Computed head-to-head · 6 dimensions
GAIN vs PSEC
Gladstone Investment Corporation versus Prospect Capital Corporation — yield, safety, growth trend, cost, scale, and tax treatment.
GAIN wins 2–1 on our six-dimension comparison, but PSEC can still be the better fit depending on your priorities — see each dimension below.
GAIN or PSEC — which is better?
GAIN wins this comparison 2–1 across 6 dimensions. GAIN yields 6.17% — lower than PSEC's 28.09% — and carries a 6.3/10 dividend safety score (Mixed) vs 1.9/10 for PSEC (Risky). GAIN wins 2–1 on our six-dimension comparison, but PSEC can still be the better fit depending on your priorities — see each dimension below.
On yield alone, PSEC generates 28.09% vs 6.17% — a 21.92% difference that translates to $21,920 more per year on a $100,000 investment. On dividend safety, GAIN scores 6.3/10 (Mixed) vs 1.9/10 (Risky) for PSEC — investors prioritizing income reliability should weight that gap alongside the yield difference.
Scorecard at a glance
| Dimension | GAIN | PSEC | Winner |
|---|---|---|---|
| Yield | 6.17% | 28.09% | PSEC wins |
| Dividend safety | 6.3/10 | 1.9/10 | GAIN wins |
| Growth trend | -0.44% vs 5y | +15.05% vs 5y | GAIN wins |
| Volatility (beta) | 0.76 | 0.81 | Tie |
| Scale | $620M | $827M | Tie |
| Tax efficiency | Qualified-eligible | Qualified-eligible | Tie |
| Overall | 2 wins | 1 wins | GAIN wins |
Dimension by dimension
PSEC wins on yield (28.09% vs 6.17%)
On a $10,000 investment that's about $2192 more in annual dividend income before taxes — though higher yield often comes with higher risk.
PSEC's higher yield (28.09%) looks attractive but investors should weigh whether the extra income compensates for any additional risk versus GAIN's 6.17% — especially if the higher yield is driven by covered calls or a falling share price.
GAIN wins on safety (6.3/10 vs 1.9/10)
Our score combines yield zone, payout ratio, trend vs 5-year average, instrument type, and size. GAIN scores better on the weighted average of those factors.
GAIN (6.3/10) scores 4.4 points higher than PSEC (1.9/10). A higher safety score means lower historical indicators of dividend cut risk — payout ratio, yield zone, and trend all factor in.
GAIN shows healthier dividend-vs-price trend
GAIN's yield is 0.44% below its 5y average, versus 15.05% for PSEC. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
Volatility (beta) is similar
Both tickers move with comparable sensitivity to the broader market.
Comparable scale ($620M vs $827M)
Within 1.5x of each other on market cap / AUM — similar institutional footprint.
Both pay qualified-dividend-eligible distributions
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
Full breakdown per ticker: are GAIN dividends qualified and are PSEC dividends qualified — each with the after-tax income at every federal bracket.
How we compare these
Every comparison on this page is computed from current public data, not written by hand. Yield comes from the most recent dividend distribution annualized over current price. Safety scores combine yield zone, payout ratio, trend vs 5-year average, instrument type, and size — see our methodology for the exact formula. Tax-efficiency flags identify covered-call ETFs, REITs, and mREITs which distribute primarily as ordinary income.
This is educational, not investment advice. Scores reflect a snapshot of public data on the "as of" dates shown on each ticker's safety page. Verify on the issuer's investor relations page or your brokerage before making decisions.
Frequently asked
GAIN or PSEC — which is better?
GAIN is better on our scoring, winning 2–1 across six dimensions: yield, dividend safety, growth, cost, scale, and tax treatment. GAIN wins 2–1 on our six-dimension comparison, but PSEC can still be the better fit depending on your priorities — see each dimension below.
Which is better for income, GAIN or PSEC?
GAIN wins 2–1 on our six-dimension comparison, but PSEC can still be the better fit depending on your priorities — see each dimension below.
GAIN vs PSEC: which has a higher dividend yield?
GAIN yields 6.17% and PSEC yields 28.09%. On a $10,000 investment that's about $2192 more in annual dividend income before taxes — though higher yield often comes with higher risk.
Is GAIN or PSEC a safer dividend in 2026?
GAIN scores 6.3/10 (Mixed) on the Infnits dividend safety scale. PSEC scores 1.9/10 (Risky). GAIN is the safer pick on our scoring model.
Which has better dividend growth, GAIN or PSEC?
GAIN's yield is 0.44% below its 5y average, versus 15.05% for PSEC. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
GAIN vs PSEC: which is more tax-efficient?
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
Get emailed when GAIN vs PSEC data updates.
Compare both against your actual holdings
Put GAIN and PSEC into the free analyzer with the rest of your portfolio. You'll see what each one contributes to your annual income, your weighted safety score, and whether adding GAIN diversifies you or just duplicates what you hold. No account, no download.