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

Key Points

• Capital Southwest Corporation declared a monthly dividend of $0.19 per share, payable on October 31st, highlighting a yield of 10.2%.
• The company has a high payout ratio of 99.1%, indicating its current earnings cover the dividend but may pose risks if future earnings decline.
• Recent trading activity shows shares of Capital Southwest have increased by 0.5%, with a current market price of $22.76 and a market cap of $1.27 billion.

Capital Southwest Corporation (NASDAQ:CSWC - Get Free Report) announced a monthly dividend on Wednesday, August 27th. Stockholders of record on Wednesday, October 15th will be given a dividend of 0.1934 per share by the asset manager on Friday, October 31st. This represents a c) dividend on an annualized basis and a dividend yield of 10.2%. The ex-dividend date of this dividend is Wednesday, October 15th.

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. Equities 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 Trading Up 0.5%

Shares of NASDAQ:CSWC traded up $0.11 during midday trading on Thursday, hitting $22.76. 149,313 shares of the stock were exchanged, compared to its average volume of 565,077. The business's 50-day moving average price is $22.59 and its 200 day moving average price is $21.74. The company has a debt-to-equity ratio of 0.53, a quick ratio of 0.19 and a current ratio of 0.19. The stock has a market capitalization of $1.27 billion, a price-to-earnings ratio of 13.79 and a beta of 0.98. Capital Southwest has a 12 month low of $17.46 and a 12 month high of $25.90.

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

Institutional Trading of Capital Southwest

Institutional investors and hedge funds have recently modified their holdings of the business. Focus Partners Wealth increased its position in Capital Southwest by 6.6% in the fourth quarter. Focus Partners Wealth now owns 9,464 shares of the asset manager's stock worth $207,000 after buying an additional 585 shares in the last quarter. Confluence Investment Management LLC raised its stake in shares of Capital Southwest by 0.6% in the second quarter. Confluence Investment Management LLC now owns 102,107 shares of the asset manager's stock worth $2,250,000 after buying an additional 585 shares during the period. CWM LLC raised its stake in shares of Capital Southwest by 26.6% in the second quarter. CWM LLC now owns 2,930 shares of the asset manager's stock worth $65,000 after buying an additional 615 shares during the period. Capital Analysts LLC raised its stake in shares of Capital Southwest by 35.6% in the fourth quarter. Capital Analysts LLC now owns 2,550 shares of the asset manager's stock worth $56,000 after buying an additional 669 shares during the period. Finally, Union Bancaire Privee UBP SA raised its stake in shares of Capital Southwest by 5.1% in the second quarter. Union Bancaire Privee UBP SA now owns 14,349 shares of the asset manager's stock worth $316,000 after buying an additional 694 shares during the period. Institutional investors 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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