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PennantPark (PNNT) raised its dividend despite falling income and rising credit risk, while its sibling PFLT showed stronger financial health.
PennantPark Investment Corp. (PNNT) declared a $0.08 monthly dividend for October 2025, payable November 3 to shareholders of record October 15, maintaining its eight-year streak of dividend increases.
The payout yields about 14.6% annually, but net investment income of $0.18 per share in Q3 2025 fell short of the $0.24 distributed, creating a 25% coverage gap.
The company’s net asset value declined to $7.36 by June 30, 2025, and non-accrual loans rose to 2.8% of the portfolio.
Meanwhile, PennantPark Floating Rate Capital (PFLT) declared a $0.1025 monthly distribution, funded by taxable income, with a 119% coverage ratio as of June 30 and a net asset value of $10.96.
Both firms focus on floating-rate debt to middle-market U.S. companies, but PNNT faces greater sustainability concerns due to declining income and rising credit risk.
PennantPark (PNNT) aumentó su dividendo a pesar de la caída de los ingresos y el aumento del riesgo crediticio, mientras que su hermano PFLT mostró una salud financiera más sólida.