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

Key Points

• Capital Southwest declared a monthly dividend of $0.1934 per share, payable November 30 to shareholders of record November 13. The dividend implies an annualized yield of approximately 9.1%.
• The dividend is currently supported by earnings, but coverage is tight: the payout ratio is 99.1%, with analysts projecting a 97.9% ratio next year.
• Capital Southwest reported quarterly EPS of $0.58, exceeding the $0.56 consensus estimate, while revenue of $61.05 million was slightly below expectations.

Capital Southwest Corporation (NASDAQ:CSWC - Get Free Report) declared a monthly dividend on Thursday, August 27th. Stockholders of record on Friday, November 13th will be paid a dividend of 0.1934 per share by the asset manager on Monday, November 30th. This represents a c) annualized dividend and a dividend yield of 9.1%. The ex-dividend date is Friday, November 13th.

Capital Southwest has increased 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 $2.37 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 97.9%.

Capital Southwest Price Performance

CSWC opened at $25.40 on Friday. The company has a fifty day simple moving average of $24.11 and a 200 day simple moving average of $23.35. The firm has a market cap of $1.62 billion, a price-to-earnings ratio of 14.03 and a beta of 0.69. Capital Southwest has a twelve month low of $19.37 and a twelve month high of $25.48. The company has a current ratio of 0.17, a quick ratio of 0.17 and a debt-to-equity ratio of 0.62.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last released its quarterly earnings results on Monday, August 3rd. The asset manager reported $0.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.02. The firm had revenue of $61.05 million for the quarter, compared to the consensus estimate of $61.22 million. Capital Southwest had a net margin of 46.68% and a return on equity of 13.88%. During the same quarter in the previous year, the firm posted $0.61 EPS. Equities research analysts expect that Capital Southwest will post 2.27 EPS for the current fiscal year.

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.

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