Covered — barely, and NAV is slipping. The card shows PFLT two ways on purpose: 15.05% on the $0.08 monthly base, 15.67% only with the $0.0033 monthly supplemental. Fiscal Q3 2026 net investment income of $0.26 a share covers the current $0.2499 quarterly run rate, but only just, and NAV fell 2.0% in the quarter to $10.26 — the price sits at a deep discount to NAV for a reason.
Key risk: Floating-rate middle-market credit — falling base rates compress loan yields, and at 1.56× debt-to-equity there is little cushion if borrowers slip; the supplemental is the first thing to go.
Changes if: NII falls below the $0.24 quarterly base, or NAV falls again quarter over quarter. Supplementals never count toward this verdict either way.
- ✓Coverage check: Fiscal Q3 2026 NII of $0.26 a share against the October monthly run rate of $0.0833 ($0.2499 a quarter) — 96% payout, covered with almost no margin.
- !Yield check: Anyone quoting only the 15.67% figure is selling. The House scores PFLT on the base 15.05% — $0.08/mo × 12 at the $6.38 close on Oct. 23, 2026; the price is down about 31% year to date.
- !NAV check: NAV per share of $10.26 at June 30, 2026, down 2.0% quarter over quarter, with $56.6 million of net unrealized depreciation in the quarter against $37.3 million of realized gains.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.