Prospect Capital: PIK Drop A Problem, But Dividend Should Be Safe

Core Viewpoint - Prospect Capital Corporation (NASDAQ: PSEC) has reduced its monthly dividend from $0.06 per share, marking the first dividend cut since 2017, primarily due to declining PIK-related interest [1] Group 1: Dividend Changes - The company maintained a stable dividend of $0.06 per share per month since 2007 before the recent cut [1] Group 2: Impact on Investors - The reduction in dividend has shocked passive income investors, indicating a significant shift in the company's financial strategy [1]