Highest Dividend Advantage: How PennantPark Floating Rate Capital (PFLT) Stands Out

PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) is included among the 10 Stocks with Highest Dividend to Buy Right Now.

PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) is an American business development company that provides senior secured first lien notes. By the close of 2024, the company had around $1.964 billion of its $2.194 billion portfolio allocated to debt securities, with the rest invested in preferred and common equity. The management team has been notably effective in safeguarding invested capital. With an average investment size of $13.8 million, including equity holdings, the portfolio remains well-diversified, reducing the risk that any single investment could significantly impact overall performance.

PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) reported strong earnings in the first quarter of 2025. The company’s total investment income was $61.9 million, which showed a nearly 40% growth from the same period last year. As of March 31, 2025, the company’s portfolio stood at $2,344.1 million, comprising $2.1 billion in first lien secured debt, $4.4 million in subordinated debt, and $239.5 million in preferred and common equity. The debt portion of the portfolio was made up entirely of variable-rate investments.

PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) is one of the best stocks with the highest dividend, as the company has paid uninterrupted dividends to shareholders since 2011. The company offers a monthly dividend of $0.1025 per share and has a dividend yield of 11.48%, as of July 27.

While we acknowledge the potential of PFLT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.