Prospect Capital Corporation (PSEC)

Dividend Opportunity — Ex-Date Wednesday, January 28, 2026

2 days until ex-date
Ex-Date
Jan 28, 2026
Dividend
$0.0450
Forward Yield
6.23%
Payment Date
Feb 18, 2026
Opportunity Scores
Tier 3Low Confidence
Capture Score
38
Long-Term Score
20
Quality
20
Opportunity Rank
64
Capture Playbook
Strategy for dividend capture trade
Quick Capture
Only 2 days until ex-date

Trade Timeline

Entry
Wed, Jan 21
Plan entry around 7 days before the 2026-01-28 ex-dividend date (i.e., on or about 2026-01-21), sizing small due to low confidence and thin edge.
Ex-Date
Wed, Jan 28
Dividend locked in
Exit
Thu, Jan 29
Exit 1 trading day after ex-dividend (around 2026-01-29), regardless of short-term fluctuations, as longer holds show worse historical performance.
Expected Return
+0.41%
Historical Win Rate
54%

Risk Factors

  • Historical performance edge is very small: the recommended 7d buy / 1d sell strategy shows only a 0.41% average return with a 53.6% win rate, which can easily be erased by slippage and fees.
  • Gap fill rate is 0.0% for both 7-day and 14-day windows, implying that post-ex-dividend price drops have not reliably recovered within those horizons.
  • Short-term momentum is flat (5-day and 20-day momentum slopes both 0.0000%/day), offering no trend-based tailwind to help the capture trade.
  • ATR is reported as 0.00, which is likely a data anomaly or sign of abnormal liquidity; either case raises execution risk and questions the reliability of the backtest statistics.
  • Alternative capture windows mostly show negative results: Buy 1d/Sell 1d (-0.64% avg), 1d/7d (-0.83%), and 1d/14d (-1.00%), suggesting weak structural support for dividend capture in this name.
  • Low overall Quality Score (20/100) and Long-Term Score (20/100) increase the risk that adverse company-specific news could overwhelm any small capture edge.

Action Checklist

  • 1.Confirm latest price, yield, and any recent news on $PSEC to ensure no major developments since this dataset.
  • 2.If pursuing capture, schedule a potential entry around 7 days before the 2026-01-28 ex-date (approximately 2026-01-21).
  • 3.Define a maximum position size appropriate for a low-edge, low-confidence trade (e.g., smaller than your typical capture sizing).
  • 4.Set a firm exit plan to sell 1 trading day after ex-date (around 2026-01-29), regardless of outcome, to adhere to the historically best-performing window.
  • 5.Account for commissions, bid/ask spread, and potential slippage; if these exceed ~0.4% of trade value, reconsider the trade as the historical edge may be fully consumed.
  • 6.Monitor intraday liquidity and spreads before entry; abort or reduce size if spreads are unusually wide or volume is thin.
  • 7.Do not treat PSEC as a long-term core holding unless future improvements in quality and long-term scores are evident.
Scenario Analysis
StrategyAvg ReturnWin RateHistorical Events
Buy 14D, Sell 7D After
Buy 14 days before ex-date, sell 7 days after
+0.89%57%207 ex-dates
Quick CaptureBest
Buy 7 days before ex-date, sell 1 day after
+0.41%54%207 ex-dates
14-Day Hold
Buy 1 day before ex-date, sell 14 days after
-1.00%46%207 ex-dates
Classic Capture
Buy 1 day before ex-date, sell 7 days after
-0.83%43%207 ex-dates
Same-Day
Buy 1 day before ex-date, sell 1 day after
-0.64%36%207 ex-dates

* Returns include dividend capture yield plus price change. Past performance does not guarantee future results.

Analysis Summary

PSEC offers a 6.43% forward yield with a $0.045 dividend, but its very low quality (20/100) and long-term score (20/100) make it unattractive as a core income holding. The best historical capture setup is a 7-day-before/1-day-after trade with a modest 0.41% average return and 53.6% win rate, which is a thin edge and subject to data and liquidity concerns.

Historical Capture Performance
Based on past dividend events for PSEC
Avg Capture Yield
1.15%
Avg Recovery Days
0.0
7-Day Gap Fill
0%
14-Day Gap Fill
0%

This analysis is for informational purposes only and is not financial advice. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.