Gladstone Capital's 10% yield is sustained by loan book growth
SS
Sam St. James
Fed interest rate decision · Apr 14, 2026
Source: DojiDoji Data Terminal
A monthly common distribution of $0.15 per share is currently covered by net investment income of $0.50 per share in the first quarter of 2026, a coverage ratio of 1.1 times. This distribution was reduced from $0.165 per share starting in the fourth quarter of 2025, a move driven by yield compression from Federal Reserve rate cuts in late 2025.
Gladstone Capital's portfolio is predominantly floating-rate, causing the weighted average yield on its interest-bearing portfolio to compress from 13.9% in Q4 2024 to 12.2% in Q1 2026. To stabilize per-share income, the company increased its weighted average principal balance from $647.2 million in Q3 2025 to $772.3 million in Q1 2026.
Net investment income per share held at $0.50 in Q1 2026, covering the $0.45 quarterly common distribution.
Fed interest rate decision
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