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

Capital Southwest Corporation (NASDAQ:CSWC) announced a monthly dividend on Tuesday, February 24th. Stockholders of record on Monday, June 15th will be paid a dividend of 0.1934 per share by the asset manager on Tuesday, June 30th. This represents a c) dividend on an annualized basis and a dividend yield of 10.3%. The ex-dividend date is Monday, June 15th.

Capital Southwest has decreased its dividend payment by an average of 0.0%annually over the last three years and has raised its dividend annually for the last 2 consecutive years. Capital Southwest has a payout ratio of 99.1% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings fall. Research analysts expect Capital Southwest to earn $2.44 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 95.1%.

Capital Southwest Stock Performance

CSWC stock traded down $0.35 during trading on Thursday, reaching $22.63. The company had a trading volume of 253,013 shares, compared to its average volume of 636,134. The company has a market cap of $1.36 billion, a price-to-earnings ratio of 12.49 and a beta of 0.76. Capital Southwest has a twelve month low of $17.46 and a twelve month high of $23.84. The company has a debt-to-equity ratio of 0.51, a quick ratio of 0.15 and a current ratio of 0.15. The firm has a 50-day simple moving average of $22.78 and a 200-day simple moving average of $22.06.

Capital Southwest (NASDAQ:CSWC) last posted its quarterly earnings results on Monday, February 2nd. The asset manager reported $0.64 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.64. Capital Southwest had a net margin of 45.46% and a return on equity of 13.76%. The business had revenue of $61.45 million during the quarter, compared to analysts’ expectations of $57.37 million. During the same quarter last year, the company posted $0.63 earnings per share. As a group, sell-side analysts expect that Capital Southwest will post 2.54 earnings per share for the current year.

Analyst Ratings Changes

Several brokerages have recently issued reports on CSWC. Noble Financial upgraded Capital Southwest to a “buy” rating in a research note on Wednesday, November 5th. Weiss Ratings upgraded shares of Capital Southwest from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, January 28th. Capital One Financial set a $22.00 price objective on shares of Capital Southwest in a research note on Tuesday, November 4th. Zacks Research raised shares of Capital Southwest from a “strong sell” rating to a “hold” rating in a report on Monday, January 5th. Finally, Loop Capital reissued a “buy” rating and set a $23.00 target price on shares of Capital Southwest in a report on Wednesday, November 5th. Six analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $23.42.

About Capital Southwest

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.