Stellus Capital Investment Corporation Plans Monthly Dividend of $0.08 (NYSE:SCM)

Key Points

• Stellus Capital Investment declared a monthly dividend of $0.0833 per share, payable on August 14 to shareholders of record as of July 31. The dividend implies an annualized yield of about 11.9%.
• The company’s dividend appears not fully covered by earnings, with a payout ratio of 107.9%; analysts also expect future earnings may not cover the annual dividend. Estimated forward payout ratio is 132.0% based on next year’s projected EPS.
• SCM recently reported Q1 earnings of $0.27 per share, matching analyst expectations, but revenue of $17.45 million came in below forecasts. The stock opened at $8.42 and has traded well below its 200-day average of $10.09.

Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report) declared a monthly dividend on Thursday, July 16th. Investors of record on Friday, July 31st will be paid a dividend of 0.0833 per share by the investment management company on Friday, August 14th. This represents a c) dividend on an annualized basis and a yield of 11.9%. The ex-dividend date is Friday, July 31st.

Stellus Capital Investment has raised its dividend payment by an average of 0.1%per year over the last three years. Stellus Capital Investment has a dividend payout ratio of 107.9% indicating that 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 $1.03 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

NYSE SCM opened at $8.42 on Friday. The company has a current ratio of 0.04, a quick ratio of 0.04 and a debt-to-equity ratio of 1.05. The firm's fifty day moving average price is $8.74 and its two-hundred day moving average price is $10.09. Stellus Capital Investment has a 1 year low of $7.78 and a 1 year high of $15.39. The firm has a market capitalization of $243.76 million, a P/E ratio of 10.27 and a beta of 0.64.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last announced its quarterly earnings results on Monday, May 11th. The investment management company reported $0.27 EPS for the quarter, meeting analysts' consensus estimates of $0.27. The firm had revenue of $17.45 million during the quarter, compared to analysts' expectations of $24.80 million. Stellus Capital Investment had a net margin of 23.59% and a return on equity of 9.69%. As a group, research 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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