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Gladstone Investment Corp has the ticker symbol GAIN and is a small-cap member of the financial services sector as an asset management firm. This is my first report on Gladstone Investment for this Vista folio or any of the other five for that matter.

Gladstone Investment Corp is a business development company. The company's investment objective is to achieve and grow current income by investing in debt securities of established businesses that will provide stable earnings and cash flow, and provide its stockholders with long-term capital appreciation by investing in equity securities. 

The company's investment sectors include Business service/distribution, Consumer products, and manufacturing. 

Its portfolio consists of the following industries: Conglomerate Services, Home and Office Furnishings, Housewares, Durable Consumer Products, Leisure, Motion Pictures, Entertainment, Conglomerate Manufacturing, Chemicals, Telecommunications, Aerospace and Defense, and others. 

Its investment activities are carried across the United States. The fund typically holds its investments for seven years and exits via sale or recapitalization, initial public offering, or sale to a third party.

Gladstone Investment Corp. is headquartered in McLean, VA

Three key data points gauge dividend equities or funds like Gladstone Investment Corp:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

GAIN Price

Gladstone's price per share closed at $13.90 yesterday. One year ago its price was $10.25.  Thus, the price per share has grown over 35% as it recovered from last year's Covid market slump. 

Should Gladstone Investment Corp stock trade in the range of $8.00 to $16.00 this year, its recent $13.90 price might rise by $0.60 to reach $14.50 by May 6, 2022. My estimate is $1.50 higher than the median of four estimates from analysts tracking GAIN.

GAIN Dividends

Gladstone's most recent monthly dividend of $0.07 is payable May 28th and equates to $0.84 annually yielding 6.04% at yesterday's $13.90 closing price. Gladstone Investment Corp has paid annually increasing monthly dividends for 9 years. 

GAIN Returns

Adding the $0.84 annual Gladstone Investment forward-looking dividend to my $0.60 price upside estimate shows a $1.44 potential gross gain, per share, to be reduced by any costs to trade the shares.  

If we put a little over $1,000.00 today in Gladstone Investment Corp at $13.90 per share, we'd buy 72 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.14 per share.

Subtract that maybe $0.14 brokerage cost from my estimated $1.44 gross gain per share results in a net gain of $1.30 X 72 shares = $93.60 for a 9.35% net gain on a $1,000.80 investment.

Thus, Gladstone Investment Corp shows a possible 9.35% net gain including a 6.04% forward-looking dividend yield. 

Over the next year at this time, a $1000 investment in GAIN could generate $60.40 in cash dividends. And a single share bought at yesterday's closing price was $13.90! So, if GAIN is your kind of asset management investment, GAIN is showing a share price over four times less than the expected annual dividend income from $1,000 invested. This suggests now may be a good time to add Gladstone Investment Corp to your holdings. 

All of the estimates above are speculation based on the past history of Gladstone Investment Corp. Only time and money invested in this stock will determine its worth.