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 given 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 yield of 10.67%. The ex-dividend date of this dividend 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% annually over the last three years. Capital Southwest has a payout ratio of 88.7% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Equities 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 Trading Down 1.5 %

NASDAQ:CSWC traded down $0.37 during trading hours on Wednesday, reaching $24.00. 85,058 shares of the company were exchanged, compared to its average volume of 328,823. The company has a debt-to-equity ratio of 0.55, a current ratio of 0.18 and a quick ratio of 0.18. The firm has a market cap of $1.10 billion, a price-to-earnings ratio of 11.74 and a beta of 1.24. Capital Southwest has a 52-week low of $20.72 and a 52-week high of $27.23. The stock has a 50 day simple moving average of $25.92 and a 200 day simple moving average of $25.24.

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

Analyst Upgrades and Downgrades

Separately, JMP Securities lowered 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.