Stellus Capital Investment Corporation (SCM) to Issue Monthly Dividend of $0.08 on October 15th

Stellus Capital Investment Corporation (NYSE:SCM) announced a monthly dividend on Thursday, July 16th. Shareholders of record on Wednesday, September 30th will be paid a dividend of 0.0833 per share by the investment management company on Thursday, October 15th. This represents a c) annualized dividend and a yield of 13.2%. The ex-dividend date is Wednesday, September 30th.

Stellus Capital Investment has increased its dividend by an average of 0.1%per year over the last three years. Stellus Capital Investment has a 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 opened at $7.58 on Friday. The firm has a market cap of $219.33 million, a P/E ratio of 9.24 and a beta of 0.64. Stellus Capital Investment has a twelve month low of $7.56 and a twelve month high of $15.29. 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 firm’s 50 day moving average price is $8.69 and its two-hundred day moving average price is $10.07.

Stellus Capital Investment (NYSE:SCM) last issued its quarterly earnings data on Monday, May 11th. The investment management company reported $0.27 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.27. Stellus Capital Investment had a net margin of 23.59% and a return on equity of 9.69%. The company had revenue of $17.45 million during the quarter, compared to the consensus estimate of $24.80 million. On average, analysts forecast that Stellus Capital Investment will post 1.06 EPS for the current fiscal year.

Insider Buying and Selling at Stellus Capital Investment

In related news, Director J Tim Arnoult acquired 9,000 shares of the firm’s stock in a transaction dated Tuesday, May 19th. The stock was bought at an average price of $9.05 per share, for a total transaction of $81,450.00. Following the acquisition, the director directly owned 50,869 shares of the company’s stock, valued at approximately $460,364.45. The trade was a 21.50% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. In the last three months, insiders bought 10,700 shares of company stock valued at $96,523. 4.24% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Geneos Wealth Management Inc. bought a new position in Stellus Capital Investment in the second quarter valued at approximately $25,000. Laurel Wealth Advisors LLC acquired a new position in shares of Stellus Capital Investment during the 4th quarter worth approximately $26,000. JPMorgan Chase & Co. bought a new stake in shares of Stellus Capital Investment during the 3rd quarter worth approximately $28,000. BNP Paribas Financial Markets acquired a new stake in shares of Stellus Capital Investment in the 2nd quarter valued at approximately $60,000. Finally, Kestra Advisory Services LLC acquired a new position in Stellus Capital Investment during the fourth quarter worth $62,000. 13.22% of the stock is owned by institutional investors and hedge funds.

About Stellus Capital Investment

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.