Prospect Capital Corp. Dividend Yield: A Cautionary Tale of Total Return

This article discusses the importance of total return in investing, highlighting the risks of focusing solely on dividend yields. A 21.1% dividend yield on Prospect Capital Corp. may look appealing, but it comes with an 85% total return over 21 years, resulting in an annualized return of only 3%. The article recommends a "Goldilocks" approach, seeking yields between 8% and 10%, such as the Liberty All-Star Equity Fund's 10.9% yield.