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

Stellus Capital Investment Co. (NYSE:SCM - Get Free Report) announced a dividend on Saturday, May 24th, investing.com reports. Shareholders 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 yield of 11.99%. The ex-dividend date of this dividend is Friday, May 30th.

Stellus Capital Investment has raised its dividend by an average of 16.6% annually over the last three years. Stellus Capital Investment has a dividend 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 stock remained flat at $13.38 during midday trading on Thursday. The company's stock had a trading volume of 87,180 shares, compared to its average volume of 161,787. The company has a current ratio of 0.29, a quick ratio of 0.29 and a debt-to-equity ratio of 1.15. Stellus Capital Investment has a 12-month low of $11.19 and a 12-month high of $15.56. The firm has a 50 day moving average price of $13.13 and a 200 day moving average price of $13.83. The company has a market capitalization of $380.21 million, a PE ratio of 6.83 and a beta of 0.86.

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

Analysts Set New Price Targets

Several research firms have recently issued reports on SCM. Keefe, Bruyette & Woods reduced their target price on Stellus Capital Investment from $13.50 to $13.00 and set a "market perform" rating on the stock in a research note on Tuesday, April 8th. Wall Street Zen downgraded Stellus Capital Investment from a "hold" rating to a "sell" rating in a report on Thursday, May 22nd.

Institutional Investors Weigh In On Stellus Capital Investment

An institutional investor recently bought a new position in Stellus Capital Investment stock. Jane Street Group LLC bought a new position in Stellus Capital Investment Co. (NYSE:SCM - Free Report) during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 11,205 shares of the investment management company's stock, valued at approximately $157,000. 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.