Capital Southwest Corporation Announces Monthly Dividend of $0.19 (NASDAQ:CSWC)

Capital Southwest Corporation (NASDAQ:CSWC) declared a monthly dividend on Thursday, August 27th. Stockholders of record on Thursday, October 15th will be given a dividend of 0.1934 per share by the asset manager on Friday, October 30th. This represents a c) annualized dividend and a dividend yield of 9.1%. The ex-dividend date of this dividend is Thursday, October 15th.

Capital Southwest has raised its dividend payment by an average of 0.0%annually over the last three years and has increased its dividend annually for the last 2 consecutive years. Capital Southwest has a dividend payout ratio of 99.1% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Equities research analysts expect Capital Southwest to earn $2.37 per share next year, which means the company should continue to be able to cover its $2.32 annual dividend with an expected future payout ratio of 97.9%.

Capital Southwest Stock Performance

Capital Southwest stock opened at $25.40 on Friday. Capital Southwest has a fifty-two week low of $19.37 and a fifty-two week high of $25.48. The firm’s 50 day simple moving average is $24.11 and its 200-day simple moving average is $23.35. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.17 and a quick ratio of 0.17. The company has a market cap of $1.62 billion, a P/E ratio of 14.03 and a beta of 0.69.

Capital Southwest (NASDAQ:CSWC) last issued its quarterly earnings results on Monday, August 3rd. The asset manager reported $0.58 EPS for the quarter, beating the consensus estimate of $0.56 by $0.02. Capital Southwest had a net margin of 46.68% and a return on equity of 13.88%. The business had revenue of $61.05 million during the quarter, compared to the consensus estimate of $61.22 million. During the same quarter in the prior year, the firm earned $0.61 EPS. As a group, equities research analysts predict that Capital Southwest will post 2.27 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CSWC. Triumph Capital Management purchased a new stake in Capital Southwest in the 3rd quarter worth approximately $28,000. Allied Private Wealth LLC purchased a new position in shares of Capital Southwest during the 2nd quarter valued at $37,000. Tower Research Capital LLC TRC grew its holdings in shares of Capital Southwest by 13,307.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 1,877 shares of the asset manager’s stock valued at $41,000 after acquiring an additional 1,863 shares in the last quarter. Osbon Capital Management LLC acquired a new position in shares of Capital Southwest in the fourth quarter worth $55,000. Finally, CENTRAL TRUST Co acquired a new position in shares of Capital Southwest in the first quarter worth $60,000. 23.42% of the stock is owned by hedge funds and other institutional investors.

Capital Southwest Company Profile

Capital Southwest (NASDAQ: CSWC) is a publicly traded investment firm structured as a business development company (BDC) that provides customized financing solutions to middle-market companies across the United States. The firm offers a spectrum of debt and equity capital, including senior secured loans, mezzanine debt, and both preferred and common equity investments. By partnering with corporate management teams, Capital Southwest seeks to support growth initiatives, recapitalizations, acquisitions, and ownership transitions.

Founded in 1961 and headquartered in Dallas, Texas, Capital Southwest has cultivated a track record of long-term partnerships with privately held businesses and select public companies.