Computed head-to-head · 6 dimensions
PSEC vs RY
Prospect Capital Corporation versus Royal Bank of Canada — yield, safety, growth trend, cost, scale, and tax treatment.
RY wins 3–2 on our six-dimension comparison, but PSEC can still be the better fit depending on your priorities — see each dimension below.
PSEC or RY — which is better?
RY wins this comparison 3–2 across 6 dimensions. RY yields 2.38% — lower than PSEC's 28.09% — and carries a 9.0/10 dividend safety score (Strong) vs 1.9/10 for PSEC (Risky). RY wins 3–2 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 2.38% — a 25.71% difference that translates to $25,710 more per year on a $100,000 investment. On dividend safety, RY scores 9.0/10 (Strong) vs 1.9/10 (Risky) for PSEC — investors prioritizing income reliability should weight that gap alongside the yield difference.
Scorecard at a glance
| Dimension | PSEC | RY | Winner |
|---|---|---|---|
| Yield | 28.09% | 2.38% | PSEC wins |
| Dividend safety | 1.9/10 | 9.0/10 | RY wins |
| Growth trend | +15.05% vs 5y | -1.16% vs 5y | RY wins |
| Volatility (beta) | 0.81 | 0.93 | PSEC wins |
| Scale | $827M | $291.1B | RY wins |
| Tax efficiency | Qualified-eligible | Qualified-eligible | Tie |
| Overall | 2 wins | 3 wins | RY wins |
Dimension by dimension
PSEC wins on yield (28.09% vs 2.38%)
On a $10,000 investment that's about $2571 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 RY's 2.38% — especially if the higher yield is driven by covered calls or a falling share price.
RY wins on safety (9.0/10 vs 1.9/10)
Our score combines yield zone, payout ratio, trend vs 5-year average, instrument type, and size. RY scores better on the weighted average of those factors.
RY (9.0/10) scores 7.1 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.
RY shows healthier dividend-vs-price trend
RY's yield is 1.16% below its 5y average, versus 15.05% for PSEC. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
PSEC is less volatile (beta 0.81 vs 0.93)
Lower beta means smaller swings vs the S&P 500 — generally a steadier hold for income investors.
RY is 351.9× larger by market cap
Larger companies tend to have tighter spreads, deeper liquidity, and lower closure risk.
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 PSEC dividends qualified and are RY 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
PSEC or RY — which is better?
RY is better on our scoring, winning 3–2 across six dimensions: yield, dividend safety, growth, cost, scale, and tax treatment. RY wins 3–2 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, PSEC or RY?
RY wins 3–2 on our six-dimension comparison, but PSEC can still be the better fit depending on your priorities — see each dimension below.
PSEC vs RY: which has a higher dividend yield?
PSEC yields 28.09% and RY yields 2.38%. On a $10,000 investment that's about $2571 more in annual dividend income before taxes — though higher yield often comes with higher risk.
Is PSEC or RY a safer dividend in 2026?
PSEC scores 1.9/10 (Risky) on the Infnits dividend safety scale. RY scores 9.0/10 (Strong). RY is the safer pick on our scoring model.
Which has better dividend growth, PSEC or RY?
RY's yield is 1.16% below its 5y average, versus 15.05% for PSEC. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
PSEC vs RY: 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 PSEC vs RY data updates.
Compare both against your actual holdings
Put PSEC and RY 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 RY diversifies you or just duplicates what you hold. No account, no download.