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SCM's 16.5% Yield Looks Tempting, But the Dividend Was Just Slashed

SCM
Company FundamentalsPrivate Markets & VentureCredit & Bond MarketsBanking & Liquidity

Stellus Capital Investment Corporation (NYSE: SCM) is a business development company that provides debt and equity financing to private middle-market businesses and earns income primarily from interest on senior secured loans and subordinated debt. The company is structured as a credit-focused BDC with cash-flow exposure concentrated in senior secured and subordinated loan instruments to middle-market borrowers.

Analysis

Stellus Capital Investment Corporation (NYSE: SCM) is a business development company that provides debt and equity financing to private middle-market businesses and earns income primarily from interest on senior secured loans and subordinated debt. The company is structured as a credit-focused BDC with cash-flow exposure concentrated in senior secured and subordinated loan instruments to middle-market borrowers.

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