Stellus Capital Investment Corporation (NYSE:SCM) Announces -- Dividend of $0.13

Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report) declared a -- dividend on Monday, July 7th, Wall Street Journal reports. Shareholders of record on Tuesday, September 30th will be paid a dividend of 0.1333 per share by the investment management company on Wednesday, October 15th. This represents a yield of 11.1%. The ex-dividend date is Tuesday, September 30th.

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

NYSE SCM remained flat at $14.44 during midday trading on Monday. The company's stock had a trading volume of 118,101 shares, compared to its average volume of 156,262. The stock has a market cap of $410.38 million, a P/E ratio of 10.03 and a beta of 0.88. The company has a quick ratio of 0.08, a current ratio of 0.08 and a debt-to-equity ratio of 1.09. The business has a fifty day moving average of $13.47 and a 200-day moving average of $13.82. Stellus Capital Investment has a 52-week low of $11.19 and a 52-week high of $15.56.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last posted its quarterly earnings results on Monday, May 12th. The investment management company reported $0.37 EPS for the quarter, hitting analysts' consensus estimates of $0.37. Stellus Capital Investment had a return on equity of 11.93% and a net margin of 36.35%. The company had revenue of $24.95 million during the quarter, compared to analysts' expectations of $26.76 million. On average, equities analysts anticipate that Stellus Capital Investment will post 1.74 EPS for the current year.

Institutional Trading of Stellus Capital Investment

An institutional investor recently bought a new position in Stellus Capital Investment stock. Jane Street Group LLC purchased a new stake in shares of Stellus Capital Investment Corporation (NYSE:SCM - Free Report) in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 11,205 shares of the investment management company's stock, valued at approximately $157,000. 13.22% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities research analysts have commented on SCM shares. Keefe, Bruyette & Woods reduced their price target on Stellus Capital Investment from $13.50 to $13.00 and set a "market perform" rating on the stock in a research report on Tuesday, April 8th. Wall Street Zen raised Stellus Capital Investment from a "sell" rating to a "hold" rating in a research note on Friday, June 27th.

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.