Stellus Capital Investment Corporation (NYSE:SCM) Plans Monthly Dividend of $0.13

Key Points

• Stellus Capital Investment Corporation announced a monthly dividend of $0.13, with a payout date of December 15th for shareholders of record on November 28th, reflecting an annualized yield of 13.2%.
• The company has a high dividend payout ratio of 127%, indicating it is relying on its balance sheet to cover dividend payments, which may not be sustainable given projected earnings.
• As of the latest trading session, Stellus Capital Investment's shares have traded down 1.2%, with a current price of $12.14 and a market cap of approximately $345 million.

Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report) declared a monthly dividend on Wednesday, October 8th. Shareholders of record on Friday, November 28th will be paid a dividend of 0.1333 per share by the investment management company on Monday, December 15th. This represents a c) annualized dividend and a yield of 13.2%. The ex-dividend date of this dividend is Friday, November 28th.

Stellus Capital Investment has a dividend 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. Equities 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 Trading Down 1.2%

Shares of Stellus Capital Investment stock opened at $12.14 on Thursday. Stellus Capital Investment has a 52-week low of $11.19 and a 52-week high of $15.56. The company has a quick ratio of 0.28, a current ratio of 0.28 and a debt-to-equity ratio of 1.27. The company's 50-day simple moving average is $14.07 and its 200-day simple moving average is $13.77. The firm has a market cap of $345.02 million, a price-to-earnings ratio of 8.37 and a beta of 0.90.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last released its earnings results on Wednesday, August 6th. The investment management company reported $0.35 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.35. Stellus Capital Investment had a return on equity of 11.06% and a net margin of 38.24%.The company had revenue of $25.70 million for the quarter, compared to analysts' expectations of $26.15 million. As a group, equities research analysts anticipate that Stellus Capital Investment will post 1.74 earnings per share for the current year.

Institutional Investors Weigh In On Stellus Capital Investment

A number of large investors have recently bought and sold shares of the stock. Chilton Capital Management LLC grew its holdings in Stellus Capital Investment by 10.6% during the 1st quarter. Chilton Capital Management LLC now owns 8,409 shares of the investment management company's stock valued at $118,000 after buying an additional 809 shares during the last quarter. Geneos Wealth Management Inc. acquired a new stake in shares of Stellus Capital Investment during the second quarter valued at $25,000. CANADA LIFE ASSURANCE Co boosted its stake in shares of Stellus Capital Investment by 8.5% during the second quarter. CANADA LIFE ASSURANCE Co now owns 26,769 shares of the investment management company's stock valued at $373,000 after acquiring an additional 2,101 shares during the last quarter. Ameritas Advisory Services LLC acquired a new stake in shares of Stellus Capital Investment during the second quarter valued at $34,000. Finally, Sunbelt Securities Inc. boosted its stake in shares of Stellus Capital Investment by 10.1% during the first quarter. Sunbelt Securities Inc. now owns 32,803 shares of the investment management company's stock valued at $459,000 after acquiring an additional 3,022 shares during the last quarter. Institutional investors and hedge funds own 13.22% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.