Stellus Capital Investment Co. (SCM) To Go Ex-Dividend on June 30th

Stellus Capital Investment Co. (NYSE:SCM) declared a monthly dividend on Tuesday, April 8th, 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 12.87%. The ex-dividend date is Monday, June 30th.

Stellus Capital Investment has raised its dividend by an average of 16.6% annually 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. 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 Up 6.3 %

Shares of Stellus Capital Investment stock opened at $12.43 on Thursday. The stock has a market capitalization of $341.94 million, a price-to-earnings ratio of 6.34 and a beta of 0.84. The company’s 50 day moving average price is $14.29 and its 200-day moving average price is $14.05. Stellus Capital Investment has a 52-week low of $11.19 and a 52-week high of $15.56. The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.29 and a current ratio of 0.29.

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

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. StockNews.com cut shares of Stellus Capital Investment from a “hold” rating to a “sell” rating in a report on Thursday, March 27th. Keefe, Bruyette & Woods cut their price target on Stellus Capital Investment from $13.50 to $13.00 and set a “market perform” rating on the stock in a report on Tuesday.

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.