Stellus Capital Investment Corporation Announces $0.40 First Quarter 2025 Regular Dividend, Payable Monthly in Increments of $0.1333 in February, March, and April 2025

Rhea-AI Summary

Stellus Capital Investment (NYSE: SCM) has declared its first quarter 2025 dividend schedule. The company's Board of Directors approved a total regular dividend of $0.40 per share for Q1 2025, to be paid in three monthly installments of $0.1333 per share.

The dividends will be distributed according to the following schedule: February 14, 2025 (record date January 31); March 14, 2025 (record date February 29); and April 15, 2025 (record date March 29).

Positive

• Maintained consistent quarterly dividend of $0.40 per share
• Regular monthly dividend payments provide steady income stream for shareholders

Negative

• None.

Insights

Financial Analyst

The quarterly dividend announcement of $0.40 per share, distributed monthly at $0.1333, represents a significant income opportunity for investors, translating to an approximate annual yield of 11.5% based on current market price. This Business Development Company (BDC) maintains its commitment to regular shareholder distributions, which is particularly noteworthy in the current high-interest-rate environment.

The monthly distribution schedule, rather than quarterly payments, offers investors more frequent income streams and better cash flow management opportunities. The maintenance of the dividend level signals management's confidence in the company's ability to generate consistent net investment income from its middle-market lending portfolio.

Looking at the broader context, Stellus Capital's ability to sustain this dividend level while maintaining investment grade credit quality in its portfolio demonstrates resilience in their business model. The predictable payment schedule extending through Q1 2025 provides visibility for income-focused investors in an uncertain market environment.

Market Research Analyst

This dividend declaration carries strategic timing implications for both institutional and retail investors. The ex-dividend dates falling on the last trading day of each month create a clear framework for portfolio positioning. The $0.40 quarterly dividend commitment suggests strong underlying portfolio performance and stable cash flows from the company's lending activities.

The dividend yield positions SCM competitively within the BDC sector, where income-seeking investors often compare yields across multiple investment options. The consistent monthly distribution approach helps reduce share price volatility around larger quarterly dividend payments and may contribute to more stable trading patterns.

For retail investors, it's worth noting that BDCs like Stellus are required to distribute at least 90% of their taxable income to shareholders, making them attractive for income-focused portfolios. The maintenance of this dividend level indicates management's positive outlook on the company's ability to maintain its earnings power through its middle-market lending strategy.

HOUSTON, Jan. 9, 2025 /PRNewswire/ -- Stellus Capital Investment Corporation (the "Company") (NYSE: SCM) announced that its Board of Directors has declared a monthly dividend of $0.1333 for each of January, February, and March, totaling $0.40 per share in the aggregate for the first quarter of 2025. The regular dividend of $0.40 per share will be paid to shareholders of record in February, March, and April 2025.

Summary of First Quarter 2025 Regular Monthly Dividends

Declared	Ex-Dividend Date	Record Date	Payment Date	Amount per Share
1/9/2025	1/31/2025	1/31/2025	2/14/2025	$0.1333
1/9/2025	2/28/2025	2/29/2025	3/14/2025	$0.1333
1/9/2025	3/31/2025	3/29/2025	4/15/2025	$0.1333

 

About Stellus Capital Investment Corporation

The Company is an externally-managed, closed-end, non-diversified investment management company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) through first lien, second lien, unitranche and mezzanine debt financing, and corresponding equity investments. The Company's investment activities are managed by its investment adviser, Stellus Capital Management. To learn more about Stellus Capital Investment Corporation, visit www.stelluscapital.com under the "Public (SCIC)" link.

FORWARD-LOOKING STATEMENTS

Statements included herein may contain "forward-looking statements" which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission including the final prospectus that will be filed with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Contacts
Stellus Capital Investment Corporation
W. Todd Huskinson, (713) 292-5414
Chief Financial Officer
thuskinson@stelluscapital.com

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SOURCE Stellus Capital Investment Corporation

FAQ

What is Stellus Capital's (SCM) Q1 2025 dividend amount?

Stellus Capital's total dividend for Q1 2025 is $0.40 per share, paid in three monthly installments of $0.1333.

When are SCM's Q1 2025 dividend payment dates?

SCM's Q1 2025 dividends will be paid on February 14, March 14, and April 15, 2025.

What are the record dates for SCM's Q1 2025 dividends?

The record dates are January 31, February 29, and March 29, 2025.

How frequently does Stellus Capital (SCM) pay dividends?

Stellus Capital pays dividends monthly, with three payments per quarter.