Stellus Capital Investment Corporation (NYSE:SCM) Declares $0.11 Monthly Dividend

Stellus Capital Investment Corporation (NYSE:SCM) announced a monthly dividend on Friday, January 16th. Stockholders of record on Tuesday, March 31st will be paid a dividend of 0.1133 per share by the investment management company on Wednesday, April 15th. This represents a c) dividend on an annualized basis and a dividend yield of 15.4%. The ex-dividend date is Tuesday, March 31st.

Stellus Capital Investment has increased its dividend by an average of 0.1%annually 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. Equities analysts expect Stellus Capital Investment to earn $1.45 per share next year, which means the company should continue to be able to cover its $1.36 annual dividend with an expected future payout ratio of 93.8%.

Stellus Capital Investment Price Performance

NYSE SCM opened at $8.83 on Friday. Stellus Capital Investment has a 1 year low of $8.43 and a 1 year high of $15.39. The company has a fifty day simple moving average of $10.86 and a 200 day simple moving average of $12.00. The company has a current ratio of 0.14, a quick ratio of 0.14 and a debt-to-equity ratio of 1.13. The company has a market cap of $255.60 million, a P/E ratio of 9.39 and a beta of 0.68.

Stellus Capital Investment (NYSE:SCM) last released its earnings results on Wednesday, March 11th. The investment management company reported $0.29 earnings per share for the quarter, missing analysts’ consensus estimates of $0.31 by ($0.02). The firm had revenue of $23.98 million for the quarter, compared to analyst estimates of $26.33 million. Stellus Capital Investment had a return on equity of 10.28% and a net margin of 26.48%. On average, sell-side analysts predict that Stellus Capital Investment will post 1.74 EPS for the current year.

Analysts Set New Price Targets

A number of research firms have issued reports on SCM. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Stellus Capital Investment in a report on Monday, December 29th. Keefe, Bruyette & Woods dropped their target price on shares of Stellus Capital Investment from $13.00 to $9.00 and set a “market perform” rating on the stock in a research report on Monday, March 16th. Three research analysts have rated the stock with a Hold rating, According to MarketBeat.com, Stellus Capital Investment has an average rating of “Hold” and a consensus target price of $9.00.

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.