Stellus Capital Investment Corporation Announces Transition of Dividend from Quarterly to Monthly and Declares First Quarter 2021 Regular Dividend of $0.25 Per Share, in the Aggregate

Rhea-AI Summary

Stellus Capital Investment Corporation (NYSE: SCM) has announced a shift from quarterly to monthly dividend payments starting January 31, 2021. The Board of Directors declared a monthly dividend of $0.0833 per share for January, February, and March 2021, totaling $0.25 per share for the first quarter. CEO Robert T. Ladd expressed confidence in the company's strong liquidity and stable asset quality, believing the impact of COVID-19 has significantly diminished.

Positive

• Transition to monthly dividend payments enhances shareholder value and cash flow predictability.
• Declared a total dividend of $0.25 per share for the first quarter, indicating a commitment to returning capital to shareholders.

Negative

• None.

HOUSTON, Jan. 19, 2021 /PRNewswire/ -- Stellus Capital Investment Corporation (the "Company") (NYSE: SCM) announced today that it will change its dividend payment schedule from quarterly to monthly beginning with the month ended January 31, 2021.  Additionally, the Company announced that its Board of Directors has declared a monthly dividend of $0.0833 per share for each of the months of January, February and March which, in the aggregate, is $0.25 per share for the first quarter.

"I am pleased to announce that we are changing the frequency of our dividend payments from quarterly to monthly. This decision is based on the Company's strong liquidity, stable asset quality and belief that the impact of the COVID-19 pandemic is materially behind it," said Robert T. Ladd, Chief Executive Officer of Stellus Capital Investment Corporation.

Summary of First Quarter 2021 Regular Monthly Dividends

Declared	Ex-Dividend Date	Record Date	Payment Date	Amount per Share
1/15/21	1/28/21	1/29/21	2/16/21	$0.0833
1/15/21	2/25/21	2/26/21	3/15/21	$0.0833
1/15/21	3/30/21	3/31/21	4/15/21	$0.0833

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 Investors" 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 the new dividend payment schedule for Stellus Capital Investment Corporation?

Stellus Capital Investment Corporation is changing its dividend payment schedule from quarterly to monthly starting January 31, 2021.

What is the amount of the dividend declared for the first quarter 2021 by SCM?

The company declared a monthly dividend of $0.0833 per share for January, February, and March 2021, totaling $0.25 per share for the first quarter.

When is the payment date for the first quarter dividends of SCM?

The payment dates for the dividends are February 16, March 15, and April 15, 2021.

How does the transition to monthly dividends impact SCM shareholders?

The transition to monthly dividends provides shareholders with more frequent income, improving cash flow timing and predictability.

Is the dividend declared by SCM sustainable?

The company emphasizes strong liquidity and stable asset quality, suggesting confidence in the sustainability of its dividend payments.