Stellus Capital: The Dividend Cut Finally Stopped The Bleeding (Rating Upgrade)

Impact · against what's priced in

STEL is seeing a stabilization in its dividend coverage and NAV, providing a floor for the stock, though portfolio contraction remains a headwind. The acquisition of a new SBIC license and available capital for redeployment offer the most concrete catalysts for future growth.

STEL+0.30

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In context

The 11.8% dividend is now fully covered by net investment income and the company has a new SBIC license and $140M in non-earning assets for redeployment, offsetting ongoing portfolio contraction.

Read from the article alone

• STEL
• asset management
• bdc
• dividend cut
• dividend yield
• investment income
• nav
• sbic

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