Stellus Capital Investment Co. (NYSE:SCM) to Issue Monthly Dividend of $0.13

Stellus Capital Investment Co. (NYSE:SCM - Get Free Report) declared a monthly dividend on Tuesday, April 9th, Wall Street Journal reports. Stockholders of record on Friday, June 28th will be given a dividend of 0.1333 per share by the investment management company on Monday, July 15th. This represents a $1.60 annualized dividend and a dividend yield of 12.10%. The ex-dividend date is Friday, June 28th.

Stellus Capital Investment has raised its dividend by an average of 13.6% annually over the last three years and has raised its dividend every year for the last 2 years. Stellus Capital Investment has a dividend payout ratio of 95.2% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Equities research analysts expect Stellus Capital Investment to earn $1.69 per share next year, which means the company should continue to be able to cover its $1.60 annual dividend with an expected future payout ratio of 94.7%.

Stellus Capital Investment Stock Performance

Shares of SCM stock traded down $0.07 during trading on Tuesday, hitting $13.22. The company's stock had a trading volume of 108,969 shares, compared to its average volume of 111,582. The company has a current ratio of 0.20, a quick ratio of 0.20 and a debt-to-equity ratio of 1.31. Stellus Capital Investment has a 52 week low of $12.19 and a 52 week high of $15.40. The company has a market cap of $319.00 million, a PE ratio of 16.95 and a beta of 1.17. The business has a fifty day moving average of $12.97 and a 200-day moving average of $13.00.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last issued its quarterly earnings data on Tuesday, March 5th. The investment management company reported $0.45 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.46 by ($0.01). Stellus Capital Investment had a return on equity of 14.01% and a net margin of 16.56%. The business had revenue of $28.02 million during the quarter, compared to analysts' expectations of $27.20 million. During the same quarter last year, the business posted $0.44 EPS. As a group, research analysts anticipate that Stellus Capital Investment will post 1.77 earnings per share for the current year.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the company. B. Riley reiterated a "sell" rating and issued a $12.50 price objective (down previously from $13.00) on shares of Stellus Capital Investment in a research report on Wednesday, March 6th. Oppenheimer reiterated a "market perform" rating and issued a $14.00 price objective on shares of Stellus Capital Investment in a research report on Wednesday, March 6th. Finally, StockNews.com upgraded Stellus Capital Investment from a "sell" rating to a "hold" rating in a research report on Wednesday, March 13th.

Institutional Investors Weigh In On Stellus Capital Investment

A number of large investors have recently added to or reduced their stakes in the company. Legal & General Group Plc raised its position in Stellus Capital Investment by 10.0% during the fourth quarter. Legal & General Group Plc now owns 174,910 shares of the investment management company's stock valued at $2,248,000 after purchasing an additional 15,896 shares in the last quarter. Advisors Asset Management Inc. grew its stake in shares of Stellus Capital Investment by 7.1% during the first quarter. Advisors Asset Management Inc. now owns 159,368 shares of the investment management company's stock valued at $2,245,000 after buying an additional 10,626 shares during the last quarter. Two Sigma Advisers LP grew its stake in shares of Stellus Capital Investment by 97.2% during the first quarter. Two Sigma Advisers LP now owns 142,000 shares of the investment management company's stock valued at $2,001,000 after buying an additional 70,000 shares during the last quarter. Two Sigma Investments LP grew its stake in shares of Stellus Capital Investment by 117.8% during the first quarter. Two Sigma Investments LP now owns 140,899 shares of the investment management company's stock valued at $1,985,000 after buying an additional 76,208 shares during the last quarter. Finally, Marshall Wace LLP bought a new position in shares of Stellus Capital Investment during the second quarter valued at about $1,583,000. Hedge funds and other institutional investors own 13.22% of the company's stock.

Stellus Capital Investment Company Profile

Stellus Capital Investment Corporation is a business development company specializing in investments in private middle-market companies. It invests through first lien, second lien, unitranche, and mezzanine debt financing, often with a corresponding equity investment. The fund prefers to invest in US and Canada.