Since monthly dividends will cause 3 times as much work than quarterly dividends, why do you think they made the change?

Topic transcript on dividends:

Shares of Prospect Capital (NASDAQ:PSEC) stabilized on Tuesday -- trading up slightly on the day as of mid-afternoon -- after falling sharply Monday on high volume, in reaction to news about the company's dividend policy. On the positive side of the company's announcement, investors will be treated to monthly dividend payments going forward, versus the prior quarterly dividend frequency. In general, proponents of a monthly dividend argue that retirees looking for steady income are more attracted to monthly dividend payers, and that the higher demand for those monthly paying stocks among income investors can translate into a higher stock price with a lower yield.

On the negative side to Prospect's dividend announcement, the new monthly rate over the course of a three month period amounts to just over 30 cents, a sharp cut as compared to the prior quarterly dividend rate of 41 cents, and erasing about four years of dividend increases -- bringing investors back to the dividend level the company paid back in March 2006. And the new monthly payout begins with the month of June, meaning for the quarter covering April, May, and June, investors will only receive a 10 cent payment for June, which the company lists as a quarterly payment on the dividend page of its website.

Among Prospect's industry peers, Gladstone Capital (NASDAQ:GLAD) and Main Street Capital (NYSE:MAIN) are both monthly payers, and trade at yields of 7.6% and 9.8% respectively. Meanwhile quarterly payers include Apollo Investment Corp (NASDAQ:AINV) and Ares Capital (NASDAQ:ARCC) which both trade at higher yields -- 11.1% and 10.3% respectively. How much of the valuation difference is driven by the monthly payout is anybody's guess, but bulls suggest if Prospect's new steady payout eventually translates into a higher share price for a lower yield -- say 10% versus the current 11.7% yield -- that means shares could appreciate in price by about 18% from current levels.