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

Stellus Capital Investment Co. (NYSE:SCM) announced a monthly dividend on Wednesday, April 9th, Wall Street Journal reports. Shareholders of record on Monday, June 30th will be paid a dividend of 0.1333 per share by the investment management company on Tuesday, July 15th. This represents a $1.60 annualized dividend and a yield of 13.28%. The ex-dividend date is Monday, June 30th.

Stellus Capital Investment has increased its dividend by an average of 16.6% annually over the last three years. Stellus Capital Investment has a dividend 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. 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 Stock Down 3.8 %

Shares of NYSE:SCM opened at $12.05 on Friday. The company has a 50 day moving average of $14.24 and a 200-day moving average of $14.04. Stellus Capital Investment has a one year low of $11.19 and a one year high of $15.56. The stock has a market cap of $331.48 million, a price-to-earnings ratio of 6.15 and a beta of 0.84. 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 (NYSE:SCM) last issued 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 net margin of 45.39% and a return on equity of 13.49%. The business had revenue of $25.62 million for the quarter, compared to the consensus estimate of $26.60 million. On average, sell-side analysts forecast that Stellus Capital Investment will post 1.74 earnings per share for the current year.

Wall Street Analyst Weigh In

SCM has been the subject of a number of recent analyst reports. Keefe, Bruyette & Woods lowered their price target on Stellus Capital Investment from $13.50 to $13.00 and set a “market perform” rating for the company in a research note on Tuesday. StockNews.com lowered shares of Stellus Capital Investment from a “hold” rating to a “sell” rating in a report on Thursday, March 27th.

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.