5 High Yield Monthly Dividend Stocks

3. Stellus Capital Investment Corporation (NYSE:SCM)

Dividend Yield as of January 14: 8.48%

Number of Hedge Fund Holders: 2

Stellus Capital Investment Corporation (NYSE:SCM) is a Texas-based investment firm that offers senior secured debt and equity to lower middle market companies in the United States. 

On October 28, Stellus Capital Investment Corporation (NYSE:SCM) announced earnings for the third quarter. The company posted a GAAP EPS of $0.66, exceeding estimates by $0.37. Revenue over the period came in at $17.03 million, up 21.49% from the prior-year quarter, outperforming estimates by $1.26 million. 

Stellus Capital Investment Corporation (NYSE:SCM) declared a monthly per share dividend of $0.0933 on January 14, in line with previous. The dividend will be paid on February 15 to shareholders of record on January 28. 

Oppenheimer analyst Mitchel Penn on November 1 upgraded Stellus Capital Investment Corporation (NYSE:SCM) to Outperform from Perform with a $15 price target after the Q3 results. The analyst credits the “strong” return on equity of 18.6% in the quarter and Stellus Capital Investment Corporation (NYSE:SCM)’s “high quality” portfolio for the upgrade.

In Q3 2021, Arrowstreet Capital and Two Sigma Advisors were long Stellus Capital Investment Corporation (NYSE:SCM), with collective stakes totaling $15.95 million.