Driven by New Buyouts and Appreciation Gladstone Investment invested approximately $163 million in four new portfolio companies during fiscal 2026, compared with about $221 million invested in the prior year. Dullum said the deals were consistent with the company’s buyout strategy, under which it typically seeks to become the majority economic owner and provides both equity and debt capital.
He said the debt investments are intended to generate operating income to support monthly distributions, while equity investments provide potential upside through capital gains upon exit. Dullum also emphasized that the company sets floors on its debt securities, which he said helps maintain income above its cost of capital and reduces exposure to spread compression.
Since inception in 2005 through March 31, 2026, Gladstone Investment has invested in 66 buyout portfolio companies for an aggregate of approximately $2.2 billion and has exited 33 companies. Those exits generated about $354 million in net realized gains and $45 million in other income on exit, according to Dullum.
Income Rises, While Quarterly Adjusted NII Trails Dividend CFO and Treasurer Taylor Ritchie said Gladstone Investment ended fiscal 2026 with its fifth consecutive year of earned total investment income, generating $99.1 million compared with $93.7 million in the prior fiscal year. The increase was primarily driven by higher interest income from growth in the debt investment portfolio, partially offset by lower dividend and success fee income.
The weighted average principal balance of interest-bearing investments was $672 million for the fiscal year, up about $70 million from the prior year. The portfolio’s weighted average yield declined to 13.3% from 13.9%. Ritchie said embedded interest rate floors helped reduce the impact of declining benchmark rates, noting that the portfolio yield decline of 63 basis points was less than the 82 basis point decline in SOFR during the year.
For the fiscal fourth quarter, total investment income was $25.2 million, slightly above $25.1 million in the prior quarter. Adjusted net investment income, which excludes capital gains-based incentive fee accruals, was $7.9 million, or $0.20 per share, compared with $8.2 million, or $0.21 per share, in the prior quarter.
Net expenses increased to $35.8 million from $31.6 million in the prior quarter, driven primarily by a $3.8 million increase in capital gains incentive fee accruals and a $0.4 million increase in base management fees. The company reported a net investment loss of $10.6 million for the quarter, compared with a net investment loss of $6.5 million in the prior quarter.
In response to a question from Erik Zwick of Lucid Capital Markets about adjusted NII per share coming in below the dividend level in the last two quarters, Ritchie said the company ended the year with $21.3 million, or $0.53 per share, in spillover income. She said that amount is sufficient to cover the current $0.08 per share monthly distribution for approximately six months.
“We still feel confident in our $0.08 per share monthly distribution rate and don’t really envision that changing,” Ritchie said.
NAV Increases on Unrealized Appreciation Gladstone Investment’s NAV rose to $16.78 per share as of March 31, 2026, from $14.95 per share at the end of the prior quarter. Ritchie said the increase was primarily due to $2.32 per share of net unrealized appreciation on investments, partially offset by $0.27 per share of net investment loss and $0.24 per share of distributions to common shareholders.
Portfolio valuations increased by $92.5 million during the quarter. Ritchie said the unrealized appreciation was driven by improved operating performance at several portfolio companies and higher valuation multiples, partially offset by weaker performance at certain other companies.
The company continues to have three portfolio companies on non-accrual status, representing 3.8% of the total portfolio at cost and 0.7% at fair value. Dullum said during the Q&A session that Diligent Delivery Systems, one of the non-accrual investments, is improving and could potentially return to accrual status, though he did not provide a specific timeline.
Regarding the other non-accrual investments, Dullum said one is a small investment where the company may take action to “eliminate the issue,” while B&T is “performing fairly well.” He said he does not expect much change with those two companies over the next six months and added, “I’m not concerned about our non-accrual situation.”
Liquidity and Capital Structure Remain in Focus Ritchie said maintaining liquidity and financial flexibility remains essential as the company supports and grows its portfolio. In February, Gladstone Investment issued $100 million of 2.125% five-year notes in anticipation of the maturity of its 5% notes. After quarter-end, the company repaid the outstanding balance of the 5% notes using proceeds from the new issuance and borrowings on its credit facilities.
The company was not active under its common stock at-the-market program during the quarter or after quarter-end, but Ritchie said management would remain opportunistic and use the program when prices are accretive to NAV.
As of March 31, 2026, Gladstone Investment had an asset coverage ratio of 214% and a debt-to-equity ratio of 0.84 times. Ritchie described the company’s leverage as conservative.
Management Highlights Pipeline and Competitive Position Erika Highland, currently executive vice president and set to become president on Oct. 1, said liquidity in the M&A market continues to create a competitive environment for acquisitions at reasonable valuations. However, she said the company remains active in diligence on new opportunities and add-on acquisitions.
Highland said the ability to provide both debt and equity remains a competitive advantage. In response to a question from Christopher Nolan of Ladenburg Thalmann, she said the company’s ability to provide all of the capital for a transaction offers sellers greater certainty to close.
Management also discussed specific portfolio valuation changes during the Q&A session. Highland said the increase in fair value for Schylling was tied to improved financial performance and strong demand for its NeeDoh toy product. Ritchie and Dullum also addressed a significant write-up for SEG Holding, citing add-on acquisitions, strategic initiatives, EBITDA growth and third-party market valuation inputs.
Looking ahead, Highland said most existing portfolio companies have posted positive results, though management remains cautious because of the macroeconomic environment and its potential impact on demand and margins. She said the company is working with portfolio companies on supply chain alternatives and cost efficiencies.
Chairman David Gladstone said he believes the company remains attractive for investors seeking monthly distributions and supplemental distributions from capital gains and other income.
About Gladstone Investment NASDAQ: GAINGladstone Investment NASDAQ: GAIN is a publicly traded business development company (BDC) that focuses on providing debt and equity financing to U.S. middle-market companies. As an externally managed closed-end fund, Gladstone Investment seeks to generate current income and capital appreciation for its shareholders by originating senior secured debt, subordinated debt and equity investments. The firm typically targets established businesses with revenues between $10 million and $150 million, across a range of industry sectors including business services, health care, industrials and specialty manufacturing.
The company's investment strategy centers on deploying capital through first-lien and second-lien term loans, mezzanine debt and equity co-investments, often including warrants or other equity kickers.
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Gladstone Investment maintains a buy rating, supported by strong NAV growth, portfolio outperformance, and capital-efficient management. GAIN's concentrated equity-focused portfolio and disciplined underwriting have driven a 20.5% total return over twelve months, outpacing the BDC sector. Despite a recent rally, GAIN trades at a 3.4% discount to NAV, with management actively deploying capital into high-quality investments and restructuring underperforming positions.
Gladstone Investment has delivered a 24% total return and 23.8% fourth quarter NAV growth, outperforming peers despite sector headwinds. GAIN trades near a 3-year high but still trades at a roughly 2% discount to NAV per share. The BDC is paying out a 5.8% base dividend yield, with a potential special dividend likely on the back of equity gains in its investment portfolio.
MCLEAN, VA / ACCESS Newswire / June 2, 2026 / Gladstone Investment Corporation (NASDAQ:GAIN) (the "Company") announced that George "Chip" Stelljes, III has been elected to the 2028 class of directors for the Company, effective June 1, 2026. Mr. Stelljes has also been appointed to serve on the Company's Compensation Committee, Ethics, Nominating & Corporate Governance Committee and Valuation Committee. In connection with Mr. Stelljes' appointment, the size of the Company's board of directors has been expanded from seven to eight directors. Mr. Stelljes was selected to serve as a director due to his more than twenty-five years of experience in the investment analysis, management, and advisory industries.
"We are excited to strengthen our board with the appointment of Chip Stelljes," said David Gladstone, Chairman of the Company's board of directors. "His prior service with the Gladstone companies and his deep experience in private equity fund investment will be a valuable asset to the Company as we continue to grow."
Mr. Stelljes is currently the managing partner of St. John's Capital, LLC, a vehicle used to make private equity investments. From 2001 to 2013, Mr. Stelljes held various senior positions with the Gladstone Companies, including serving as the chief investment officer, president and a director of Gladstone Capital Corporation, Gladstone Investment Corporation, Gladstone Commercial Corporation, and Gladstone Management Corporation. Prior to his service at the Gladstone companies, for 23 years, Mr. Stelljes served in a variety of roles at multiple private equity and venture capital funds, including Patriot Capital, Camden Partners, and Columbia Capital as well as Allied Capital.
Mr. Stelljes is currently the chairman of the board of directors of Equalize Community Development Fund, a closed-end investment company that operates as an interval fund and an independent director of Oxford Square Capital Corporation, a publicly-traded, closed-end management investment company. He is also a former board member and regional president of the National Association of Small Business Investment Companies. Mr. Stelljes holds an MBA from the University of Virginia and a BA in Economics from Vanderbilt University.
About Gladstone Investment Corporation: Gladstone Investment Corporation is a publicly traded business development company that seeks to make secured debt and equity investments in lower middle market businesses in the United States in connection with acquisitions, changes in control and recapitalizations. For more information, please visit www.gladstoneinvestment.com.
About the Gladstone Companies: Information on the business activities of all the Gladstone family of funds can be found at www.gladstonecompanies.com.
CONTACT: For further information: Gladstone Investment Corporation, (703) 287-5893.
