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

Key Points

• Stellus Capital announced a monthly dividend of $0.1133 per share, payable June 15 to holders of record May 29, which annualizes to about $1.36 and implies a ~13.7% yield.
• The dividend's sustainability is uncertain now — the company has a 107.9% payout ratio, meaning it currently relies on its balance sheet to fund distributions, though analysts forecast $1.45 EPS next year (implying a projected payout ratio of ~93.8%).
• Shares traded up ~2.6% to $9.94, with a market cap of ~$287.6M, a P/E of ~10.6 and a 12‑month range of $8.43–$15.39, reflecting elevated yield but modest valuation and recent revenue/earnings misses.

Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report) announced a monthly dividend on Tuesday, April 14th. Stockholders of record on Friday, May 29th will be paid a dividend of 0.1133 per share by the investment management company on Monday, June 15th. This represents a c) dividend on an annualized basis and a dividend yield of 13.7%. The ex-dividend date of this dividend is Friday, May 29th.

Stellus Capital Investment has raised its dividend payment by an average of 0.1%per year over the last three years. Stellus Capital Investment has a dividend payout ratio of 107.9% indicating that 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%

Shares of SCM traded up $0.26 during trading hours on Wednesday, reaching $9.94. 163,938 shares of the company traded hands, compared to its average volume of 239,523. The company's fifty day moving average price is $10.01 and its two-hundred day moving average price is $11.60. The company has a market capitalization of $287.62 million, a price-to-earnings ratio of 10.57 and a beta of 0.67. The company has a quick ratio of 0.14, a current ratio of 0.14 and a debt-to-equity ratio of 1.13. Stellus Capital Investment has a 12 month low of $8.43 and a 12 month high of $15.39.

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