SCM - Stellus Capital: Fully Covered 12.5% Dividend Yield With NAV Angst
2024-03-06 15:05:45 ET
Summary
- Stellus Capital is paying out a 12.5% dividend yield that's 114% covered by fiscal 2023 fourth-quarter net investment income.
- The BDC saw its NAV per share grow by 7 cents sequentially during the fourth quarter, with the commons currently swapping hands for a small discount to NAV.
- Loans on non-accrual status remain low at 1.3% of SCM's total loan portfolio at fair value.
Stellus Capital Investment's ( SCM ) stock price is meandering, it's flat year-to-date but is down 15% over the last year. The business development company last declared a monthly cash dividend of $0.1333 per share , kept unchanged from the prior month and $1.60 per share annualized for a 12.5% dividend yield. The safety of the monthly distributions has been a point of contention against net asset value that had been dipping for a few quarters, up until SCM's fiscal 2023 fourth quarter. This came in at $13.26 per share , up 7 cents sequentially but down from $14.02 per share in SCM's year-ago period....
Stellus Capital: Fully Covered 12.5% Dividend Yield With NAV Angst