Stellus Capital Investment Corporation (NYSE:SCM) to Issue $0.08 Monthly Dividend

Key Points

• Stellus Capital Investment declared a monthly dividend of $0.0833 per share, payable on October 15 to shareholders of record on September 30. That works out to an annualized yield of about 11.9%.
• The company’s dividend appears stretched: its payout ratio is 107.9%, and analysts expect it may not fully cover its annual dividend with projected earnings next year.
• SCM reported quarterly EPS of $0.27, matching estimates, but revenue came in below expectations. The stock recently traded at $8.42, well below its 52-week high of $15.39.

Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report) announced a monthly dividend on Thursday, July 16th. Investors of record on Wednesday, September 30th will be given a dividend of 0.0833 per share by the investment management company on Thursday, October 15th. This represents a c) dividend on an annualized basis and a yield of 11.9%. The ex-dividend date of this dividend is Wednesday, September 30th.

Stellus Capital Investment has raised its dividend by an average of 0.1%per year over the last three years. Stellus Capital Investment has a dividend payout ratio of 107.9% meaning 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 $1.03 per share next year, which means the company may not be able to cover its $1.36 annual dividend with an expected future payout ratio of 132.0%.

Stellus Capital Investment Stock Performance

Shares of SCM stock opened at $8.42 on Friday. Stellus Capital Investment has a one year low of $7.78 and a one year high of $15.39. The company has a debt-to-equity ratio of 1.05, a quick ratio of 0.04 and a current ratio of 0.04. The company has a 50 day moving average price of $8.74 and a 200 day moving average price of $10.09. The firm has a market capitalization of $243.76 million, a price-to-earnings ratio of 10.27 and a beta of 0.64.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last posted its quarterly earnings results on Monday, May 11th. The investment management company reported $0.27 earnings per share for the quarter, hitting analysts' consensus estimates of $0.27. The company had revenue of $17.45 million for the quarter, compared to the consensus estimate of $24.80 million. Stellus Capital Investment had a net margin of 23.59% and a return on equity of 9.69%. Sell-side analysts anticipate that Stellus Capital Investment will post 1.06 EPS for the current 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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