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

Key Points

• Capital Southwest Corporation has announced a monthly dividend of $0.19 per share, payable on November 28th to investors of record on November 14th, yielding 10.2% annually.
• The company has a current dividend payout ratio of 99.1%, which analysts predict will improve to a future ratio of 95.1% based on expected earnings of $2.44 per share next year.
• Shares of Capital Southwest are trading at $22.76, with the stock experiencing significant changes in institutional ownership recently, as hedge funds increase their stakes.

Capital Southwest Corporation (NASDAQ:CSWC - Get Free Report) announced a monthly dividend on Wednesday, August 27th. Investors of record on Friday, November 14th will be paid a dividend of 0.1934 per share by the asset manager on Friday, November 28th. This represents a c) dividend on an annualized basis and a dividend yield of 10.2%. The ex-dividend date is Friday, November 14th.

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 decline. 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

Shares of NASDAQ CSWC traded up $0.11 during trading hours on Thursday, reaching $22.76. The stock had a trading volume of 149,313 shares, compared to its average volume of 565,077. The firm has a market cap of $1.27 billion, a price-to-earnings ratio of 13.79 and a beta of 0.98. The company has a current ratio of 0.19, a quick ratio of 0.19 and a debt-to-equity ratio of 0.53. Capital Southwest has a fifty-two week low of $17.46 and a fifty-two week high of $25.90. The firm has a 50-day moving average of $22.59 and a 200-day moving average of $21.74.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last announced its earnings results on Wednesday, August 6th. The asset manager reported $0.59 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.59. Capital Southwest had a return on equity of 14.17% and a net margin of 39.95%.The firm had revenue of $55.95 million during the quarter, compared to analysts' expectations of $54.36 million. During the same period in the prior year, the firm earned $0.69 EPS. Equities research analysts predict that Capital Southwest will post 2.54 earnings per share for the current year.

Institutional Investors Weigh In On Capital Southwest

Hedge funds have recently made changes to their positions in the business. Fortitude Family Office LLC acquired a new stake in shares of Capital Southwest during the second quarter worth $31,000. Ameriflex Group Inc. acquired a new stake in shares of Capital Southwest during the fourth quarter worth $33,000. Tower Research Capital LLC TRC boosted its holdings in shares of Capital Southwest by 13,307.1% during the second quarter. Tower Research Capital LLC TRC now owns 1,877 shares of the asset manager's stock worth $41,000 after purchasing an additional 1,863 shares during the last quarter. Quarry LP boosted its holdings in shares of Capital Southwest by 52.5% during the fourth quarter. Quarry LP now owns 2,126 shares of the asset manager's stock worth $46,000 after purchasing an additional 732 shares during the last quarter. Finally, Nomura Asset Management Co. Ltd. boosted its holdings in shares of Capital Southwest by 58.5% during the second quarter. Nomura Asset Management Co. Ltd. now owns 2,135 shares of the asset manager's stock worth $47,000 after purchasing an additional 788 shares during the last quarter. Institutional investors and hedge funds own 23.42% of the company's stock.

Capital Southwest Company Profile

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.

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