CSWC Stock Recent News

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.

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.