Capital Southwest Co. (NASDAQ:CSWC) Plans Dividend Increase – $0.64 Per Share

Capital Southwest Co. (NASDAQ:CSWC) declared 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 annualized dividend and a yield of 10.67%. 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 increased its dividend payment by an average of 8.1% annually over the last three years. Capital Southwest has a 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 fall. 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 Price Performance

Shares of Capital Southwest stock traded down $0.37 during midday trading on Wednesday, hitting $24.00. 85,058 shares of the company traded hands, compared to its average volume of 328,823. The stock has a market cap of $1.10 billion, a price-to-earnings ratio of 11.74 and a beta of 1.24. The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.18 and a current ratio of 0.18. The firm’s fifty day moving average price is $25.92 and its 200-day moving average price is $25.24. Capital Southwest has a 12 month low of $20.72 and a 12 month high of $27.23.

Capital Southwest (NASDAQ:CSWC) last announced its quarterly earnings results on Tuesday, May 14th. The asset manager reported $0.66 EPS for the quarter, meeting analysts’ consensus estimates of $0.66. Capital Southwest had a return on equity of 15.88% and a net margin of 46.81%. The company had revenue of $46.43 million during the quarter, compared to analysts’ expectations of $46.01 million. As a group, sell-side analysts forecast that Capital Southwest will post 2.62 earnings per share for the current year.

Analyst Upgrades and Downgrades

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

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.