CSWC Stock Recent News

CSWC Reports Pre-Tax Net Investment Income of $0.69 Per Share for Quarter Ended June 30, 2024 CSWC Reports Pre-Tax Net Investment Income of $0.69 Per Share for Quarter Ended June 30, 2024

S&P 500 dividend yield has dropped to historical lows due to a rise in non-dividend or low-dividend paying stocks. Capital Southwest offers a much higher yielding way to fund retirement with an 8.8% dividend yield. CSWC's strong balance sheet, operating leverage, and diversified portfolio make it a compelling long-term investment choice.

Capital Southwest has been a strong performer in the BDC sector, with a total return comprised of both price appreciation and a high distribution rate. CSWC's portfolio strategy focuses on lower middle market companies, with a large emphasis on first lien debt investments for stability. While CSWC's net investment income has benefited from higher interest rates, potential future rate cuts may impact the price, presenting a better entry opportunity.

DALLAS, July 17, 2024 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, is pleased to announce its preliminary operating results for the first quarter of its 2025 fiscal year (quarter ended June 30, 2024) and its first quarter 2025 earnings release and conference call schedule.

Reaching for higher yield doesn't always have to mean taking on too much risk. In this article, I highlight 2 picks with strong fundamentals and balance sheets. Chatham Lodging Trust Preferred Stock and Capital Southwest offer attractive yields above 8% and upside potential.

Interest rates have been cut in countries outside the US, with expectations for the FED to follow suit, leading to potential stock market gains in the coming months. Agree Realty is a strong buy before FED rate cut, with potential for 24% upside in the next 2 years. Capital Southwest is overvalued at the moment, but may present a better entry price after interest rates are cut.

Capital Southwest is a financial company lending to medium-sized businesses, with a 40% stock price increase in the last year. The company manages a high-risk, high-reward portfolio of loans and equity investments, with a focus on diverse industries and strong cash flows. While the company is undervalued when considering dividends, the interest rate risk poses a potential impact on financial results and dividend distribution.

High yield doesn't necessarily have to translate to higher risk if done right. It's important to evaluate dividend stocks based on coverage, leverage, and asset quality. Brookfield Infrastructure Partners and Capital Southwest offer well-covered and high dividends and are well-positioned to grow.

Capital Southwest is rapidly proving itself to be an elite BDC. I expect its price to climb and yield to drop as more investors clamor into its common shares. I love to invest in companies for income that others don't know about.

High-yield dividend stocks are some of the best investments you can make in the current environment. Most top growth and tech stocks are all trading at nosebleed valuations.