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Founded in 2001 as one of the first Business Development Company (“BDC”) funds to focus on investing in loans to lower middle market businesses,

Gladstone Capital Corporation is based in McClean VA and has the ticker symbol GLAD.

As a BDC, the corporation is an externally managed, closed-end, non-diversified management investment company.

The fund seeks to invest between $7 million and $30 million in companies that have between $20 million and $150 million in sales and EBITDA between $3 million and $25 million.

It prefers to acquire minority stakes.

It seeks to exit its investments through strategic acquisitions by other industry participants or financial buyers, initial public offerings of common stock, or other capital market transactions.

Three key data points gauge GLAD or any dividend-paying entity, namely:

(1) Price

(2) Dividends

(3) Returns

Those keys also show if any company has made, is making, and will make money.

GLAD Price

Gladstone Capital’s share price increased about 16% in the past year from $23.27 to $27.00 as of Monday’s closing price.

GLAD Dividends

Gladstone Capital has paid regular monthly dividends since October 2003.

The current forward-looking annual dividend of $1.98 yields 7.33% per Tuesday’s $13.80 closing price.

GLAD Returns

Putting it all together, a $4.48 estimated gross gain per share shows up when adding Gladstone Capital's annual $1.98 dividend to an estimated $2.50 annual price gain. 

That 5-year average annual gain plus dividend makes that $4.48 gross gain.

A little under $1000 invested at the recent $27.00 share price would buy 37 shares, which, multiplied by the $4.48 gross gain estimate up to $165.76

Furthermore, over 31% of that $166 gain comes from the $73.30 in annual dividends generated from your $1,000 investment. 

And the $73.30 annual dividend amounts to about 2.7 times the recent $27.00 single-share price.

(A dividend dogcatcher rule is to only buy a stock that pays an annual dividend from $1000 invested that is greater than the cost of a single share.)

Therefore, you may choose to pounce on Gladstone Capital Corporation and its 7.33% dividend yield along with its 22-year dividend record.

The exact track of GLAD's future share prices and dividends 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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