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.
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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.
