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

Key Points

• Stellus Capital Investment Corporation announced a dividend of $0.13 per share, with an ex-dividend date of August 29th and payment scheduled for September 15th, reflecting a yield of 1,093.0%.
• The company has a dividend payout ratio of 127.0%, suggesting it is relying on its balance sheet to cover dividend payments as earnings may not fully support them.
• Recent stock performance shows Stellus Capital Investment's price fluctuated between a 12-month low of $11.19 and a high of $15.56, with a market capitalization of $412.52 million.

Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report) declared a monthly dividend on Wednesday, July 2nd, investing.com reports. Shareholders of record on Friday, August 29th will be given a dividend of 0.1333 per share by the investment management company on Monday, September 15th. This represents a c) annualized dividend and a dividend yield of 10.9%. The ex-dividend date of this dividend is Friday, August 29th.

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. 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 0.1%

Shares of Stellus Capital Investment stock traded down $0.01 on Thursday, hitting $14.68. The stock had a trading volume of 126,168 shares, compared to its average volume of 164,792. The company has a quick ratio of 0.28, a current ratio of 0.28 and a debt-to-equity ratio of 1.27. Stellus Capital Investment has a one year low of $11.19 and a one year high of $15.56. The stock has a market cap of $417.15 million, a price-to-earnings ratio of 10.12 and a beta of 0.86. The stock's 50-day simple moving average is $14.45 and its two-hundred day simple moving average is $13.95.

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of SCM. Aquatic Capital Management LLC purchased a new stake in Stellus Capital Investment during the 4th quarter valued at $244,000. Northern Trust Corp raised its holdings in Stellus Capital Investment by 30.1% during the 4th quarter. Northern Trust Corp now owns 22,973 shares of the investment management company's stock valued at $316,000 after buying an additional 5,314 shares during the period. Oppenheimer & Co. Inc. raised its holdings in Stellus Capital Investment by 27.7% during the 1st quarter. Oppenheimer & Co. Inc. now owns 15,440 shares of the investment management company's stock valued at $216,000 after buying an additional 3,352 shares during the period. Sunbelt Securities Inc. raised its holdings in Stellus Capital Investment by 10.1% during the 1st quarter. Sunbelt Securities Inc. now owns 32,803 shares of the investment management company's stock valued at $459,000 after buying an additional 3,022 shares during the period. Finally, Sumitomo Mitsui Trust Group Inc. increased its stake in Stellus Capital Investment by 33.7% in the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 84,762 shares of the investment management company's stock worth $1,187,000 after purchasing an additional 21,355 shares during the period. 13.22% of the stock is currently owned by institutional investors.

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.