Stellus Capital Investment Corporation Announces Monthly Dividend of $0.11 (NYSE:SCM)

Key Points

• Stellus declared a monthly dividend of $0.1133 per share (record date June 30, payable July 15), implying an annualized yield of about 13.7%.
• The dividend is currently not fully covered by earnings—a reported payout ratio of 107.9%—meaning payments rely on the balance sheet; analysts forecast $1.45 EPS next year, which would lower the projected payout to roughly 93.8% and could cover the $1.36 annual dividend.
• SCM traded at $9.94 (up 2.6%) with a market cap near $287.6M, and carries a consensus "Hold" rating and a $9.00 target after recent price‑target cuts.

Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report) declared a monthly dividend on Tuesday, April 14th. Investors of record on Tuesday, June 30th will be paid a dividend of 0.1133 per share by the investment management company on Wednesday, July 15th. This represents a c) annualized dividend and a yield of 13.7%. The ex-dividend date is Tuesday, June 30th.

Stellus Capital Investment has raised its dividend by an average of 0.1%annually over the last three years. Stellus Capital Investment has a dividend payout ratio of 107.9% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Stellus Capital Investment to earn $1.45 per share next year, which means the company should continue to be able to cover its $1.36 annual dividend with an expected future payout ratio of 93.8%.

Stellus Capital Investment Trading Up 2.6%

SCM stock traded up $0.26 during trading on Wednesday, reaching $9.94. The company had a trading volume of 163,938 shares, compared to its average volume of 239,523. Stellus Capital Investment has a 52 week low of $8.43 and a 52 week high of $15.39. The company has a market cap of $287.62 million, a P/E ratio of 10.57 and a beta of 0.67. The business has a 50 day moving average of $10.01 and a 200 day moving average of $11.60. The company has a debt-to-equity ratio of 1.13, a current ratio of 0.14 and a quick ratio of 0.14.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last released its quarterly earnings results on Wednesday, March 11th. The investment management company reported $0.29 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.31 by ($0.02). Stellus Capital Investment had a return on equity of 10.28% and a net margin of 26.48%.The company had revenue of $23.98 million during the quarter, compared to the consensus estimate of $26.33 million. As a group, sell-side analysts forecast that Stellus Capital Investment will post 1.74 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of brokerages have weighed in on SCM. Weiss Ratings restated a "hold (c)" rating on shares of Stellus Capital Investment in a report on Monday, December 29th. Keefe, Bruyette & Woods cut their price objective on shares of Stellus Capital Investment from $13.00 to $9.00 and set a "market perform" rating on the stock in a report on Monday, March 16th. Three equities research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $9.00.

Stellus Capital Investment Company Profile

Stellus Capital Investment Corporation NYSE: SCM is a closed-end, externally managed business development company that provides debt and equity financing to middle market companies in the United States. As an investment vehicle specializing in private credit, Stellus focuses on originating and structuring senior secured loans, unitranche facilities, mezzanine debt, and equity co-investments tailored to the unique needs of growing businesses. Its flexible capital solutions are designed to support acquisitions, recapitalizations, growth initiatives, and balance sheet refinancings.

Operating under an evergreen structure, Stellus Capital Investment partners with a diverse group of portfolio companies across industries such as manufacturing, healthcare, business services, and specialty finance.

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