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The “million dollars to retire” figure survives because it is simple, not because it is precise. It assumes one spending target, one withdrawal rate, and one risk tolerance for every household. A better retirement question is narrower: how much annual income must your portfolio produce after Social Security, and how much yield risk are you willing to take to get it?
Once you frame it that way, the million-dollar threshold becomes less useful. The average U.S. consumer unit spent $78,535 in 2024, according to the Bureau of Labor Statistics. Social Security can replace a meaningful slice of that for many retirees. If your portfolio needs to cover roughly $50,000 a year, the capital required ranges from about $1.43 million down to roughly $417,000, depending entirely on the yield you target.
The Only Equation That Matters Income target divided by yield equals capital required. For a $50,000 annual income:
At 3.5%: $50,000 / 0.035 = $1,428,571 At 5%: $50,000 / 0.05 = $1,000,000 At 7%: $50,000 / 0.07 = $714,286 At 10%: $50,000 / 0.10 = $500,000 At 12%: $50,000 / 0.12 = $416,667 For context, the 10-year Treasury recently yielded about 4.4% to 4.5%, which is a useful baseline every dividend strategy below has to justify. It is not risk-free in the sense that market prices can move, but it is the closest widely used benchmark for default-free long-term dollar income.
Tier One: Sleep-At-Night Dividend Growth (3% to 4%) This tier is built on dividend growth equities and broad dividend ETFs. PepsiCo (NASDAQ:PEP | PEP Price Prediction) yields 4.1% and just paid its $1.48 quarterly dividend on June 30. NextEra Energy (NYSE:NEE) yields a lower 2.7% but the dividend has climbed from $0.425 quarterly in 2022 to $0.6232 today, and the stock returned 29% over the past year.
Trade-off: highest capital requirement, but income and principal both grow.
Tier Two: The Monthly Paycheck (5% to 7%) Net-lease REITs, preferred shares, and high-dividend equity funds live here. Realty Income (NYSE:O) yields 5.2%, pays monthly, and is on its 114th consecutive quarterly increase. The most recent monthly dividend ticked up to $0.271 from $0.2705. At a 5% blended yield, $1 million covers the $50,000 target on the nose.
Trade-off: income growth slows to low single digits, and the share price moves more with interest rates than with earnings.
Tier Three: Maximum Yield, Maximum Caution (8% to 14%) Business development companies, mortgage REITs, and leveraged covered-call funds can push portfolio yields into double digits. Ares Capital (NASDAQ:ARCC) yields 10.7% and has held its $0.48 quarterly distribution stable for six consecutive quarters. At that rate, roughly $470,000 produces $50,000 a year.
But yield this high carries real risk. Prospect Capital (NASDAQ:PSEC) cut its monthly distribution from $0.045 to $0.035 in May 2026, a 22% reduction. NAV per share fell to $6.05 from $7.84 a year earlier, and shares are down 11% over the past year and 47% over five years.
Where Conventional Wisdom Breaks Down The standard counterargument to high-yield portfolios is “dividend cuts.” The deeper problem is compounding. PepsiCo’s quarterly dividend has grown from $0.135 in 1999 to $1.48 in 2026. A retiree who bought PEP shares for income years ago is now collecting far more income on the same share count, even before considering any change in the stock price.
A PSEC retiree from the same period may have collected high distributions along the way, but the per-share distribution is lower today than it was several years ago, and the stock price has suffered. The headline yield looked higher. The outcome depended heavily on whether distributions were enough to offset the loss of principal.
With CPI-U at 335.123 in May 2026 and up 4.2% over the prior 12 months, an income stream that does not grow is an income stream that quietly loses purchasing power.
A Better Way to Size Retirement Income Calculate the gap, not the goal. Subtract expected Social Security from your actual annual spending. That residual is the number your portfolio has to cover. Stress-test the yield. For any holding above 8%, model what happens if the distribution is cut 25% and the share price falls 20%. If that scenario breaks your income plan or forces sales at depressed prices, the position is too large.
Blend the tiers. A barbell of a 3.5% dividend grower and a 9% BDC produces a 6.25% blended yield if the two sides are equally weighted, with built-in growth potential on half the portfolio. That structure can beat a pure 6% holding over a 20-year retirement, but only if the high-yield side avoids severe dividend cuts and principal erosion. The Number Is Less Important Than the Engine A million dollars can be too little, more than enough, or exactly on target depending on the income gap it has to fill. Yield changes the required capital, but risk changes whether that income lasts. The strongest retirement portfolios do not simply reach for the biggest payout. They match the paycheck to the household’s spending need, then make sure that paycheck can survive inflation, dividend cuts, and a long retirement.
Contact [email protected] for any questions or corrections.
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Replacing $1,500 a month in portfolio income looks simple until yield enters the equation. At a 3.5% yield, you need roughly $514,000 invested. At 6%, the target falls to $300,000. At 10%, it drops to $180,000. Those numbers seem to reward the highest-yielding portfolio, but the real question is what you may have to give up to get that yield.
The $18,000 annual target sits at a useful spot on the income ladder. It can cover property taxes, insurance, utilities, groceries, or a meaningful supplement to Social Security. The capital required to produce it changes everything about how the portfolio gets built.
The Conservative Path: About $514,000 in Dividend Growth Blue Chips A 3% to 4% blended yield is a reasonable target for a diversified dividend-growth portfolio. Johnson & Johnson (NYSE: JNJ) recently raised its quarterly dividend to $1.34, marking its 64th consecutive year of increases. Procter & Gamble (NYSE: PG) lifted its quarterly dividend to $1.0885 in 2026 and has paid a dividend for 136 consecutive years since its incorporation in 1890, with 70 consecutive years of increases.
Blend those stocks with utilities, midstream energy, and a few higher-yielding dividend aristocrats, and a 3.5% portfolio yield is reachable. The math: $18,000 divided by 0.035 equals about $514,000. That is the most expensive seat in the room, but it may buy a more durable income stream and a better chance of long-term principal appreciation.
The Moderate Path: $300,000 in Net Lease REITs Pushing yield into the 5% to 7% range means leaning into REITs, preferred shares, and covered call strategies. Realty Income (NYSE: O) pays monthly and raised its dividend again in June 2026, bringing its annualized dividend to $3.252 per share and marking its 135th increase since listing on the NYSE in 1994. NNN REIT (NYSE: NNN) pays $0.60 quarterly and has increased its annual dividend for 36 or more consecutive years.
At a 6% blended yield, $18,000 divided by 0.06 equals $300,000. That cuts the capital requirement by more than $200,000 compared with the 3.5% portfolio. The trade-off is real. REIT dividend growth often runs in the low single digits. Realty Income’s monthly dividends paid per share rose 1.8% year over year in the first quarter of 2026, which may lag inflation in some years.
The Aggressive Path: $180,000 in BDCs, With a Catch Business development companies and mortgage REITs can push portfolio yield to 10% or higher, but the details matter. Main Street Capital (NYSE: MAIN) declared regular monthly dividends of $0.265 for July, August, and September 2026, plus a $0.30 supplemental dividend payable in June. Including those declarations, Main Street said the total represented an annualized current yield of 7.9% based on its May 4, 2026 closing price.
Prospect Capital (NASDAQ: PSEC) shows why the higher-yield tier needs extra scrutiny. Its NAV per common share fell from $7.25 on March 31, 2025, to $6.05 on March 31, 2026, and its monthly distribution fell from $0.045 earlier in 2026 to $0.035 for May through August. That is a 22.2% reduction in the monthly payout before considering any share-price decline.
Why the Cheapest Seat Often Costs the Most Headline yield hides the part that matters most. A 3.5% yield growing 6% per year roughly doubles in 12 years. An $18,000 income stream growing at that pace would reach about $36,000 after 12 annual increases without adding another dollar. A 10% yield with no growth stays flat, and a shrinking payout can leave the investor with both less income and less principal.
With the 10-year Treasury around 4.4% and the FDIC’s national 12-month CD rate at 1.55% in its May 2026 update, the conservative dividend tier is competing with both safe income today and its own future growth potential.
How to Stress-Test the Income Tier Price your actual spending, not your salary. If the real monthly need is $1,200, you may be solving for a $360,000 income problem at 4%, not a $514,000 problem at 3.5%. The income target should reflect cash going out the door.
Compare total returns, not headline yields. A high payout does not help much if the share price and NAV are falling at the same time. MAIN’s record is stronger than many BDC peers, but PSEC’s recent NAV decline and dividend reduction show why yield alone tells you almost nothing about which path built wealth.
Blend the tiers on purpose. A portfolio with 60% in dividend growth stocks at a 3.5% yield and 40% in moderate-yield holdings at a 6% yield would produce a blended yield of 4.5%. That would hit $18,000 of annual income on about $400,000, while taking less concentrated risk than an all-BDC portfolio.
The Better Portfolio Is the One That Survives the Math The lesson is not that low yield is always good or high yield is always bad. It is that yield is only one part of the income equation. A $180,000 portfolio can produce $1,500 a month at 10%, but that income is only useful if the payout and principal can hold up. For many retirees, the better answer is a portfolio that pays enough today and still has room to grow tomorrow.
Contact [email protected] for any questions or corrections.
July 06, 2026 07:01 ET | Source: Prospect Capital Corporation
NEW YORK, July 06, 2026 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”) and an affiliate have provided a first lien senior secured term loan and an equity-linked investment in ShipOffers (“ShipOffers” or the “Company”), in collaboration with the company’s founders and leadership team.
Founded in 2001 with a 25-year history, ShipOffers is a leading provider of on-demand product and order fulfillment services, offering sourcing, order processing, warehousing, pick-pack-and-ship, real-time tracking, and platform integrations for e-commerce and direct-to-consumer brands. ShipOffers operates fulfillment facilities in Colorado and Tennessee, as well as a facility in the Netherlands, enabling clients to scale distribution across the United States and Europe. The Company serves customers across the health and beauty, nutraceutical, and consumer products industries, and is led by co-founders Tony Grebmeier, Chief Executive Officer, and Doug Roberts, Chief Financial Officer.
“Prospect is pleased to provide strategic growth capital that supports continued evolution by the ShipOffers team in people, technology, and facilities,” said Angel Solis, Managing Director at Prospect. “ShipOffers has built a differentiated fulfillment platform over more than two decades, and we look forward to supporting the Company’s next phase of growth.”
The ShipOffers team was impressed with how quickly and thoughtfully Prospect worked to understand our business,” said Tony Grebmeier, Co-Founder and CEO of ShipOffers. “This investment allows our team to keep driving growth in the business we launched 25 years ago in 2001, while providing us the capital to expand our footprint and continue delivering for our clients.”
About Prospect Capital Corporation
Prospect is a business development company that primarily lends to and invests in middle market privately-held companies. Prospect’s investment objective is to generate both current income and long-term capital appreciation.
Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. Prospect has elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.
About ShipOffers
Founded in 2001, ShipOffers is a globally recognized logistics and fulfillment company serving businesses across a range of industries. With facilities in Colorado, Tennessee, and the Netherlands, ShipOffers provides sourcing, order fulfillment, shipping, and strategic guidance, backed by a team of more than 150 professionals worldwide. For more information, visit www.shipoffers.com.
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.
For additional information, contact:
Grier Eliasek, President and Chief Operating Officer [email protected]
Telephone (212) 448-0702
June 26, 2026 16:00 ET | Source: Priority Income Fund, Inc.
NEW YORK, June 26, 2026 (GLOBE NEWSWIRE) -- Priority Income Fund, Inc. (“Priority Income Fund” or the “Fund”) announced today that the Fund’s Board of Directors has declared monthly cash common shareholder distributions for June 2026, July 2026, and August 2026.
The annualized total cash distribution is $0.40000 per share (10.8% annualized rate based on the May 31, 2026 net asset value), for distributions with record dates between June 26, 2026 and August 5, 2026 based on the May 31, 2026 net asset value of $3.70 per common share.
The cash distributions will have monthly record dates and will be payable monthly to common stockholders of record at the close of business each month. These declared distributions equal a monthly cash amount of $0.03333 per share of common stock (or $0.10000 on a quarterly basis) as follows:
Monthly Cash
Shareholder
DistributionRecord DatePayment DateTotal Amount
($ per share)June 2026June 26, 2026June 30, 2026$0.03333July 2026July 6, 2026July 31, 2026$0.03333August 2026August 5, 2026August 31, 2026$0.03333 These distributions represent the 150th, 151st and 152nd consecutive monthly distributions paid by the Fund. The Fund has paid or declared cumulative cash distributions totaling $17.263214 per common share since inception in January 2014 through August 2026.
Distributions shall first be treated as a distribution of taxable investment company income undistributed from the prior year, and then treated as a distribution of taxable investment company income for the current year. This treatment will not affect tax reporting to shareholders.
About Priority Income Fund
Priority Income Fund, Inc. is a registered closed-end fund that was created to acquire and grow an investment portfolio primarily consisting of senior secured loans or pools of senior secured loans known as collateralized loan obligations ("CLOs"). Such loans will generally have a floating interest rate and include a first lien on the assets of the respective borrowers, which typically are private and public companies based in the United States. The Fund is managed by Priority Senior Secured Income Management, LLC, which is led by a team of investment professionals from the investment and operations team of Prospect Capital Management L.P. For more information, visit https://www.priorityincomefund.com.
About Prospect Capital Management L.P.
Prospect Capital Management L.P. (“Prospect”), headquartered in New York City, is an SEC-registered investment adviser that, along with its predecessors and affiliates, has more than 30-years of investing in and managing high-yielding debt and equity investments using both private partnerships and publicly traded closed-end structures. Prospect and its affiliates employ a team of over 100 professionals who focus on credit-oriented investments yielding attractive current income. Prospect, together with its affiliates, has $6.9 billion of regulatory assets under management as of March 31, 2026. Prospect is the investment adviser to Prospect Capital Corporation (NASDAQ: PSEC). For more information, call (212) 448-0702 or visit https://www.prospectcap.com.
Additional Information
Past performance is not indicative of future performance. Our distributions may exceed our earnings, and therefore, portions of the distributions that we make may be a return of the money that you originally invested and represent a return of capital to you for tax purposes. Such a return of capital is not immediately taxable, but reduces your tax basis in our shares, which may result in higher taxes for you even if your shares are sold at a price below your original investment.
Forward-Looking Statements
This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the future performance of Priority Income Fund, Inc. Words such as "believes," "expects," "projects," and "future" or similar expressions are intended to identify forward-looking statements. Any such statements, other than statements of historical fact, are highly likely to be affected by unknowable future events and conditions, including elements of the future that are or are not under the control of Priority Income Fund, Inc. and that Priority Income Fund, Inc. may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and Priority Income Fund, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
NEW YORK, June 24, 2026 (GLOBE NEWSWIRE) -- Prospect Floating Rate and Alternative Income Fund, Inc. (“Prospect Floating Rate and Alternative Income Fund” or the “Fund”), announced today that the Fund’s Board of Directors has declared the monthly “base” cash common shareholder distribution and its quarterly cash “bonus” common shareholder distribution for June 2026.
The annualized total “base” cash distribution is $0.3810 per share (10.00% annualized percentage rate based on the net asset value as of March 31, 2026), for distribution with a record date of June 26, 2026 and a payment date of July 2, 2026.
Monthly Base Cash
Shareholder
DistributionRecord DatePayment DateTotal Amount
($ per share)June 2026June 26, 2026July 2, 2026$0.02924
The Fund’s Board of Directors has also declared a quarterly cash “bonus” distribution, as follows:
Quarterly Bonus
Cash Shareholder
DistributionRecord DatePayment DateTotal Amount
($ per share)June 2026June 26, 2026July 2, 2026$0.04723
The total annualized cash distribution is $0.56992 (14.96% annualized percentage rate based on the net asset value as of March 31, 2026 of $3.81), for a distribution with a record date of June 26, 2026.
Distributions shall first be treated as a distribution of taxable investment company income undistributed from the prior year and then treated as a distribution of taxable investment company income for the current year. This treatment will not affect tax reporting to shareholders.
About Prospect Floating Rate and Alternative Income Fund
Prospect Floating Rate and Alternative Income Fund is an externally managed, non-diversified, closed-end management investment company that has elected to be regulated as a business development company. The Fund invests primarily in the floating rate loans of privately-owned U.S. middle market companies. These investments are generally sourced by Prospect Capital Management L.P, our investment adviser. For more information, visit pfloat.com.
About Prospect Capital Management L.P.
Prospect Capital Management L.P. (“Prospect”), headquartered in New York City, is an SEC-registered investment adviser that, along with its predecessors and affiliates, has more than 30-years of investing in and managing high-yielding debt and equity investments using both private partnerships and publicly traded closed-end structures. Prospect and its affiliates employ a team of over 100 professionals who focus on credit-oriented investments yielding attractive current income. Prospect, together with its affiliates, has $6.9 billion of assets under management as of March 31, 2026. Prospect is the investment adviser to Prospect Capital Corporation (NASDAQ: PSEC). For more information, call (212) 448-0702 or visit https://www.prospectcap.com.
Additional Information
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Past performance is not indicative of future performance. Our distributions may exceed our earnings, and therefore, portions of the distributions that we make may be a return of the money that you originally invested and represent a return of capital to you for tax purposes. The Fund will ordinarily pay distributions from its net investment income, if any, on a monthly basis. Distributions are not guaranteed. Based on current estimates, June 2026 distributions reflect a return of income, and the Fund does not expect any portion of the distributions to be a return of capital. Such a return of capital is not immediately taxable, but reduces your tax basis in our shares, which may result in higher taxes for you even if your shares are sold at a price below your original investment.
Forward-Looking Statements
This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the future performance of Prospect Floating Rate and Alternative Income Fund Words such as "believes," "expects," "projects," and "future" or similar expressions are intended to identify forward-looking statements. Any such statements, other than statements of historical fact, are highly likely to be affected by unknowable future events and conditions, including elements of the future that are or are not under the control of Priority Income Fund, Inc. and that Prospect Floating Rate and Alternative Income Fund may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and Prospect Floating Rate and Alternative Income Fund undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
NEW YORK, June 23, 2026 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, the "Company", “our”, or “we”) today announced that it held its special meeting of stockholders (the “Special Meeting”) on June 23, 2026. The proposal that was considered at the Special Meeting is described in detail in the Company's definitive proxy statement for the Special Meeting as filed with the Securities and Exchange Commission on March 11, 2026 (the “Proxy”). As of March 11, 2026, there were 486,484,945 shares of the Company's common stock outstanding, 25,394,532 shares of the Company's 5.50% Series A1 Preferred Stock outstanding (the “Series A1 Preferred Stock”), 163,000 shares of the Company's 5.50% Series A2 Preferred Stock outstanding (the “Series A2 Preferred Stock”), 5,251,157 shares of the Company's 5.35% Series A Fixed Rate Cumulative Perpetual Preferred Stock outstanding (the “5.35% Series A Preferred Stock”), 908,259 shares of the Company's 5.50% Series M1 Preferred Stock outstanding (the “Series M1 Preferred Stock”), 23,376,070 shares of the Company's 6.50% Series A3 Preferred Stock outstanding (the “Series A3 Preferred Stock”), 1,794,312 shares of the Company's 6.50% Series M3 Preferred Stock outstanding (the “Series M3 Preferred Stock”), 6,920,261 shares of the Company's Floating Rate Series A4 Preferred Stock outstanding (the “Series A4 Preferred Stock”), 1,995,546 shares of the Company's Floating Rate Series M4 Preferred Stock outstanding (the “Series M4 Preferred Stock”), 3,341,380 shares of the Company's 7.50% Series A5 Preferred Stock outstanding (the “Series A5 Preferred Stock”) and 878,753 shares of the Company's 7.50% Series M5 Preferred Stock outstanding (the “Series M5 Preferred Stock”). Each share of common or preferred stock has one vote. To afford additional time to solicit stockholder votes for the proposal found in the Proxy, the Special Meeting has been adjourned until July 7, 2026, at 5:00 p.m., Eastern Time, at www.virtualshareholdermeeting.com/PSEC2026SM .
Prospect Capital Corporation offers perpetual, cumulative preferred shares with a 5.35% coupon and 7.9% current yield. PSEC common equity trades at a >50% discount to NAV, reflecting market skepticism about balance sheet quality and portfolio marks. PSEC.PR.A's yield is lower than PSEC's long-dated bonds, despite greater risk in bankruptcy, making the preferred equity unattractive on a risk/reward basis.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Prospect Capital Corporation continues to underperform, with NAV declining and a persistent negative investment activity trend. PSEC trades at a deep 61.82% discount to NAV and offers an 18.2% yield, but downside risks outweigh income potential. Net investment income and total investment income both declined year-over-year, while dividend payouts have been reduced again.
Prospect Capital Corporation (NASDAQ:PSEC) pays a 21.7% annualized yield by sending shareholders $0.045 per share every month. That number attracts income investors the way a bright light attracts moths, but the history of this yield tells a more cautious story.
business development company lending middle market finance What PSEC Is and How It Pays You Prospect Capital is a business development company, not an ETF. BDCs lend money to mid-sized private businesses, collect interest, and distribute most of that income to shareholders. The dividend comes from net investment income: the spread between what PSEC earns on its loans and what it costs to borrow. Think of it as a leveraged lending operation that passes profits directly to you.
The current portfolio holds 91 portfolio companies with 71.4% of the book in first lien senior secured loans, the highest-priority debt in a borrower’s capital structure. That rotation toward safer collateral is deliberate. Non-accrual loans sit at just 0.7% of total assets, which is low for a BDC of this size.
The Coverage Ratio Masks a Deteriorating Trend For BDCs, net investment income per share is the right coverage metric. On that measure, the current distribution is covered. Q2 FY2026 NII came in at $0.19 per share, comfortably above the $0.135 per share in quarterly distributions. Real income covering a real payout, with margin to spare.
The problem sits beneath that line. Over the past four quarters, Prospect has recorded cumulative realized and unrealized losses of roughly $675 million. These are permanent write-downs on loans that went wrong, eroding the asset base that generates future income. A shrinking pool of earning assets means less NII down the road, even if today’s coverage ratio looks adequate.
NAV per share tells the story most clearly:
NAV has declined from $7.84 a year ago to $6.21 today. Every quarter in that span has been lower than the one before. A BDC paying out more than it earns in realized terms is gradually liquidating itself, and distributions may eventually reflect that reality.
This Yield Has Been Cut Before The 21% yield is the current yield at a depressed stock price, and the payout has already been reduced twice in roughly a decade. In 2017, the monthly distribution was cut from $0.083 to $0.06, a 28% reduction. Then in late 2024, the distribution was cut again from $0.06 to $0.045, a 25% reduction. Shareholders who held through both cuts watched their income stream shrink by nearly half from its peak.
The current 3.75% Fed funds rate adds pressure. Falling base rates compress the yield PSEC earns on its floating-rate loans. The annualized portfolio yield has already dropped from 9.7% to 9.1% year-over-year, and PIK interest income fell from $33.1 million to $15.4 million in the same period. That is a meaningful compression in earning power.
One Reason for Cautious Optimism COO M. Grier Eliasek purchased 942,800 shares at almost $2.92 in February 2026, an open-market buy totaling roughly $2.75 million. Insiders do not typically spend that kind of money on a stock they expect to collapse. Insiders own 27.5% of the company, so management’s interests are genuinely aligned with shareholders. The $300 million debt maturity in November 2026 is the next real test: if Prospect refinances cleanly in a lower-rate environment, near-term distribution risk recedes.
The Verdict The distribution is technically covered by NII today, but the structural backdrop is deteriorating. Shares have fallen 26% over the past year, meaning investors collecting a 21% yield have still lost ground on a total return basis. NAV erosion, two dividend cuts in eight years, and a shrinking portfolio all point in the same direction. This yield is probably unsustainable at its current level over a multi-year horizon, particularly if base rates continue falling and realized losses persist. Income investors who need capital stability should approach with serious caution. The current discount to NAV of $6.21 is notable context, but only meaningful alongside a clear view of what the history here actually shows.
GraniteShares Advisors LLC bought a new stake in Prospect Capital Corporation (NASDAQ: PSEC) during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 1,059,980 shares of the financial services provider's stock, valued at approximately $2,745,000. Prospect Capital makes up
GraniteShares Advisors LLC purchased a new stake in Prospect Capital Corporation (NASDAQ: PSEC) during the undefined quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 1,059,980 shares of the financial services provider's stock, valued at approximately $2,745,000. Prospect Capital comprises approximately 1.7% of
New modular seating, dining and coordinated sets bring elevated coastal style to outdoor entertaining CANTON, Ga., April 22, 2026 /PRNewswire/ -- Ubique Group, a leading provider of commercial and residential furniture, today announced the expansion of the Martha Stewart Lily Pond Patio Collection, introducing a wicker series of patio furniture thoughtfully crafted to embody Martha's effortless outdoor style.
NEW YORK, April 27, 2026 (GLOBE NEWSWIRE) -- Prospect Enhanced Yield Fund (“PENF” or the “Fund”) announced today that the Fund's Board of Directors has declared monthly cash shareholder distributions for April 2026, May 2026, and June 2026. These distributions represent the seventh, eighth, and nineth monthly distributions paid by the Fund.
NEW YORK, May 04, 2026 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") and an affiliate have provided a first lien senior secured term loan and a preferred equity investment in Security Fire Systems ("SFS"), aggregating approximately $26 million, in collaboration with Blackford Capital.
Prospect Capital (NASDAQ:PSEC) pays a monthly distribution of $0.045 per share, which works out to $0.54 annualized and a yield of roughly 20.1% at a recent share price of almost $3. A yield that fat usually flashes a warning, and the company did cut its monthly payout from $0.06 to $0.045 in late 2024. The question for income investors is whether the new, lower distribution is finally on solid footing.
How Prospect Capital Actually Earns Its Yield PSEC is an externally managed Business Development Company that functions as a high-yield income vehicle for retail investors. Income flows from interest on direct loans to middle-market businesses, with smaller contributions from payment-in-kind interest, controlled-affiliate dividends, and real estate held through National Property REIT Corp.
Management has spent the last two years rotating into the safest part of the capital stack. First lien senior secured middle market loans now make up 71% of the portfolio at cost, up 728 basis points since June 2024, while subordinated structured notes have been wound down toward 0.3%. The target borrower is a company with less than $50 million in EBITDA, and software exposure sits at 3% versus a 22% BDC industry average, sidestepping the most crowded corner of private credit.
Does Net Investment Income Cover the Check? The cleanest read on dividend safety for a BDC is net investment income (NII) per share against the distribution. In fiscal Q2 2026, PSEC reported NII of $90.89 million, or $0.19 per share, against a quarterly distribution of $0.135. That is roughly 1.4x coverage.
Q1 2026 NII of $0.17 per share covered the same payout about 1.26x and beat the $0.11 consensus. Interest coverage at the BDC level reached 426%, up from 339% the prior quarter.
Credit quality has firmed alongside the rotation. Non-accrual loans came in at 0.7% of total assets, down from a 4% peak in fiscal Q4 2025. Total liabilities fell 49% year over year, and the next institutional bond maturity is $300 million in November 2026, giving management runway to keep grinding through the portfolio without refinancing pressure.
What Should Still Worry Owners The distribution is funded, but the equity has been bleeding. Net asset value per share dropped to $6.21 from $7.84 a year earlier, and the portfolio company count fell to 91 from 114. Realized investment losses of $141.3 million in Q2 2026 and $308.5 million in Q4 2025 drove the NAV erosion. Annualized current yield on investments has slipped from 9.7% to 9.1% as lower base rates and the rotation into safer first lien paper compress income.
Total return reflects all of that. PSEC has returned negative 8% over the past year and negative 37% over five years on a price basis, even with the fat coupon. One contrarian signal worth weighing: COO M. Grier Eliasek bought 942,800 shares at around $3 on February 11, 2026, roughly $2.75 million of open-market insider buying.
Verdict on the Distribution The current $0.045 monthly distribution looks safe through at least the next several quarters. NII covers it with cushion, non-accruals are normalized, leverage is down, and there are no near-term debt walls. The yield premium over the 4.42% 10-year Treasury is real compensation for credit risk. PSEC fits investors who want monthly cash and accept that the principal will keep grinding lower while management finishes repositioning. Anyone counting on capital appreciation alongside the coupon should look elsewhere.
May 06, 2026 09:00 ET | Source: Prospect Capital Corporation
NEW YORK, May 06, 2026 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (the “Company” or “Prospect”) today announced it expects to file with the Securities and Exchange Commission its report on Form 10-Q containing results for the fiscal quarter ended March 31, 2026 and to issue its earnings press release on Thursday, May 7, 2026, after the close of the markets.
The Company will host a conference call on Friday, May 8, 2026 at 9:00 a.m. Eastern Time. The conference call dial-in number will be 888-338-7333. A recording of the conference call will be available for approximately 30 days. To hear a replay, call 855-669-9658 and use passcode 1182378.
The conference call will also be available via a live listen-only webcast on the Company’s website, www.prospectstreet.com. Please allow extra time prior to the call to visit the site and download any necessary software that may be needed to listen to the Internet broadcast.
About Prospect Capital Corporation
Prospect is a business development company that primarily lends to and invests in middle market privately-held companies. Prospect’s investment objective is to generate both current income and long-term capital appreciation.
Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. Prospect has elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.
For additional information, contact:
Grier Eliasek, President and Chief Operating Officer [email protected]
Telephone (212) 448-0702
NEW YORK, May 07, 2026 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”) today announced financial results for our fiscal quarter ended March 31, 2026.
Lennar (NYSE:LEN) Updates Q3 2026 Earnings GuidanceLennar (NYSE:LEN) updated its third quarter 2026 earnings guidance. The company provided EPS guidance of 1.200-1.400 for the period, compared to the consensus estimate of 1.710.
MSA Safety Incorporporated (NYSE:MSA) CFO Acquires $71,093.12 in StockMarketBeat
MSA Safety Incorporporated (NYSE:MSA - Get Free Report) CFO Julie Beck bought 448 shares of the stock in a transaction dated Thursday, June 11th. The stock was acquired at an average price of $158.69 per share, with a total value of $71,093.12. Following the completion of the purchase, the chief financial officer owned 3,825 shares of the company's stock, valued at $606,989.25. This represents a 13.27% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link.
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Prospect Capital Corporation is reiterated as a sell due to ongoing financial deterioration despite a 59% discount to NAV and double-digit yield. PSEC's Q3 saw net investment income and total investment income decline, with NAV dropping sequentially and year-over-year, underperforming peers. Management's portfolio shift to first-lien loans and reduced real estate exposure are positive but not expected to offset near-term financial weakness.
Prospect Capital maintains a 'Strong Buy' rating as its investment thesis, although controversial, remains intact after Q3'26 earnings. PSEC's portfolio quality remained stable at 0.7%, outperforming peers, with first liens rising to 72%. The dividend was reset to $0.035 per-share monthly due to pressure from preferred stock offerings.
NEW YORK, June 09, 2026 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, "Company", “our”, or “we”) today announced that it held its special meeting of stockholders (the “Special Meeting”) on June 9, 2026. The proposals that were considered at the Special Meeting are described in detail in the Company's definitive proxy statement for the Special Meeting as filed with the Securities and Exchange Commission on March 11, 2026 (the “Proxy”). As of March 11, 2026, there were 486,484,945 shares of the Company's common stock outstanding, 25,394,532 shares of the Company's 5.50% Series A1 Preferred Stock outstanding (the “Series A1 Preferred Stock”), 163,000 shares of the Company's 5.50% Series A2 Preferred Stock outstanding (the “Series A2 Preferred Stock”), 5,251,157 shares of the Company's 5.35% Series A Fixed Rate Cumulative Perpetual Preferred Stock outstanding (the “5.35% Series A Preferred Stock”), 908,259 shares of the Company's 5.50% Series M1 Preferred Stock outstanding (the “Series M1 Preferred Stock”), 23,376,070 shares of the Company's 6.50% Series A3 Preferred Stock outstanding (the “Series A3 Preferred Stock”), 1,794,312 shares of the Company's 6.50% Series M3 Preferred Stock outstanding (the “Series M3 Preferred Stock”), 6,920,261 shares of the Company's Floating Rate Series A4 Preferred Stock outstanding (the “Series A4 Preferred Stock”), 1,995,546 shares of the Company's Floating Rate Series M4 Preferred Stock outstanding (the “Series M4 Preferred Stock”), 3,341,380 shares of the Company's 7.50% Series A5 Preferred Stock outstanding (the “Series A5 Preferred Stock”) and 878,753 shares of the Company's 7.50% Series M5 Preferred Stock outstanding (the “Series M5 Preferred Stock”). Each share of common or preferred stock has one vote. To afford additional time to solicit stockholder votes for the proposal found in the Proxy, the Special Meeting has been adjourned until June 23, 2025, at 5:00 p.m., Eastern Time, at www.virtualshareholdermeeting.com/PSEC2026SM.
June 09, 2026 16:48 ET | Source: Priority Income Fund, Inc.
NEW YORK, June 09, 2026 (GLOBE NEWSWIRE) -- Priority Income Fund, Inc. (“Priority Income Fund” or the “Fund”) announced today that the Fund’s Board of Directors has declared distributions on shares of the Fund’s 7.00% Series D Term Preferred Stock due 2029 (“Series D”), 7.000% Series K Cumulative Preferred Stock (“Series K”), and 6.375% Series L Term Preferred Stock due 2029 (“Series L”).
Ex-Dividend DateRecord DatePayable DateDistribution per ShareSeries DJune 23, 2026June 23, 2026June 30, 2026$0.43750Series KJune 23, 2026June 23, 2026June 30, 2026$0.43750Series LJune 23, 2026June 23, 2026June 30, 2026$0.39844
Distributions shall first be treated as a distribution of taxable investment company income undistributed from the prior year, and then treated as a distribution of taxable investment company income for the current year. This treatment will not affect tax reporting to shareholders.
About Priority Income Fund
Priority Income Fund, Inc. is a registered closed-end fund that was created to acquire and grow an investment portfolio primarily consisting of senior secured loans or pools of senior secured loans known as collateralized loan obligations ("CLOs"). Such loans will generally have a floating interest rate and include a first lien on the assets of the respective borrowers, which typically are private and public companies based in the United States. The Fund is managed by Priority Senior Secured Income Management, LLC, which is led by a team of investment professionals from the investment and operations team of Prospect Capital Management L.P. For more information, visit https://www.priorityincomefund.com.
About Prospect Capital Management L.P.
Prospect Capital Management L.P. (“Prospect”), headquartered in New York City, is an SEC-registered investment adviser that, along with its predecessors and affiliates, has more than 30-years of investing in and managing high-yielding debt and equity investments using both private partnerships and publicly traded closed-end structures. Prospect and its affiliates employ a team of over 100 professionals who focus on credit-oriented investments yielding attractive current income. Prospect, together with its affiliates, has $6.9 billion of assets under management as of March 31, 2026. Prospect is the investment adviser to Prospect Capital Corporation (NASDAQ: PSEC). For more information, call (212) 448-0702 or visit https://www.prospectcap.com.
About Preferred Capital Securities, LLC
Preferred Capital Securities, LLC (“PCS”) serves as the dealer-manager for Priority Income Fund, Inc. and has been a member of FINRA/SIPC since 2015. Formed in 2013, PCS is a boutique managing broker-dealer that distributes alternative investments, including real estate and credit investment products in private and public structures through broker dealers and registered investment advisors. PCS has raised over $4.9 billion of capital as a wholesale distributor for various alternative investment strategies. For more information, call
855-320-1414 or visit http://www.pcsalts.com.
Additional Information
Past performance is not indicative of future performance. Our distributions may exceed our earnings, and therefore, portions of the distributions that we make may be a return of the money that you originally invested and represent a return of capital to you for tax purposes. Such a return of capital is not immediately taxable, but reduces your tax basis in our shares, which may result in higher taxes for you even if your shares are sold at a price below your original investment.
Investors should consider the investment objective and policies, risk considerations, charges and ongoing expenses of an investment carefully before investing. The prospectus and summary prospectus contains this and other information relevant to an investment in the fund. Please read the prospectus or summary prospectus carefully before you invest or send money. To obtain a prospectus, please contact your investment representative or Investor Services at 866.655.3650.
Forward-Looking Statements
This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the future performance of Priority Income Fund, Inc. Words such as "believes," "expects," "projects," and "future" or similar expressions are intended to identify forward-looking statements. Any such statements, other than statements of historical fact, are highly likely to be affected by unknowable future events and conditions, including elements of the future that are or are not under the control of Priority Income Fund, Inc. and that Priority Income Fund, Inc. may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and Priority Income Fund, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
