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

Stellus Capital Investment Corporation (NYSE:SCM) declared a monthly dividend on Wednesday, April 9th, Wall Street Journal reports. Stockholders of record on Monday, June 30th will be paid a dividend of 0.1333 per share by the investment management company on Tuesday, July 15th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 11.43%. The ex-dividend date of this dividend is Monday, June 30th.

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. Equities research 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 Price Performance

SCM opened at $14.00 on Friday. The stock has a market cap of $397.82 million, a price-to-earnings ratio of 9.72 and a beta of 0.87. Stellus Capital Investment has a 1 year low of $11.19 and a 1 year high of $15.56. The company has a current ratio of 0.08, a quick ratio of 0.08 and a debt-to-equity ratio of 1.09. The stock has a fifty day moving average price of $13.35 and a 200 day moving average price of $13.80.

Stellus Capital Investment (NYSE:SCM) last released its quarterly earnings data on Monday, May 12th. The investment management company reported $0.37 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.37. The firm had revenue of $24.95 million during the quarter, compared to analysts’ expectations of $26.76 million. Stellus Capital Investment had a return on equity of 11.93% and a net margin of 36.35%. Analysts forecast that Stellus Capital Investment will post 1.74 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on SCM. Wall Street Zen raised Stellus Capital Investment from a “sell” rating to a “hold” rating in a research report on Friday. Keefe, Bruyette & Woods reduced their price objective on Stellus Capital Investment from $13.50 to $13.00 and set a “market perform” rating for the company in a research report on Tuesday, April 8th.

Institutional Trading of Stellus Capital Investment

An institutional investor recently raised its position in Stellus Capital Investment stock. Royal Bank of Canada grew its stake in Stellus Capital Investment Corporation (NYSE:SCM) by 15.8% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 27,882 shares of the investment management company’s stock after buying an additional 3,808 shares during the period. Royal Bank of Canada owned approximately 0.10% of Stellus Capital Investment worth $390,000 as of its most recent SEC filing. 13.22% of the stock is currently owned by hedge funds and other 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.