Stellus Capital Investment Co. (NYSE:SCM) to Issue $0.13 Dividend

Stellus Capital Investment Co. (NYSE:SCM) declared a dividend on Thursday, January 30th,investing.com reports. Stockholders of record on Monday, February 3rd will be paid a dividend of 0.1333 per share by the investment management company on Friday, February 14th. This represents a dividend yield of 10.74%. The ex-dividend date of this dividend is Friday, January 31st.

Stellus Capital Investment has raised its dividend payment by an average of 17.0% annually over the last three years. Stellus Capital Investment has a payout ratio of 112.7% indicating that 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 $1.45 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 Stock Performance

SCM stock traded up $0.14 on Thursday, reaching $14.91. 153,157 shares of the company were exchanged, compared to its average volume of 133,713. The stock’s fifty day moving average price is $13.89 and its 200 day moving average price is $13.89. The firm has a market capitalization of $403.44 million, a PE ratio of 7.61 and a beta of 1.12. The company has a debt-to-equity ratio of 1.15, a current ratio of 0.29 and a quick ratio of 0.29. Stellus Capital Investment has a 12 month low of $12.48 and a 12 month high of $15.05.

Stellus Capital Investment (NYSE:SCM) last issued its quarterly earnings results on Thursday, November 7th. The investment management company reported $0.40 earnings per share for the quarter, missing analysts’ consensus estimates of $0.46 by ($0.06). Stellus Capital Investment had a net margin of 45.39% and a return on equity of 13.49%. The company had revenue of $26.50 million during the quarter, compared to analyst estimates of $27.36 million. During the same period in the prior year, the business earned $0.49 EPS. On average, research analysts anticipate that Stellus Capital Investment will post 1.74 EPS for the current fiscal year.

About Stellus Capital Investment

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.