Stellus Capital Investment Corporation (NYSE:SCM) Announces Monthly Dividend of $0.08

Key Points

• Stellus Capital Investment announced a monthly dividend of $0.0833 per share, with shareholders of record on August 31 set to be paid on September 15. The dividend implies an annualized yield of 11.9%.
• The company’s dividend appears stretched: its payout ratio is 107.9%, meaning earnings do not fully cover the current dividend. Analysts also expect next year’s payout ratio to rise to 132.0%.
• SCM recently reported $0.27 EPS for its latest quarter, meeting expectations, but revenue came in below estimates at $17.45 million versus $24.80 million expected. Shares were last quoted at $8.42, well below the 52-week high of $15.39.

Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report) announced a monthly dividend on Thursday, July 16th. Shareholders of record on Monday, August 31st will be paid a dividend of 0.0833 per share by the investment management company on Tuesday, September 15th. This represents a c) annualized dividend and a yield of 11.9%. The ex-dividend date is Monday, August 31st.

Stellus Capital Investment has increased its dividend payment 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 $1.03 per share next year, which means the company may not be able to cover its $1.36 annual dividend with an expected future payout ratio of 132.0%.

Stellus Capital Investment Price Performance

Shares of NYSE SCM opened at $8.42 on Friday. Stellus Capital Investment has a fifty-two week low of $7.78 and a fifty-two week high of $15.39. The company has a market cap of $243.76 million, a PE ratio of 10.27 and a beta of 0.64. The company has a debt-to-equity ratio of 1.05, a quick ratio of 0.04 and a current ratio of 0.04. The business has a 50-day simple moving average of $8.74 and a two-hundred day simple moving average of $10.09.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last posted its quarterly earnings data on Monday, May 11th. The investment management company reported $0.27 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.27. The firm had revenue of $17.45 million for the quarter, compared to the consensus estimate of $24.80 million. Stellus Capital Investment had a net margin of 23.59% and a return on equity of 9.69%. As a group, equities analysts expect that Stellus Capital Investment will post 1.06 EPS for the current fiscal year.

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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