Prospect Capital Stock: Huge Discount & 20% Yield Are Signs To Avoid At All Costs (PSEC)

Core Viewpoint - Prospect Capital Corp. (NASDAQ: PSEC) presents an attractive investment opportunity due to its significant discount to net asset value and a yield exceeding 20%, appealing particularly to income-focused investors [1]. Group 1 - The company is characterized as a lower-quality investment, which may tempt investors seeking high yields [1]. - The current yield of over 20% is highlighted as a key factor for income-focused investors [1]. - The article emphasizes the importance of conducting due diligence before making investment decisions [1]. Group 2 - The author expresses a personal investment philosophy focused on quality blue-chip stocks, BDCs, and REITs, aiming to supplement retirement income through dividends [1]. - There is a goal to assist lower and middle-class workers in building high-quality, dividend-paying investment portfolios [1].