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

Capital Southwest Corporation (NASDAQ:CSWC) declared a monthly dividend on Tuesday, February 24th. Shareholders of record on Monday, June 15th will be given a dividend of 0.1934 per share by the asset manager on Tuesday, June 30th. This represents a c) annualized dividend and a yield of 10.2%. The ex-dividend date is Monday, June 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 annually for the last 2 consecutive years. 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 tumble. 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 Stock Performance

Shares of CSWC stock traded down $0.26 during mid-day trading on Thursday, reaching $22.71. The stock had a trading volume of 193,671 shares, compared to its average volume of 634,437. Capital Southwest has a one year low of $17.46 and a one year high of $23.84. The firm has a market cap of $1.37 billion, a PE ratio of 12.55 and a beta of 0.76. The firm’s 50 day simple moving average is $22.78 and its 200 day simple moving average is $22.06. The company has a quick ratio of 0.15, a current ratio of 0.15 and a debt-to-equity ratio of 0.51.

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

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Triumph Capital Management bought a new position in Capital Southwest in the third quarter valued at approximately $28,000. Tower Research Capital LLC TRC lifted its holdings in 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 acquiring an additional 1,863 shares in the last quarter. Nomura Asset Management Co. Ltd. grew its position in shares of Capital Southwest by 58.5% in the 2nd quarter. Nomura Asset Management Co. Ltd. now owns 2,135 shares of the asset manager’s stock valued at $47,000 after purchasing an additional 788 shares during the period. State of Alaska Department of Revenue acquired a new position in shares of Capital Southwest in the third quarter valued at approximately $48,000. Finally, First Horizon Advisors Inc. boosted its stake in Capital Southwest by 1,214.0% in the 2nd quarter. First Horizon Advisors Inc. now owns 2,628 shares of the asset manager’s stock worth $58,000 after purchasing an additional 2,428 shares during the period. Institutional investors own 23.42% of the company’s stock.

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.