CSWC Stock Recent News

Call Scheduled for 11:00 a.m. Eastern Time on Tuesday, October 29, 2024 Call Scheduled for 11:00 a.m. Eastern Time on Tuesday, October 29, 2024

Dividend stocks can offer current income and long-term growth, and it pays to be choosy when it comes to REITs and BDCs. Capital Southwest carries a low-cost structure, strong dividend track record, and conservative first-lien debt investments. Healthpeak Properties has a diversified portfolio in life sciences, outpatient medical, and senior housing, benefiting from rent escalations and favorable demographic trends.

Achieving the first $100,000 is crucial for portfolio diversification and accessing material reinvestment opportunities. If the objective is to build a massive snowball from durable income investments, there are only a few asset classes that tick the necessary boxes. In this article, I explain how I would allocate $100,000 among MLPs, BDCs, equity REITs, and SCHD.

Capital Southwest: 10% Quality Yield Has Its Price

Insider buying in Golub Capital BDC and Capital Southwest suggests potential for higher share prices, despite recent sector retraction due to anticipated lower interest rates. Golub Capital BDC offers an attractive investment with a 2.5% discount to NAV, a strong balance sheet, and significant insider buying. I currently rate them a buy. Capital Southwest still trades at a 51.4% premium above its NAV price, prompting me to assign a hold rating as the share price could pull back further in the near future.

Uncertainty surrounds interest rate direction for the rest of the year, influenced by conflicting economic indicators and consumer sentiment. I highlight 2 stocks that are well-positioned for wherever interest rates may land this year. Capital Southwest is a well-positioned BDC with low expenses, a conservative investment strategy, a strong balance sheet, and consistent dividend growth.

My income stream keeps growing, enabling my portfolio to keep rapidly growing. Capital Southwest hiked its dividend once more and continues to show its strength in the face of a recession. Meet your expenses head-on, with recurring income, instead of destroying your portfolio slowly.

Capital Southwest's share price has pulled back due to expected interest rate declines, but still trades at a P/NAV of 1.44x, significantly higher than some peers like ARCC & BXSL. CSWC saw strong growth year-over-year, their portfolio value increasing double-digits. Management has also taken a more defensive posture with increased exposure to first-lien loans. Although dividend coverage is strong, and they're well-prepared for potential volatility, Capital Southwest remains a hold with potential to buy on a further price drop.

Capital Southwest (NASDAQ:CSWC ) Q1 2025 Earnings Conference Call August 6, 2024 11:00 AM ET Company Participants Chris Rehberger - Executive Vice President, Finance Bowen Diehl - President & Chief Executive Officer Josh Weinstein - Chief Investment Officer Michael Sarner - Chief Financial Officer Conference Call Participants Mickey Schleien - Ladenburg Thalmann Bryce Rowe - B. Riley Sean-Paul Adams - Raymond James Operator Thank you for joining today's Capital Southwest First Quarter Fiscal Year 2025 Earnings Call.

Capital Southwest (CSWC) came out with quarterly earnings of $0.63 per share, missing the Zacks Consensus Estimate of $0.66 per share. This compares to earnings of $0.65 per share a year ago.