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

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

Stellus Capital Investment has raised its dividend by an average of 0.1%per year over the last three years. Stellus Capital Investment has a payout ratio of 107.9% 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 should continue to be able to cover its $1.36 annual dividend with an expected future payout ratio of 93.8%.

Stellus Capital Investment Trading Down 3.1%

Shares of SCM stock opened at $8.83 on Friday. Stellus Capital Investment has a 52-week low of $8.43 and a 52-week high of $15.39. The business’s fifty day moving average is $10.86 and its 200 day moving average is $12.00. The company has a debt-to-equity ratio of 1.13, a quick ratio of 0.14 and a current ratio of 0.14. The company has a market capitalization of $255.60 million, a PE ratio of 9.39 and a beta of 0.68.

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 analysts’ consensus estimates of $0.31 by ($0.02). The business had revenue of $23.98 million during the quarter, compared to the consensus estimate of $26.33 million. Stellus Capital Investment had a return on equity of 10.28% and a net margin of 26.48%. On average, equities research analysts anticipate that Stellus Capital Investment will post 1.74 EPS for the current fiscal year.

Insider Buying and Selling at Stellus Capital Investment

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

Institutional Trading of Stellus Capital Investment

Several institutional investors have recently added to or reduced their stakes in the business. Corient Private Wealth LLC grew its stake in shares of Stellus Capital Investment by 2.6% during the fourth quarter. Corient Private Wealth LLC now owns 281,166 shares of the investment management company’s stock valued at $3,565,000 after buying an additional 7,066 shares during the last quarter. Sunbelt Securities Inc. grew its position in Stellus Capital Investment by 5.8% during the 4th quarter. Sunbelt Securities Inc. now owns 154,573 shares of the investment management company’s stock worth $1,960,000 after acquiring an additional 8,440 shares during the last quarter. Virtus Investment Advisers LLC increased its stake in Stellus Capital Investment by 3.0% in the 4th quarter. Virtus Investment Advisers LLC now owns 60,048 shares of the investment management company’s stock worth $761,000 after purchasing an additional 1,754 shares during the period. Kestra Advisory Services LLC bought a new stake in Stellus Capital Investment in the fourth quarter valued at approximately $62,000. Finally, Inspire Advisors LLC lifted its position in Stellus Capital Investment by 1.4% in the fourth quarter. Inspire Advisors LLC now owns 107,787 shares of the investment management company’s stock valued at $1,367,000 after purchasing an additional 1,525 shares during the last quarter. 13.22% of the stock is currently owned by hedge funds and other institutional investors.

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.