Stellus Capital Investment Corporation (SCM) — Dividend Yield, NAV & Valuation Analysis
SCM · NYSE
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Overview
Stellus Capital Investment Corporation is an externally managed BDC advised by Stellus Capital Management, providing senior secured first lien and mezzanine debt to U.S. middle-market companies. SCM targets borrowers with EBITDA between $3 million and $20 million in defensive sectors such as business services, healthcare, and manufacturing. The portfolio emphasizes floating-rate interest structures and disciplined credit underwriting to preserve capital.
Key Metrics
| Metric | Value |
|---|---|
| 1-Year Total Return | 8.2% |
| 3-Year Total Return | 21.2% |
| 5-Year Total Return | 34.2% |
| Expense Ratio | 9.5% |
| Leverage Ratio | 1.2x |
| Portfolio Companies | 80 |
| Total Assets | $0.6B |
Discount / Premium to NAV
| Stock Price | $8.4 |
| NAV per Share | $13.9 |
| Premium / (Discount) to NAV | -39.6% |
| Implied per-share NAV gap | $5.5 |
The premium / discount to NAV compares the current stock price to the per-share net asset value of Stellus Capital Investment Corporation's investment portfolio. A negative reading (a discount) means the market is pricing SCM below the value of its underlying assets and is one of the most-watched valuation metrics for any BDC. A positive reading (a premium) means the market is paying a premium over the stated NAV, often reflecting confidence in future dividend coverage and portfolio credit quality. Stellus Capital Investment Corporation currently trades at a -39.6% discount to NAV.
Investment Strategy
Stellus Capital Investment Corporation focuses on senior secured loans, mezzanine debt in the business services, healthcare, manufacturing, education sectors. The company targets lower middle-market companies and maintains a portfolio of 80 investments totaling $0.6B in assets.
Management
CEO: Robert T. Ladd | Employees: 25
Suitability
SCM is suitable for income-focused investors seeking monthly dividend income with a 16.2% yield. The BDC's focus on senior secured loans provides portfolio characteristics. Investors should consider their risk tolerance and investment objectives before investing.