Stellus Capital Investment Co. (NYSE:SCM) Declares Monthly Dividend of $0.13

Stellus Capital Investment Co. (NYSE:SCM - Get Free Report) announced a monthly dividend on Wednesday, April 9th, Wall Street Journal reports. Investors of record on Monday, June 30th will be given 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 yield of 13.00%. The ex-dividend date is Monday, June 30th.

Stellus Capital Investment has raised its dividend payment by an average of 16.6% per year over the last three years. Stellus Capital Investment has a payout ratio of 112.7% 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 Trading Up 0.5 %

Shares of NYSE SCM traded up $0.06 during midday trading on Monday, reaching $12.30. 96,847 shares of the stock were exchanged, compared to its average volume of 164,879. The stock has a 50 day moving average price of $14.19 and a 200-day moving average price of $14.03. The company has a current ratio of 0.29, a quick ratio of 0.29 and a debt-to-equity ratio of 1.15. The company has a market capitalization of $338.50 million, a P/E ratio of 6.28 and a beta of 0.84. Stellus Capital Investment has a 52-week low of $11.19 and a 52-week high of $15.56.

Stellus Capital Investment (NYSE:SCM - Get Free Report) last released its earnings results on Tuesday, March 4th. The investment management company reported $0.37 EPS for the quarter, missing the consensus estimate of $0.41 by ($0.04). Stellus Capital Investment had a return on equity of 13.49% and a net margin of 45.39%. The firm had revenue of $25.62 million during the quarter, compared to analysts' expectations of $26.60 million. Equities research analysts expect that Stellus Capital Investment will post 1.74 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on SCM shares. StockNews.com downgraded Stellus Capital Investment from a "hold" rating to a "sell" rating in a research report on Thursday, March 27th. Keefe, Bruyette & Woods decreased their target price on shares of Stellus Capital Investment from $13.50 to $13.00 and set a "market perform" rating on the stock in a research report on Tuesday, April 8th.

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.