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. Investors of record on Friday, May 15th will be given a dividend of 0.1934 per share by the asset manager on Friday, May 29th. This represents a c) dividend on an annualized basis and a dividend yield of 10.3%. The ex-dividend date is Friday, May 15th.

Capital Southwest has decreased its dividend by an average of 0.0%per year over the last three years and has increased its dividend every year for the last 2 years. Capital Southwest has a dividend 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 tumble. Equities 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 Trading Down 1.5%

CSWC traded down $0.35 during trading on Thursday, reaching $22.63. 253,013 shares of the company’s stock were exchanged, compared to its average volume of 636,134. The company’s fifty day moving average price is $22.78 and its 200-day moving average price is $22.06. The firm has a market capitalization of $1.36 billion, a PE ratio of 12.49 and a beta of 0.76. Capital Southwest has a fifty-two week low of $17.46 and a fifty-two week 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.

Capital Southwest (NASDAQ:CSWC) last released its earnings results on Monday, February 2nd. The asset manager reported $0.64 earnings per share for the quarter, meeting the consensus estimate of $0.64. Capital Southwest had a return on equity of 13.76% and a net margin of 45.46%.The firm had revenue of $61.45 million for the quarter, compared to analyst estimates of $57.37 million. During the same quarter in the prior year, the firm posted $0.63 earnings per share. As a group, equities analysts forecast that Capital Southwest will post 2.54 EPS for the current year.

Analyst Upgrades and Downgrades

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

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.