Capital Southwest Corporation (CSWC)
Capital Southwest: Technical Strength, Attractive Dividend Yield - Initiate With Buy
Capital Southwest's chart remains bearish, but the moving averages and indicators show a bullish technical outlook for CSWC stock. Most recent earnings were mixed as prepayment and fees boosted total investment income while losses are piling up in their investments. The P/B ratio's contraction since mid-2024 is justified as confidence has weakened and so the stock is near fair valuation currently.
I'm Buying Up To 11% Yield For Recurring Income
Income investing offers flexibility and peace of mind, with Capital Southwest and Kimco Realty providing high yields and diversification for retail investors. Capital Southwest, an internally managed BDC, carries an 11.5% yield, a conservative first-lien-heavy portfolio, and strong fundamentals, making it an attractive buy. Kimco Realty, the largest U.S. shopping center REIT, offers a stable 4.7% yield, strong leasing activity, and strategic growth through acquisitions and capital recycling.
Capital Southwest: Long-Term Bullish, But Not Adding Here
Capital Southwest remains a top BDC for income, with strong financials and portfolio growth, despite a high premium and limited short-term upside. The latest earnings report showed a beat on the top and bottom lines, solid dividend coverage, and increased first-lien loan exposure. Non-accruals are slightly high, but the portfolio quality and liquidity position suggest resilience against economic volatility.
Ride The Fat Dividend Train, +10% Yield: Capital Southwest
I don't buy holdings hoping and praying that they climb in value. I buy holdings to get paid. A promised value increase tomorrow does little for me or you today. Collect income. It's the most powerful resource in the world.
Buy These 7-11% Yielding Cash Cows For Retirement Income
Capital Southwest offers an 11% yield, strong balance sheet, and robust deal flow, making it a compelling investment in the underserved lower middle market. Omega Healthcare Investors provides a 7.4% yield, steady long-term leases, and improving operator fundamentals, offering growth in supply constrained markets. Both CSWC and OHI present attractive high-yielding opportunities, offering stability and potentially strong returns amidst market volatility and high-growth stock pressures.
Capital Southwest Offers An Excellent 11% Yield
Capital Southwest (CSWC) offers a strong 11% dividend yield and is well-positioned in a higher-for-longer interest rate environment, making it an attractive investment. CSWC's portfolio consists primarily of secure first-lien debt investments, contributing to a lower-risk profile and stable returns. Recent earnings show net investment income per share of $0.63, with potential for future profit growth as new funds are deployed.
Capital Southwest: Higher Rates Can Lead To A Higher Premium (Rating Upgrade)
Capital Southwest focuses on generating attractive returns through a diverse portfolio of debt investments, showing meaningful growth in portfolio fair value last quarter. CSWC's Q4 earnings were solid, but non-accrual rates increased to 2.7% of fair portfolio value, raising concerns about credit quality. In addition, PIK income increased. The current dividend yield is around 10.8% and is fully supported by net investment income.
Capital Southwest (CSWC) Q3 2025 Earnings Call Transcript
Capital Southwest (NASDAQ:CSWC ) Q3 2025 Earnings Conference Call February 4, 2025 11:00 AM ET Company Participants Chris Rehberger - EVP, Finance Bowen Diehl - CEO Michael Sarner - CFO Josh Weinstein - CIO Conference Call Participants Mickey Schleien - Ladenburg Doug Harter - UBS Erik Zwick - Lucid Capital Markets Robert Dodd - Raymond James Operator Thank you for joining today's Capital Southwest Third Quarter Fiscal Year 2025 Earnings Call. Participating on the call today are Bowen Diehl, Chief Executive Officer; Michael Sarner, Chief Financial Officer; Josh Weinstein, Chief Investment Officer; and Chris Rehberger, Executive Vice President, Finance.
Capital Southwest (CSWC) Surpasses Q3 Earnings and Revenue Estimates
Capital Southwest (CSWC) came out with quarterly earnings of $0.63 per share, beating the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.70 per share a year ago.
Unlock Income: Why Capital Southwest Is A Hidden Gem For Dividend Investors
Capital Southwest offers a compelling opportunity for income-focused investors, especially within tax-advantaged accounts, due to its high dividend yield and efficient cost structure. CSWC's portfolio is primarily composed of first-lien senior secured loans, providing a strong equity buffer and diversification across various sectors. Despite an elevated non-accrual rate, restructuring efforts and strong performance of the remaining portfolio highlight CSWC's resilience and potential for high income returns.
Capital Southwest: Good For Income, Questionable For Superior Returns
Over the past couple of quarters, Capital Southwest has lagged behind the market. While CSWC is somewhat similar to MAIN, the return divergence between the two has been massive. By taking a closer look at the recent earnings report, I see an interesting opportunity for income investors to lock in a high and durable yield.
Baby Boomers Should Buy These 10% and More Ultra-High-Yield Stocks Hand-Over-Fist
With the youngest baby boomers (Americans born between 1946 and 1964) approaching retirement age, it is becoming increasingly important to focus on magnificent dividend stocks that will supply significant passive income either in or out of designated retirement accounts like IRAs.
