Stellus Capital Investment Corporation
SCMFinancial Services · Stock · monthly payer
Forward Yield
16.23%
Annual Dividend
$1.33
Payout Ratio
144%
5-Yr Growth
-7.0%
Ex-Date
Sep 30, 2026
Frequency
Monthly
Summary
As of September 2026, Stellus Capital Investment Corporation (SCM) yields 16.23% ($1.33 per share annually), with a blended fair-value estimate of $15.49 — +76% upside, so it screens as undervalued. Dividend safety grade: D (41/100).
Is SCM a good dividend stock?
Higher riskStellus Capital Investment Corporation (SCM) pays a monthly dividend yielding 16.23% ($1.33/yr), with 0 years of growth and a dividend-safety grade of D. Treat the dividend with caution — recent cuts, a stretched payout or a falling price raise the risk.
Advantages
Risks
- Cut its dividend in 2021
- Elevated payout ratio (144%)
- Dividend has been shrinking, not growing
- Very high yield can signal elevated risk
- Share price is down over the past 5 years
- Below-average dividend safety score
Key Data
- Dividend Yield
- 16.23%
- Payout Ratio
- 144%
- Annual Dividend
- $1.33
- 5-Yr Avg Growth
- -7.0%
- Ex-Dividend Date
- Sep 30, 2026
- Years of Growth
- 0
- Frequency
- monthly
- Beta
- 0.67
- Market Cap
- $233.0M
- P/E Ratio
- 7.9
- 5-Yr Total Return
- -37%
- 52-Week Range
- $6.83 – $14.35
- Dividend Safety
- D · 41/100
- Ever Cut?
- Yes (2021)
Frequently Asked Questions
SCM Price — Last 12 Months
Daily close
Price Return
1 Year
-37%
3 Years
-40%
5 Years
-37%
52-Week Range
$6.83 – $14.35
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is SCM worth?
Undervaluedlow confidenceOur blended fair-value estimate for Stellus Capital Investment Corporation is $15.49 per share, versus a market price of $8.78. That implies 76% of upside — a margin of safety of about 43%.
Fair Value
$15.49
Current Price
$8.78
Upside
+76%
Margin of Safety
43%
How we get there
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about -10.0% annual free-cash-flow growth. We model -5.0% — below our estimate, leaving room for upside if the business executes.
Assumptions: 7.6% discount rate (CAPM), -5.0% stage-1 growth, 2.5% terminal growth, $1.03 EPS, $1.33 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
SCM Dividend Safety Score
Risky
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Aug 31, 2026 | — | $0.0830 | regular |
| Jul 31, 2026 | — | $0.0830 | regular |
| Jun 30, 2026 | — | $0.1130 | regular |
| May 29, 2026 | — | $0.1130 | regular |
| Apr 30, 2026 | — | $0.1130 | regular |
| Mar 31, 2026 | — | $0.1130 | regular |
| Feb 27, 2026 | — | $0.1130 | regular |
| Jan 30, 2026 | — | $0.1130 | regular |
| Dec 31, 2025 | — | $0.1330 | regular |
| Nov 28, 2025 | — | $0.1330 | regular |
| Oct 31, 2025 | — | $0.1330 | regular |
| Sep 30, 2025 | — | $0.1330 | regular |
| Aug 29, 2025 | — | $0.1330 | regular |
| Jul 31, 2025 | — | $0.1330 | regular |
Income Calculator
At $1.33 / yr per share
