Prospect Capital (FRA:RK8) 5-Year Yield-on-Cost %: 20.61 (As of Aug. 03, 2026) — 94% Above Median

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FRA:RK8 Prospect Capital Corp FRA:RK8
19 GF Score
Price €1.86
! 1 Warning Sign
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What is Prospect Capital 5-Year Yield-on-Cost %?

Prospect Capital FRA:RK8 -1.38% 19 5-Year Yield-on-Cost % is 20.61 as of Aug. 03, 2026, which is 94% above its 10-year median of 10.61. GuruFocus rates FRA:RK8 with a GF Score™ of 19/100. The stock has 1 warning sign investors should review. Among 1,112 Asset Management companies, Prospect Capital ranks better than 93.97% on this metric.

Prospect Capital's yield on cost for the quarter that ended in Mar. 2026 was 20.61.


The historical rank and industry rank for Prospect Capital's 5-Year Yield-on-Cost % or its related term are showing as below:

FRA:RK8' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 6.86   Med: 10.61   Max: 22.33
Current: 20.61


During the past 13 years, Prospect Capital's highest Yield on Cost was 22.33. The lowest was 6.86. And the median was 10.61.


FRA:RK8's 5-Year Yield-on-Cost % is ranked better than
93.97% of 1112 companies
in the Asset Management industry
Industry Median: 6.5 vs FRA:RK8: 20.61

Prospect Capital  (FRA:RK8) 5-Year Yield-on-Cost % Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.


Prospect Capital 5-Year Yield-on-Cost % Related Terms


FRA:RK8 vs EMO, EVV, FPF: 5-Year Yield-on-Cost % Comparison

For the Asset Management subindustry, Prospect Capital's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Prospect Capital 5-Year Yield-on-Cost % vs Asset Management Industry

For the Asset Management industry and Financial Services sector, Prospect Capital's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where Prospect Capital's 5-Year Yield-on-Cost % falls into.


FRA:RK8
19GF Score
Prospect Capital Corp FRA:RK8
5-Year Yield-on-Cost % is just one metric. See GF Score™, valuation, warning signs, and more.
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Prospect Capital 5-Year Yield-on-Cost % Calculation

Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of Prospect Capital is calculated as

Yield-on-Cost=Dividend Yield %*(1+Dividend Growth Rate)^5
Frequently Asked Questions Learn more about 5-Year Yield-on-Cost % →
What does a 5-Year Yield-on-Cost % of 20.61 mean?
Prospect Capital (FRA:RK8) has a 5-Year Yield-on-Cost % of 20.61 as of Aug. 03, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Prospect Capital and its competitors. This is 94% above median its historical median of 10.61. Over the past decade, Prospect Capital's 5-Year Yield-on-Cost % has ranged from 6.86 to 22.33. According to the industry distribution chart, Prospect Capital ranks #67 out of 1112 companies in the Asset Management industry, placing it in the top 6%.
Is Prospect Capital's 5-Year Yield-on-Cost % too high?
Prospect Capital's current 5-Year Yield-on-Cost % of 20.61 is 94% above median its 10-year median of 10.61. Over the past 10 years, this metric has ranged from a low of 6.86 to a high of 22.33. The Asset Management industry median 5-Year Yield-on-Cost % is 6.50. Prospect Capital's value of 20.61 is 217.1% above this industry median. Based on the distribution chart, Prospect Capital ranks #67 out of 1112 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Prospect Capital has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Prospect Capital's 5-Year Yield-on-Cost % compare to EMO and EVV?
According to the Asset Management industry distribution chart, Prospect Capital ranks #67 out of 1112 companies for 5-Year Yield-on-Cost %. This places Prospect Capital in the top 6% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 6.50. Prospect Capital's value of 20.61 is 217.1% above this benchmark. Historically, Prospect Capital's own 5-Year Yield-on-Cost % has ranged from 6.86 to 22.33 over the past decade. While the company's 10-year median is 10.61 vs. the industry median of 6.50, Prospect Capital has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for an Asset Management company?
The median 5-Year Yield-on-Cost % among Asset Management companies is 6.50, based on 1,112 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Prospect Capital's current 5-Year Yield-on-Cost % of 20.61 is 217.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Prospect Capital and its competitors. For the Asset Management industry, the median 5-Year Yield-on-Cost % is 6.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prospect Capital's current 5-Year Yield-on-Cost % is 20.61, which is 94% above median its own 10-year median of 10.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prospect Capital stock overvalued right now?
Prospect Capital (FRA:RK8) has a current 5-Year Yield-on-Cost % of 20.61. The current 5-Year Yield-on-Cost % is 20.61, which is 94% above median its 10-year median of 10.61 and 217.1% above the Asset Management industry median of 6.50. Prospect Capital's overall GF Score™ is 19/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Prospect Capital (FRA:RK8), the current 5-Year Yield-on-Cost % is 20.61 as of Aug. 03, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Prospect Capital Business Description

Other Exchanges PSEC:USA0R25:UKRK8:Germany
Address 10 East 40th Street, 42nd Floor, New York, NY, USA, 10016
Prospect Capital Corp is a closed-end investment company based in the United States. Its investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. The company invests mainly in senior and subordinated debt and equity of private companies for acquisitions, divestitures, growth, development, recapitalizations, and other purposes. It makes investments, including lending in private equity, sponsored transactions, directly to companies, investments in structured credit, real estate, and syndicated debt.
19GF Score

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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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