Base covered — the headline yield is not. The card shows PennantPark two ways on purpose: 16.72% on the $0.04 monthly base, 33.45% only if the $0.04 monthly supplemental survives. Fiscal Q3 2026 net investment income of $0.14 a share covers the $0.12 quarterly base but only about 58% of the $0.24 quarterly total; NAV fell 2.5% in the quarter to $6.56 and the price is down about 52% year to date.
Key risk: Supplemental dependence — the supplemental is funded from spillover income expected to decline to $0.40 a share by year-end; when it goes, the yield halves without any cut to the base.
Changes if: NII falls below the $0.12 quarterly base, or the supplemental is withdrawn — the verdict follows the base only either way.
- ✓Coverage check: Fiscal Q3 2026 NII of $0.14 a share against a $0.12 quarterly base ($0.04/mo) — 86% payout on the base. Against the $0.24 total, payout is about 171%: the total is not covered by the quarter’s NII.
- !Yield check: Anyone quoting the 33.45% figure is selling. The House scores PennantPark on the base 16.72% — $0.04/mo × 12 at the $2.87 close on Oct. 23, 2026.
- !NAV check: NAV per share of $6.56 at June 30, 2026, down 2.5% from $6.73 at March 31, 2026, on $16.2 million of net unrealized depreciation partly offset by a $12.0 million realized gain.
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.