Stellus Capital: Remains A Sell Due To Ongoing NAV Erosion

Stellus Capital remains a sell due to ongoing NAV erosion, declining earnings, and persistent portfolio challenges. SCM's dividend yield is unsustainably high at 14.9%, with management confirming a payout cut of ~20–25% after Q2 2026. Net investment activity is negative, non-accruals have risen to 9.2% of cost, and NAV has declined every quarter for over a year.