Should I Buy Stellus capital investment (SCM)? Finance YouTuber Analysis

The YouTuber recommends Stellus Capital Investment for its 11.6% dividend yield and its focus on safety. Nearly all of its loans (97%) are in first-lien or senior secured debt, ensuring priority repayment. Additionally, 98% of its portfolio is in floating-rate loans, making it a safer BDC strategy, though investors should monitor the gap between its weighted average yield and dividend yield.

“Our second income stock here, Stellis Capital Investment, ticker SCM, has a slightly lower dividend at 11.6% but the same upside price return we want to see in these cash flow stocks.”

The YouTuber recommends Stellus Capital for its safer business model among BDCs and its 11.5% dividend yield. He notes that 97% of its loans are in first-lien or senior secured debt, making it less risky, and 98% are floating rate. While the spread between its portfolio yield and dividend yield is tighter than ideal, the company has a history of consistent cash returns.

“I've highlighted Stella Capital ticker sem lately for its safer business model among bdcs and hi 11.5% dividend yield”

The analyst recommends Stellus Capital for its safer business model among BDCs, with 97% of its loans in first lien or senior secured debt and 98% floating rate, ensuring it gets paid first. Despite a smaller spread between its 11.9% portfolio yield and 11.5% dividend yield, the company has a history of consistent cash returns, paying over $15 per share in dividends since its 2010 IPO.

“Stellis has nearly all 97% of its loans in first lean or senior secure debt status which means it gets paid first even if a company defaults almost all the portfolio 98% is also floating rate so all in all this is one of the safer BDC strategies you're going to find”

SCM is considered a safety pick with an 11.5% dividend, with 97% of its loans in first-lien or senior secured debt and 98% floating rate. This structure ensures it gets paid first in defaults and offers stability. The company has paid over $15 per share in dividends since its 2012 IPO and grown its dividend by 17% over the last 5 years, resulting in a 68% total return.

“stellis capital investment ticker sem with its 11.5% dividend is another safety pick here on the list with little or no price return”

The YouTuber recommends Stellus Capital Investment (SCM) as a monthly dividend stock with an 11.3% yield, similar to QYLD but with better factors. He highlights its Business Development Corporation (BDC) structure, with 97% of loans in first-lien secured debt and 98% in floating rates, making it a safer BDC strategy. Despite some concerns about dividend sustainability due to the portfolio yield being close to the dividend yield, the company has a history of cash flow return and dividend growth.

“First up is Stell capital investment ticker sem with its 11.3% yield very close to that qld but with a few more factors in its favor.”

The YouTuber recommends Stellus Capital Investment for its strong dividend coverage, with an 11.3% yield covered by a 11.9% average yield on its loan portfolio. He emphasizes the safety of its strategy, with 97% of loans in first lien or senior secured debt and 98% in floating rate loans, contributing to dividend growth and total returns.

“and here stellis capital investment ticker sem pays out an 11.3% dividend yield covered by its 11.9% average yield on its portfolio of loans stellis has nearly 97% of its loans in first lean or senior secur debt status which means it gets paid first even if a company defaults almost all the portfolio 98% is also in floating rate loans so all in all this is one of the safer BDC strategies you're going to find”

The analyst recommends Stellus Capital Investment due to its safe BDC strategy, with 97% of its loans in first lien or senior secured debt and 98% in floating rate. Despite the portfolio yield being slightly lower than the dividend, the company has a history of commitment to cash flow return, paying over $15 per share in dividends since its 2012 IPO and growing its dividend by 17% over the last five years.

“all in all this is one of the safer BDC strategies you're going to find”