Capital Southwest Co. (NASDAQ:CSWC) to Issue Dividend Increase – $0.52 Per Share

Capital Southwest Co. (NASDAQ:CSWCGet Rating) announced a quarterly dividend on Tuesday, September 20th, Zacks reports. Stockholders of record on Thursday, December 15th will be paid a dividend of 0.52 per share by the asset manager on Friday, December 30th. This represents a $2.08 dividend on an annualized basis and a dividend yield of 11.22%. The ex-dividend date of this dividend is Wednesday, December 14th. This is a boost from Capital Southwest’s previous quarterly dividend of $0.50.

Capital Southwest has raised its dividend payment by an average of 7.3% per year over the last three years and has increased its dividend every year for the last 6 years. Capital Southwest has a payout ratio of 90.9% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Equities analysts expect Capital Southwest to earn $2.22 per share next year, which means the company should continue to be able to cover its $2.00 annual dividend with an expected future payout ratio of 90.1%.

Capital Southwest Trading Up 3.4 %

Shares of NASDAQ:CSWC opened at $18.54 on Thursday. The company has a 50 day moving average of $19.63 and a 200-day moving average of $21.19. The firm has a market cap of $510.41 million, a P/E ratio of 14.48 and a beta of 1.14. Capital Southwest has a twelve month low of $17.60 and a twelve month high of $28.41. The company has a current ratio of 0.13, a quick ratio of 0.13 and a debt-to-equity ratio of 0.65.

Capital Southwest (NASDAQ:CSWCGet Rating) last issued its quarterly earnings results on Monday, August 1st. The asset manager reported $0.49 earnings per share for the quarter, topping analysts’ consensus estimates of $0.48 by $0.01. The company had revenue of $22.54 million during the quarter, compared to analyst estimates of $22.36 million. Capital Southwest had a net margin of 35.02% and a return on equity of 11.22%. As a group, analysts anticipate that Capital Southwest will post 2.05 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Capital Southwest

Large investors have recently made changes to their positions in the company. Millennium Management LLC increased its stake in Capital Southwest by 420.5% in the 2nd quarter. Millennium Management LLC now owns 755,686 shares of the asset manager’s stock valued at $13,920,000 after buying an additional 610,502 shares during the period. Advisors Asset Management Inc. increased its stake in Capital Southwest by 5.7% in the 1st quarter. Advisors Asset Management Inc. now owns 196,419 shares of the asset manager’s stock valued at $4,661,000 after buying an additional 10,650 shares during the period. Legal & General Group Plc increased its stake in Capital Southwest by 9.6% in the 2nd quarter. Legal & General Group Plc now owns 140,274 shares of the asset manager’s stock valued at $2,584,000 after buying an additional 12,273 shares during the period. Goldman Sachs Group Inc. acquired a new position in Capital Southwest in the 2nd quarter valued at approximately $1,744,000. Finally, LPL Financial LLC increased its stake in Capital Southwest by 58.8% in the 2nd quarter. LPL Financial LLC now owns 85,384 shares of the asset manager’s stock valued at $1,573,000 after buying an additional 31,601 shares during the period. Institutional investors and hedge funds own 27.83% of the company’s stock.

Analysts Set New Price Targets

A number of analysts recently commented on the stock. JMP Securities dropped their target price on shares of Capital Southwest from $27.00 to $25.00 and set a “market outperform” rating on the stock in a report on Wednesday, August 3rd. B. Riley assumed coverage on shares of Capital Southwest in a report on Friday, September 16th. They issued a “neutral” rating and a $18.00 target price on the stock. Finally, Raymond James dropped their target price on shares of Capital Southwest from $26.00 to $23.00 and set an “outperform” rating on the stock in a report on Wednesday, August 3rd. Four investment analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $22.00.

About Capital Southwest

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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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