Stellus Capital InvestmentNYSE: SCM

Stellus Capital Investment Corporation is a solid buy for passive income on the pullback. The company is positioned to profit from a higher-for-longer rate environment. The stock is selling at a moderate premium to net asset value.

Stellus Capital Investment Corporation (NYSE: SCM) will announce its first quarter financial results for the period ending March 31, 2024 on May 9, 2024 after the market closes. A conference call to review these results will take place on May 10, 2024 at 11:00 AM CT.

Stellus Capital Management offers a well-diversified portfolio of debt and equity investments with a 12.5% dividend yield.

Stellus Capital is paying out a 12.5% dividend yield that's 114% covered by fiscal 2023 fourth-quarter net investment income. The BDC saw its NAV per share grow by 7 cents sequentially during the fourth quarter, with the commons currently swapping hands for a small discount to NAV. Loans on non-accrual status remain low at 1.3% of SCM's total loan portfolio at fair value.

HOUSTON , Feb. 27, 2024 /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE: SCM) will release its financial results for the fourth quarter and year ended December 31, 2023 on Monday, March 4, 2024, after the close of the stock market. Stellus Capital Investment Corporation will host a conference call to discuss these results on Tuesday, March 5, 2024 at 12:00 PM, Central Time.

HOUSTON , Oct. 31, 2023 /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE: SCM) will release its financial results for the third quarter ended September 30, 2023 on Tuesday, November 7, 2023, after the close of the stock market. Stellus Capital Investment Corporation will host a conference call to discuss these results on Wednesday, November 8, 2023 at 10:00 AM, Central Time.

Stellus Capital currently yields 12.2% and comes with a monthly dividend payment schedule. The dividend is 123% covered by GAAP net investment income as of the end of the most recent quarter. A 4% discount to NAV that's rising could present an entry point as the US economy continues to notch growth.

Stellus Capital (SCM) has become technically an oversold stock now, which implies exhaustion of the heavy selling pressure on it. This, combined with strong agreement among Wall Street analysts in revising earnings estimates higher, indicates a potential trend reversal for the stock in the near term.

After losing some value lately, a hammer chart pattern has been formed for Stellus Capital (SCM), indicating that the stock has found support. This, combined with an upward trend in earnings estimate revisions, could lead to a trend reversal for the stock in the near term.