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Where can you earn 17% dividend on a US based company? At Prospect Capital Corporation (NASDAQ:PSEC). The upcoming dividend is .40625, which is a 16.89% yield at $10.17 share price which will ex-dividend on July 6th 2009. This dividend is the same amount that is had paid out for the prior 4 quarters.

It earns its dividends from investing into companies needing capital. What I like about this company is that the firm has expertise in energy and industrial sectors. It wisely invests in oil and gas, coal, materials, industrials, information technology, utilities, pipeline, storage, power generation, renewable and clean energy, and other types. Energy, materials, and technology are three candidates that have great potential for high ROI, as well as dividend payback.

Insiders are agreeing with me, as insider buying has been regular and intensive. Insider buying is just a clue - but a good one.

Prospect Capital has raised capital recently. It announced it has raised $64 million in gross proceeds from its public offering of roughly 7.8 million shares of common stock. Those shares were priced at $8.25 and investors are probably believing that the newly raised capital will be invested in more companies, that is in demand in this tight economy by companies of all types. This quarter's dividend is a repeat of the priors, the next quarter dividend could go down due to share dilution.

See this Yahoo Finance chart for more information about previous dividends and stock price movement.

We see stock appreciation over the long term, when the US & Canada economy picks back up in 2010 and 2011. In the mean time, why not earn a really nice dividend? Examine the chart closely and potentially buy on the dips. The chart shows a share price drop after each dividend payout.

Disclosure: Long

Source: Invest in Prospect Capital Corporation's High Dividend