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

Capital Southwest Co. (NASDAQ:CSWC - Get Free Report) announced a monthly dividend on Friday, June 13th, Wall Street Journal reports. Stockholders of record on Monday, September 15th will be paid a dividend of 0.1934 per share by the asset manager on Tuesday, September 30th. This represents a $2.32 dividend on an annualized basis and a dividend yield of 11.24%. The ex-dividend date is Monday, September 15th.

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. 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 $0.87 on Friday, reaching $20.65. 655,218 shares of the company were exchanged, compared to its average volume of 445,370. Capital Southwest has a 12 month low of $17.46 and a 12 month high of $27.23. The stock's fifty day moving average price is $20.36 and its 200 day moving average price is $21.66. The firm has a market capitalization of $1.11 billion, a PE ratio of 14.65 and a beta of 0.94. The company has a debt-to-equity ratio of 0.64, a current ratio of 0.18 and a quick ratio of 0.18.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last announced its earnings results on Wednesday, May 14th. The asset manager reported $0.54 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.62 by ($0.08). Capital Southwest had a return on equity of 15.18% and a net margin of 33.49%. The company had revenue of $52.34 million for the quarter, compared to the consensus estimate of $52.83 million. During the same period last year, the firm posted $0.68 EPS. On average, research analysts anticipate that Capital Southwest will post 2.54 EPS for the current fiscal year.

Institutional Investors Weigh In On Capital Southwest

Several institutional investors and hedge funds have recently bought and sold shares of CSWC. Royal Bank of Canada grew its holdings in shares of Capital Southwest by 13.4% in the 1st quarter. Royal Bank of Canada now owns 69,139 shares of the asset manager's stock worth $1,544,000 after purchasing an additional 8,188 shares during the last quarter. Caxton Associates LLP bought a new stake in shares of Capital Southwest in the 1st quarter worth about $318,000. Finally, Goldman Sachs Group Inc. grew its holdings in shares of Capital Southwest by 246.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 257,672 shares of the asset manager's stock worth $5,751,000 after purchasing an additional 183,313 shares during the last quarter. Institutional investors own 23.42% of the company's stock.

Analysts Set New Price Targets

CSWC has been the topic of a number of research reports. Wall Street Zen raised shares of Capital Southwest from a "sell" rating to a "hold" rating in a research report on Saturday, April 19th. Raymond James lowered their price target on shares of Capital Southwest from $24.00 to $23.00 and set an "outperform" rating on the stock in a report on Friday, May 16th. Finally, UBS Group lowered their price target on shares of Capital Southwest from $23.50 to $20.50 and set a "neutral" rating on the stock in a report on Thursday, April 17th.

About Capital Southwest

Capital Southwest Corporation is a business development company specializing in credit and private equity and venture capital investments in middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, industry consolidation, recapitalizations and growth capital investments.