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

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

Stellus Capital Investment has a payout ratio of 127.0% meaning 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 Price Performance

NYSE:SCM traded up $0.16 during mid-day trading on Thursday, hitting $14.81. 171,395 shares of the company's stock traded hands, compared to its average volume of 155,911. The company has a market cap of $420.90 million, a PE ratio of 10.28 and a beta of 0.88. The firm's 50 day simple moving average is $13.55 and its 200 day simple moving average is $13.84. Stellus Capital Investment has a 1 year low of $11.19 and a 1 year high of $15.56. The company has a debt-to-equity ratio of 1.09, a quick ratio of 0.08 and a current ratio of 0.08.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last posted its quarterly earnings data 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 firm had revenue of $24.95 million during the quarter, compared to analysts' expectations of $26.76 million. Sell-side analysts expect that Stellus Capital Investment will post 1.74 EPS for the current year.

Institutional Investors Weigh In On Stellus Capital Investment

A hedge fund recently bought a new stake in Stellus Capital Investment stock. Jane Street Group LLC bought a new stake in shares of Stellus Capital Investment Corporation (NYSE:SCM - Free Report) during the 1st quarter, according to its most recent filing with the SEC. The firm bought 11,205 shares of the investment management company's stock, valued at approximately $157,000. Institutional investors and hedge funds own 13.22% of the company's stock.

Analyst Ratings Changes

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

About Stellus Capital Investment

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.