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

Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report) announced a -- dividend on Monday, July 7th, Wall Street Journal reports. Investors 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 of this dividend is Tuesday, September 30th.

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. 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 Up 0.8%

Stellus Capital Investment stock traded up $0.12 during trading on Wednesday, hitting $14.65. 112,688 shares of the company were exchanged, compared to its average volume of 155,848. The business's 50 day moving average is $13.55 and its 200 day moving average is $13.84. Stellus Capital Investment has a 52 week low of $11.19 and a 52 week high of $15.56. The company has a market capitalization of $416.35 million, a P/E ratio of 10.17 and a beta of 0.88. The company has a current ratio of 0.08, a quick ratio of 0.08 and a debt-to-equity ratio of 1.09.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last announced its quarterly earnings data on Monday, May 12th. The investment management company reported $0.37 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.37. The firm had revenue of $24.95 million during the quarter, compared to the consensus estimate of $26.76 million. Stellus Capital Investment had a return on equity of 11.93% and a net margin of 36.35%. Analysts predict that Stellus Capital Investment will post 1.74 earnings per share for the current year.

Institutional Inflows and Outflows

An institutional investor recently raised its position in Stellus Capital Investment stock. Royal Bank of Canada increased its stake in shares of Stellus Capital Investment Corporation (NYSE:SCM - Free Report) by 15.8% during the first quarter, according to its most recent filing with the SEC. The institutional investor owned 27,882 shares of the investment management company's stock after purchasing an additional 3,808 shares during the period. Royal Bank of Canada owned 0.10% of Stellus Capital Investment worth $390,000 as of its most recent SEC filing. 13.22% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. Wall Street Zen upgraded Stellus Capital Investment from a "sell" rating to a "hold" rating in a research note on Friday, June 27th. Keefe, Bruyette & Woods reduced their price objective on Stellus Capital Investment from $13.50 to $13.00 and set a "market perform" rating for the company in a research note on Tuesday, April 8th.

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.