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Stellus Capital InvestmentSCM -1.48%46 5-Year Yield-on-Cost % is 27.31 as of Aug. 26, 2026, which is 61% above its 10-year median of 16.96. GuruFocus rates SCM with a GF Score™ of 46/100 and a GF Value™ of $12.06 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,110 Asset Management companies, Stellus Capital Investment ranks better than 97.12% on this metric.
Stellus Capital Investment (NYSE:SCM) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Stellus Capital Investment 5-Year Yield-on-Cost % Related Terms
SCM vs IDE, ETX, FT: 5-Year Yield-on-Cost % Comparison
For the Asset Management subindustry, Stellus Capital Investment's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Stellus Capital Investment 5-Year Yield-on-Cost % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Stellus Capital Investment's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Stellus Capital Investment's 5-Year Yield-on-Cost % falls into.
Stellus Capital Investment 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Stellus Capital Investment (SCM) has a 5-Year Yield-on-Cost % of 27.31 as of Aug. 26, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Stellus Capital Investment and its competitors. This is 61% above median its historical median of 16.96. Over the past decade, Stellus Capital Investment's 5-Year Yield-on-Cost % has ranged from 11.60 to 35.51. According to the industry distribution chart, Stellus Capital Investment ranks #32 out of 1110 companies in the Asset Management industry, placing it in the top 2.9%.
Is Stellus Capital Investment's 5-Year Yield-on-Cost % too high?
Stellus Capital Investment's current 5-Year Yield-on-Cost % of 27.31 is 61% above median its 10-year median of 16.96. Over the past 10 years, this metric has ranged from a low of 11.60 to a high of 35.51. The Asset Management industry median 5-Year Yield-on-Cost % is 6.32. Stellus Capital Investment's value of 27.31 is 332.5% above this industry median. Based on the distribution chart, Stellus Capital Investment ranks #32 out of 1110 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Stellus Capital Investment has a GF Score™ of 46/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Stellus Capital Investment's 5-Year Yield-on-Cost % compare to IDE and ETX?
According to the Asset Management industry distribution chart, Stellus Capital Investment ranks #32 out of 1110 companies for 5-Year Yield-on-Cost %. This places Stellus Capital Investment in the top 3% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 6.32. Stellus Capital Investment's value of 27.31 is 332.5% above this benchmark. Historically, Stellus Capital Investment's own 5-Year Yield-on-Cost % has ranged from 11.60 to 35.51 over the past decade. While the company's 10-year median is 16.96 vs. the industry median of 6.32, Stellus Capital Investment has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for an Asset Management company?
The median 5-Year Yield-on-Cost % among Asset Management companies is 6.32, based on 1,110 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Stellus Capital Investment's current 5-Year Yield-on-Cost % of 27.31 is 332.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Stellus Capital Investment and its competitors. For the Asset Management industry, the median 5-Year Yield-on-Cost % is 6.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stellus Capital Investment's current 5-Year Yield-on-Cost % is 27.31, which is 61% above median its own 10-year median of 16.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stellus Capital Investment stock overvalued right now?
Based on GuruFocus' analysis, Stellus Capital Investment (SCM) is currently considered Modestly Undervalued. The stock's GF Value™ is $12.06, compared to a current price of $8.66 — trading 28.2% below its estimated fair value. The current 5-Year Yield-on-Cost % is 27.31, which is 61% above median its 10-year median of 16.96 and 332.5% above the Asset Management industry median of 6.32. Stellus Capital Investment's overall GF Score™ is 46/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Stellus Capital Investment (SCM), the current 5-Year Yield-on-Cost % is 27.31 as of Aug. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Stellus Capital Investment (SCM) Overvalued in 2026?
Based on GuruFocus' analysis, Stellus Capital Investment stock appears to be undervalued.
The current stock price of $8.66 is trading 28.2% below its estimated GF Value™ of $12.06.
GuruFocus considers Stellus Capital Investment to be Modestly Undervalued.
Key valuation signals for SCM:
5-Year Yield-on-Cost %: 27.31 (61% above median its 10-year median of 16.96)
GF Value™: $12.06 vs. price of $8.66 (28.2% below fair value)
Industry Position: 332.5% above the Asset Management median (#32 of 1110)
No single metric tells the full story. See the SCM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Stellus Capital Investment Corp is a closed-end, non-diversified management investment company. Its objective is to maximize the total return to its stockholders in the form of current income and capital appreciation. It invests in private middle-market companies through first lien, second lien, and unsecured debt financing, often with a corresponding equity investment. The company invests in various sectors, such as business services, energy, general industrial, government services, healthcare, software, and specialty finance. The business activity of the firm functions throughout the United States, and it generates revenue in the form of interest income on debt investments, capital gains, and distributions.
46GF Score
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