Capital Southwest Co. (NASDAQ:CSWC) to Issue $0.58 Quarterly Dividend

Capital Southwest Co. (NASDAQ:CSWC) announced a quarterly dividend on Tuesday, February 4th,Wall Street Journal reports. Shareholders of record on Friday, March 14th will be paid a dividend of 0.58 per share by the asset manager on Monday, March 31st. This represents a $2.32 annualized dividend and a yield of 10.19%. The ex-dividend date is Friday, March 14th.

Capital Southwest has decreased its dividend by an average of 3.5% annually over the last three years. Capital Southwest has a dividend payout ratio of 95.9% 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 $2.43 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 95.5%.

Capital Southwest Price Performance

CSWC stock traded up $0.48 during midday trading on Tuesday, reaching $22.76. 1,202,687 shares of the company’s stock traded hands, compared to its average volume of 451,904. The company has a 50-day simple moving average of $22.25 and a two-hundred day simple moving average of $23.86. The company has a quick ratio of 0.16, a current ratio of 0.16 and a debt-to-equity ratio of 0.35. Capital Southwest has a 1-year low of $20.68 and a 1-year high of $27.23. The company has a market cap of $1.09 billion, a price-to-earnings ratio of 13.88 and a beta of 1.24.

Capital Southwest (NASDAQ:CSWC) last posted its quarterly earnings data on Monday, February 3rd. The asset manager reported $0.63 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.01. Capital Southwest had a net margin of 37.77% and a return on equity of 15.54%. On average, analysts anticipate that Capital Southwest will post 2.55 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Separately, B. Riley lifted their price objective on Capital Southwest from $24.00 to $24.50 and gave the company a “neutral” rating in a report on Wednesday, October 30th.

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, industry consolidation, recapitalizations and growth capital investments.