Stellus Capital reports Q1 core NII 37c, consensus 37c
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 12 2025
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Financial Performance: Stellus reported a U.S. GAAP net investment income of $0.35 per share and core net investment income of $0.37 per share for the quarter ending March 31, 2025, with a total portfolio value of $991 million.
Investor Returns: The company raised over $9 million in equity during the quarter and has distributed a total of $295 million to investors since its inception, amounting to $16.95 per share.
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Analyst Views on SCM
Wall Street analysts forecast SCM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SCM is 13.00 USD with a low forecast of 13.00 USD and a high forecast of 13.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 12.960
Low
13.00
Averages
13.00
High
13.00
Current: 12.960
Low
13.00
Averages
13.00
High
13.00
About SCM
Stellus Capital Investment Corporation is an externally managed, closed-end, non-diversified management investment company that operates as a business development company. Its investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments in middle-market companies. It seeks to achieve its investment objective by originating and investing primarily in private United States middle-market companies (typically those with $5.0 million to $50.0 million of earnings before interest, taxes, depreciation and amortization (EBITDA)) through first lien, second lien, unitranche and unsecured debt financing, with corresponding equity co-investments. It focuses on a variety of industry sectors, including business services, general industrial, government services, healthcare, software, specialty finance and others. Its investment adviser is Stellus Capital Management, LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Stellus Capital (SCM) Declares $0.1133 Monthly Dividend, 15% Decrease
- Dividend Adjustment: Stellus Capital has declared a monthly dividend of $0.1133 per share, representing a 15% decrease from the previous $0.1333, indicating a cautious approach in profit distribution that may affect investor confidence.
- Yield Situation: The current dividend yield stands at 10.27%, which, despite the decrease, continues to attract investors seeking stable cash flow, demonstrating the company's ongoing appeal in the high-yield investment space.
- Future Dividend Schedule: The company plans to pay dividends on February 13, March 13, and April 15, 2025, ensuring shareholders hold shares by specific dates to receive payouts, which enhances shareholder stability.
- Financial Outlook: Stellus Capital expects $5 million in equity realizations in Q4 2025, indicating active repayment efforts that may support future dividend distributions.
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Stellus Capital Declares $0.34 Monthly Dividend for Q1 2026
- Dividend Declaration: Stellus Capital Investment Corporation's Board has declared a monthly dividend of $0.1133 for Q1 2026, totaling $0.34 per share, reflecting the company's strategic adjustment in a lower interest rate environment.
- Payment Schedule: This dividend will be paid to shareholders of record in February, March, and April 2026, ensuring a stable cash flow for shareholders in the upcoming months.
- Investment Strategy: Stellus Capital focuses on maximizing total returns for shareholders by primarily investing in private middle-market companies with EBITDA between $5 million and $50 million through first lien, second lien, and mezzanine debt financing along with corresponding equity investments.
- Market Environment Impact: CEO Robert T. Ladd indicated that the reduction in dividends reflects the current low-interest-rate environment, demonstrating the company's cautious approach to financial management in response to market changes.
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