Capital Southwest Co. (NASDAQ:CSWC) Raises Dividend to $0.64 Per Share

Capital Southwest Co. (NASDAQ:CSWC) announced a quarterly dividend on Monday, August 5th, Zacks reports. Shareholders of record on Friday, September 13th will be paid a dividend of 0.64 per share by the asset manager on Monday, September 30th. This represents a $2.56 dividend on an annualized basis and a dividend yield of 10.64%. The ex-dividend date is Friday, September 13th. This is a positive change from Capital Southwest’s previous quarterly dividend of $0.57.

Capital Southwest has raised its dividend by an average of 8.1% per year over the last three years. Capital Southwest has a dividend payout ratio of 88.7% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Equities research analysts expect Capital Southwest to earn $2.63 per share next year, which means the company should continue to be able to cover its $2.28 annual dividend with an expected future payout ratio of 86.7%.

Capital Southwest Stock Performance

Shares of CSWC stock traded down $0.30 during mid-day trading on Wednesday, reaching $24.07. The stock had a trading volume of 47,444 shares, compared to its average volume of 328,574. The firm’s 50 day simple moving average is $25.92 and its 200 day simple moving average is $25.24. The company has a quick ratio of 0.18, a current ratio of 0.18 and a debt-to-equity ratio of 0.55. Capital Southwest has a one year low of $20.72 and a one year high of $27.23. The firm has a market cap of $1.10 billion, a PE ratio of 11.89 and a beta of 1.24.

Capital Southwest (NASDAQ:CSWC) last posted its earnings results on Tuesday, May 14th. The asset manager reported $0.66 EPS for the quarter, hitting the consensus estimate of $0.66. The business had revenue of $46.43 million during the quarter, compared to the consensus estimate of $46.01 million. Capital Southwest had a return on equity of 15.88% and a net margin of 46.81%. On average, analysts forecast that Capital Southwest will post 2.62 EPS for the current year.

Analyst Ratings Changes

Separately, JMP Securities downgraded Capital Southwest from an “outperform” rating to a “market perform” rating in a research report on Wednesday, May 15th.

About Capital Southwest

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.