SCM - Stellus Capital: This 12% Yield Is Too Good To Miss
2024-06-04 08:41:06 ET
Summary
- Stellus Capital Investment Corporation is a solid buy for passive income on the pullback.
- The company is positioned to profit from a higher-for-longer rate environment.
- The stock is selling at a moderate premium to net asset value.
Stellus Capital Investment Corporation ( SCM ) is a solid buy for passive income on the pullback, in my view. The business development company covered its dividend with net investment income in 1Q24 and though the pay-out ratio has risen QoQ, I think that the dividend is reasonably safe, particularly in a moderate inflation environment that incentivizes the central bank to keep interest rates steady at the present level....
Stellus Capital: This 12% Yield Is Too Good To Miss