Stellus Capital Investment Corporation Plans Oct 25 Dividend of $0.13 (NYSE:SCM)

Key Points

• Stellus Capital Investment Corporation announced a dividend of $0.13 per share, payable on November 14th to shareholders of record by October 31st.
• The company has a high dividend payout ratio of 127.0%, indicating reliance on its balance sheet rather than earnings to maintain dividend payments.
• Despite a recent earnings report meeting expectations, Stellus Capital's stock has been trading down and has a current market cap of $345.02 million.

Stellus Capital Investment Corporation (NYSE:SCM - Get Free Report) declared a oct 25 dividend on Wednesday, October 8th, RTT News reports. Shareholders of record on Friday, October 31st will be given a dividend of 0.1333 per share by the investment management company on Friday, November 14th.

Stellus Capital Investment has a dividend payout ratio of 127.0% 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 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 NYSE SCM traded down $0.15 during midday trading on Wednesday, reaching $12.14. The stock had a trading volume of 259,456 shares, compared to its average volume of 240,888. The company has a debt-to-equity ratio of 1.27, a quick ratio of 0.28 and a current ratio of 0.28. Stellus Capital Investment has a twelve month low of $11.19 and a twelve month high of $15.56. The company's 50 day moving average price is $14.07 and its 200 day moving average price 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 announced its earnings results on Wednesday, August 6th. The investment management company reported $0.35 EPS for the quarter, meeting the consensus estimate of $0.35. Stellus Capital Investment had a net margin of 38.24% and a return on equity of 11.06%. The company had revenue of $25.70 million during the quarter, compared to the consensus estimate of $26.15 million. As a group, sell-side analysts expect that Stellus Capital Investment will post 1.74 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Corient Private Wealth LLC boosted its position in Stellus Capital Investment by 138.9% during the 2nd quarter. Corient Private Wealth LLC now owns 507,526 shares of the investment management company's stock valued at $7,075,000 after buying an additional 295,068 shares during the period. Ethos Financial Group LLC bought a new position in Stellus Capital Investment during the 1st quarter worth about $2,694,000. Muzinich & Co. Inc. raised its position in shares of Stellus Capital Investment by 65.3% in the 2nd quarter. Muzinich & Co. Inc. now owns 144,005 shares of the investment management company's stock valued at $2,007,000 after purchasing an additional 56,885 shares during the last quarter. Inspire Advisors LLC grew its stake in shares of Stellus Capital Investment by 155.5% during the 2nd quarter. Inspire Advisors LLC now owns 62,530 shares of the investment management company's stock worth $872,000 after purchasing an additional 38,059 shares during the period. Finally, Laurel Wealth Advisors LLC acquired a new stake in Stellus Capital Investment in the 2nd quarter valued at $405,000. 13.22% of the stock is currently owned by hedge funds and other institutional investors.

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.

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