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Stellus Capital Investment Corp (NYSE:SCM) currently pays a monthly dividend that annualizes to a yield well above what most income investors can find elsewhere.

March's top-yielding monthly pay (MoPay) equities offer annual dividends from $1K invested exceeding their share price, presenting volatile but potentially lucrative opportunities. Analyst estimates suggest the top 10 MoPay stocks could deliver average net gains of 35.12% by March 2027, with risk/volatility 25% below the market. Stellus Capital Investment (SCM), CION Investment (CION), and PennantPark Floating Rate Capital (PFLT) lead both by yield and price upside, reinforcing the yield-based 'dogcatcher' strategy.

Stellus Capital Investment Corporation (SCM) Q4 2025 Earnings Call Transcript

Stellus Capital Investment remains under significant pressure, with deteriorating portfolio quality, declining NAV, and unsustainable distributions. SCM's net investment income fell to $0.29 per share, below its $0.33 quarterly distribution, highlighting payout unsustainability and ongoing NAV erosion. Despite trading at a 26.6% discount to NAV, SCM faces higher operating expenses and negative net investment activity, with repayments outpacing new investments.

Stellus Capital (SCM) came out with quarterly earnings of $0.29 per share, missing the Zacks Consensus Estimate of $0.31 per share. This compares to earnings of $0.37 per share a year ago.

HOUSTON, March 11, 2026 /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE:SCM) ("Stellus", "we", or the "Company") today announced financial results for its fiscal quarter and year ended December 31, 2025. Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report solid operating results for the quarter ended December 31, 2025, in which we earned both U.S. GAAP net and core investment income of $0.29 per share and net realized income of $0.48 per share.