Stellus Capital: Potential Negative Growth, Non-Accruals And Lofty Valuation Could Hinder Returns

RapidEye/E+ via Getty Images Despite offering a double-digit dividend yield, Stellus Capital Investment Corporation's (NYSE:SCM) has been struggling to outperform the S&P 500 in total returns. I believe this trend is likely to continue because the potential impact of rate cuts, significant share issuance and increasing non-accruals could be the biggest headwinds for its financial growth and returns. Moreover, share price upside also appears limited because of a valuation-related factor. Therefore, I maintai ...