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

Stellus Capital Investment Co. (NYSE:SCM - Get Free Report) announced a dividend on Saturday, May 24th, investing.com reports. Stockholders of record on Monday, June 2nd will be paid a dividend of 0.1333 per share by the investment management company on Friday, June 13th. This represents a dividend yield of 11.99%. The ex-dividend date of this dividend is Friday, May 30th.

Stellus Capital Investment has increased its dividend by an average of 16.6% per year over the last three years. Stellus Capital Investment has a payout ratio of 127.0% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Stellus Capital Investment to earn $1.45 per share next year, which means the company may not be able to cover its $1.60 annual dividend with an expected future payout ratio of 110.3%.

Stellus Capital Investment Stock Performance

SCM traded down $0.16 during trading on Wednesday, reaching $13.38. 112,575 shares of the company's stock were exchanged, compared to its average volume of 162,227. Stellus Capital Investment has a fifty-two week low of $11.19 and a fifty-two week high of $15.56. The company has a quick ratio of 0.29, a current ratio of 0.29 and a debt-to-equity ratio of 1.15. The business has a 50 day moving average price of $13.15 and a 200 day moving average price of $13.84. The company has a market capitalization of $380.29 million, a P/E ratio of 6.83 and a beta of 0.86.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last issued its earnings results on Monday, May 12th. The investment management company reported $0.37 earnings per share for the quarter, meeting the consensus estimate of $0.37. Stellus Capital Investment had a net margin of 45.39% and a return on equity of 13.49%. The business had revenue of $24.95 million for the quarter, compared to analyst estimates of $26.76 million. As a group, analysts predict that Stellus Capital Investment will post 1.74 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Stellus Capital Investment

A hedge fund recently bought a new stake in Stellus Capital Investment stock. Jane Street Group LLC bought a new position in Stellus Capital Investment Co. (NYSE:SCM - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 11,205 shares of the investment management company's stock, valued at approximately $157,000. 13.22% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms have weighed in on SCM. Keefe, Bruyette & Woods decreased their price objective on Stellus Capital Investment from $13.50 to $13.00 and set a "market perform" rating on the stock in a report on Tuesday, April 8th. Wall Street Zen lowered Stellus Capital Investment from a "hold" rating to a "sell" rating in a research note on Thursday, May 22nd.

About Stellus Capital Investment

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.