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Gladstone Capital Corp (GLAD) a business development company,  is an externally managed, closed-end, non-diversified management investment company.

Gladstone’s investment objectives are two:

(1) achieve and grow current income by investing in debt securities of established businesses that (a) provide stable earnings and cash flow to pay expenses, (b) make principal and interest payments on all outstanding indebtedness, and (c) make distributions to stockholders that grow over time; 

(2) provide its stockholders with long-term capital appreciation in the value of our assets by investing in equity securities of established businesses that can grow over time and thus permit it to sell its equity investments for capital gains.

Gladstone Capital Corp was founded in 2001 and is based in McLean VA.

Three key data points gauge

Gladstone Capital,or any dividend paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

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

GLAD Price

Cladstone Capital’s share price increased about 30% in the past year from $20.80 to $27.16 as of Monday’s market close.

In the past 5 years the company’s share price has ranged from $8.58 to $20.12; BTW GLAD’s all-time high, of $52.90, was reached back in July, 2005.

Should the company conform to the average of one year price gains achieved over the past five years, price could grow $2.84 to $30.00 in the coming year. Four analysts think the price will drop.

GLAD Dividend

Gladstone Capital has paid variable monthly dividends since October 2003. The company’s most recent M dividend of $0.17 was declared January 14th for shareholders of record prior to March 19th, and the payout is due March 31st. A forward looking annual dividend of $1.98 yields 7.29% per Friday’s $27.16 closing price.

GLAD Returns

Putting it all together, a $6.83 estimated gross gain per share shows up by adding GLAD’s annual $1.98 dividend to the estimated $2.84 estimated annual gross price gain, totaling that $4.82.

A little over $1000 buys 37 shares at Monday’s $27.16 share price.

A $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.27 per share out of the $4.82 gross-gain to give us a $4.55 net amount per share to multiply by 37 shares, to equal $168.36 for about a 16.75% estimated net gain on the year.

Furthermore, $72.90 in annual dividend income from your$1,000 investment in Gladstone Capital is over 2.5 times greater than the single-share price. By these numbers, GLAD may be an ideal dividend dog by dogcatcher standards.

Therefore, you may choose to pounce on Gladstone Capital as a 24 year-old monthly dividend-paying business development company with a 22-year monthly dividend-record.

The exact track of GLAD future price and dividend will entirely be determined by market action and company finances.

Remember the best way to track stock performance and dividend payments is through direct ownership of company shares.

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