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.
Capital Southwest's stock correction, triggered by higher non-accruals and lower net investment income, presents a buying opportunity at $21.50 for passive income investors. Despite the increased non-accrual ratio, Capital Southwest's First Lien portfolio grew to $1.4 billion, with cash interest collection up 2% QoQ. The base dividend was raised to $0.58 per share, but the rising dividend pay-out ratio to 100% raises concerns about future supplemental dividends.
MAIN and CSWC are leading blue-chip BDCs with sky-high dividend yields. However, their performances have sharply diverged from each other in recent months. I discuss which is the better buy right now.
Capital Southwest is an internally managed BDC with a diversified portfolio, primarily focused on first-lien debt, offering a 10% regular dividend yield. Despite recent stock price volatility and increased non-accruals, CSWC's long-term value creation has provided my portfolio with attractive returns. Lower interest rates could improve the Company's equity investments and credit situation, but dynamic rate cuts may pressure dividend coverage, potentially reducing yield-on-cost.
With the youngest Baby Boomers (Americans born between 1946 and 1964) approaching retirement age, it's 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.
Panic selling is a terrible way to destroy your income stream, and retirees are often guilty of this practice. We review the recent earnings and dip to see if the sell-off is overdone. I collect income from all corners of the economy to fund my retirement.
Capital Southwest's recent earnings report showed a decline in net investment income and total investment income, but impressive portfolio growth and solid credit quality. Despite a slight drop in NAV, this grew on an absolute basis. Their balance sheet remains strong with significant liquidity and one of the lowest leverages amongst their peers. Investors should wait for a pullback to around $18 or below for a better entry point, as the stock is currently expensive.
Capital Southwest (NASDAQ:CSWC ) Q2 2025 Earnings Conference Call October 29, 2024 11:00 AM ET Company Participants Chris Rehberger - EVP of Finance Bowen Diehl - CEO Josh Weinstein - Chief Investment Officer Michael Sarner - CFO Conference Call Participants Brian Mckenna - JMP Securities Bryce Rowe - B. Riley Securities FBR Doug Harter - UBS Matthew Hurwit - Jefferies Robert Dodd - Raymond James Operator Thank you for joining today's Capital Southwest Second Quarter Fiscal Year 2025 Earnings Call.
Capital Southwest (CSWC) came out with quarterly earnings of $0.66 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.69 per share a year ago.
CSWC has paid five straight $.06/share supplemental quarterly dividends. The article covers key aspects such as earnings, new business ventures and dividends, providing a comprehensive overview of the company's financial health. Analysts' price targets and valuations are discussed, offering insights into the stock's potential market performance and investment attractiveness.
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.
Capital Southwest: 10% Quality Yield Has Its Price