Prospect Capital (PSEC)

(Thomas) #1

Dividend Yield: 10.71%

It’s not the biggest business development company in the world, but somehow Prospect Capital is still one of the best known. [Its portfolio] includes several familiar names like JD Power, Capstone Logistics, ACE Cash Express and video media company Cinedigm, just to name a few.

It’s diversity that has helped smooth out the BDC’s bottom line from time to time when it might otherwise be erratic.

Either way, the market and analysts may be underestimating the true potential of Prospect. The company has [met or topped earnings estimates in each of its past five quarters it reports again May 9 Between that and its trailing dividend yield of 10.71%, PSEC may be a smart risk to take