Stellus Capital Investment Corporation (SCM) to Issue Monthly Dividend of $0.11 on July 15th

Stellus Capital Investment Corporation (NYSE:SCM) declared a monthly dividend on Tuesday, April 14th. Stockholders of record on Tuesday, June 30th will be paid a dividend of 0.1133 per share by the investment management company on Wednesday, July 15th. This represents a c) annualized dividend and a dividend yield of 13.7%. The ex-dividend date is Tuesday, June 30th.

Stellus Capital Investment has raised its dividend payment 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. Equities research 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 Stock Performance

Shares of SCM stock opened at $9.95 on Thursday. Stellus Capital Investment has a 12-month low of $8.43 and a 12-month high of $15.39. The company has a debt-to-equity ratio of 1.13, a current ratio of 0.14 and a quick ratio of 0.14. The firm has a market capitalization of $288.05 million, a price-to-earnings ratio of 10.59 and a beta of 0.67. The business has a 50 day simple moving average of $9.97 and a 200 day simple moving average of $11.59.

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

Insider Buying and Selling

In other news, Director Bruce R. Bilger purchased 45,490 shares of the stock in a transaction dated Friday, March 13th. The shares were bought at an average cost of $8.74 per share, for a total transaction of $397,582.60. Following the transaction, the director owned 228,055 shares in the company, valued at $1,993,200.70. This trade represents a 24.92% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Robert T. Ladd purchased 35,000 shares of the stock in a transaction dated Friday, March 13th. The shares were purchased at an average price of $8.70 per share, for a total transaction of $304,500.00. Following the completion of the transaction, the chief executive officer owned 667,935 shares in the company, valued at $5,811,034.50. This trade represents a 5.53% increase in their position. The SEC filing for this purchase provides additional information. Insiders have bought a total of 87,890 shares of company stock valued at $766,551 over the last quarter. Corporate insiders own 3.99% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of SCM. Royal Bank of Canada grew its holdings in Stellus Capital Investment by 15.8% during the first quarter. Royal Bank of Canada now owns 27,882 shares of the investment management company’s stock worth $390,000 after acquiring an additional 3,808 shares during the period. Jane Street Group LLC acquired a new stake in Stellus Capital Investment in the 1st quarter valued at about $157,000. Brevan Howard Capital Management LP acquired a new stake in Stellus Capital Investment in the 2nd quarter valued at about $154,000. BNP Paribas Financial Markets bought a new position in shares of Stellus Capital Investment during the 2nd quarter valued at about $60,000. Finally, Group One Trading LLC grew its stake in shares of Stellus Capital Investment by 112.3% in the 2nd quarter. Group One Trading LLC now owns 11,401 shares of the investment management company’s stock worth $159,000 after purchasing an additional 6,030 shares during the last quarter. 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.