Dividend and Recent Developments for Gladstone Capital: Key Insights Before Ex-Dividend Date on Sep 23, 2025

Gladstone Capital (GLAD) has scheduled its next cash dividend distribution of $0.10 per share, with an ex-dividend date set for Sep 23, 2025. The dividend was announced on Sep 12, 2025, and will be paid on Sep 29, 2025. This payment is slightly higher than the average of the last 10 dividend per share amounts, which stood at approximately $0.097. The most recent cash dividend was issued on Aug 29, 2025, at $0.165 per share, highlighting a pattern of variable payouts typical of Business Development Companies (BDCs). As a result, investors should note that Sep 23, 2025, is the last day to purchase GLAD shares and be eligible for the upcoming dividend—any purchase after this date will not qualify for the distribution.

Over the past week, GLAD has been at the center of several key developments. Most recently, the company announced its intent to redeem all outstanding 5.125% Notes due 2026 and 7.75% Notes due 2028, signaling a strategic shift to streamline its debt obligations. This move is expected to reduce interest expenses and improve the company’s balance sheet flexibility. Investors have taken note, as the stock recently crossed above its 200-day moving average, prompting speculation about further upside potential. Meanwhile, analysts have highlighted GLAD’s exceptionally low leverage in the BDC sector, with a debt-to-equity ratio of 0.59x, significantly below the industry average of 1.19x, which is seen as a positive indicator of financial stability.

Since the last update, GLAD’s recent earnings performance has drawn attention, particularly with a projected 34% annual decline in earnings, raising concerns about the sustainability of its dividend. The company’s recent refinancing of $149.5 million in 5.875% convertible notes has also sparked discussions about potential equity dilution risks, as the conversion price of $26.02 per share could lead to the issuance of over 5.7 million new shares if the stock price rises. While this refinancing was aimed at reducing debt costs and extending maturities, the equity-linked nature of the notes introduces uncertainty regarding future shareholder value. As of late, GLAD’s stock has traded near the conversion threshold, creating a scenario where even minor price fluctuations could trigger conversions.

Gladstone Capital’s latest stock price, as of Sept 10, 2025, is $26.91 per share, reflecting modest gains in recent sessions. The company’s robust net investment income of $0.50 per share continues to support its 7.36% dividend yield, but the looming earnings decline and potential dilution from its convertible notes remain key risks. Investors are advised to closely monitor GLAD’s portfolio performance and capital deployment strategies in the coming weeks, as these factors will likely influence its ability to maintain dividend payments and navigate the challenges of a high-rate environment. As the ex-dividend date approaches on Sep 23, 2025, market participants should stay informed about any developments that could affect the company’s financial outlook and stock valuation.