Capital Southwest Co. (NASDAQ:CSWC) Declares Dividend Increase – $0.39 Per Share

Capital Southwest Co. (NASDAQ:CSWC) announced a quarterly dividend on Thursday, May 30th, NASDAQ reports. Stockholders of record on Friday, June 14th will be given a dividend of 0.39 per share by the asset manager on Friday, June 28th. This represents a $1.56 dividend on an annualized basis and a dividend yield of 7.21%. The ex-dividend date is Thursday, June 13th. This is a boost from Capital Southwest’s previous quarterly dividend of $0.38.

Capital Southwest has increased its dividend payment by an average of 148.3% per year over the last three years and has increased its dividend annually for the last 3 consecutive years. Capital Southwest has a payout ratio of 121.9% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Capital Southwest to earn $1.79 per share next year, which means the company should continue to be able to cover its $1.56 annual dividend with an expected future payout ratio of 87.2%.

Shares of CSWC stock traded down $0.25 during trading hours on Friday, reaching $21.65. 76,500 shares of the stock traded hands, compared to its average volume of 49,966. Capital Southwest has a 1-year low of $17.22 and a 1-year high of $24.17. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.29 and a quick ratio of 0.28. The firm has a market capitalization of $373.03 million, a P/E ratio of 15.25 and a beta of 0.25.

Capital Southwest (NASDAQ:CSWC) last released its quarterly earnings results on Monday, June 3rd. The asset manager reported $0.40 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $0.40. Capital Southwest had a net margin of 68.26% and a return on equity of 7.53%. The business had revenue of $14.31 million for the quarter, compared to analyst estimates of $14.25 million. Sell-side analysts predict that Capital Southwest will post 1.69 EPS for the current fiscal year.

CSWC has been the topic of a number of recent analyst reports. BidaskClub upgraded shares of Capital Southwest from a “hold” rating to a “buy” rating in a report on Thursday, May 9th. JMP Securities boosted their price target on shares of Capital Southwest from $22.50 to $23.00 and gave the company a “market outperform” rating in a report on Friday, March 15th. National Securities restated a “buy” rating and set a $24.00 price target on shares of Capital Southwest in a report on Tuesday. Finally, Zacks Investment Research lowered shares of Capital Southwest from a “buy” rating to a “hold” rating in a report on Monday, February 11th. One analyst has rated the stock with a sell rating, one has assigned a hold rating and three have assigned a buy rating to the stock. Capital Southwest presently has an average rating of “Hold” and a consensus target price of $23.50.

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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, recapitalizations and growth capital investments. It does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing.

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Dividend History for Capital Southwest (NASDAQ:CSWC)

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