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Capital Southwest Corporation (CSWC)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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18.76+0.27 (+1.46%)
At close: 04:00PM EDT
18.96 +0.20 (+1.07%)
After hours: 07:24PM EDT
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  • l
    lgtccjm
    big drop the last couple of days, wonder why
  • C
    Clif
    safest play in the market. nice n quiet. nice dividend.
    Neutral
  • u
    ugetgte
    This new supplemental div. of .15 is especially nice since they already prepaid the 4 quarterly supplementals for 2022 on Dec. 31 last year. Great company, one of the best BDC's for sure. I feel like a kid whose Dad just increased his allowance.
  • Y
    Yahoo Finance Insights
    Capital Southwest reached a 52 Week low at 22.26
  • u
    ugetgte
    Share price action today is just tracing back to where it should be, IMO. 28 was getting a little ahead of itself.
    It'll probably get back to that level at some point. Still a rock solid stock.
    Bullish
  • A
    AnnualRunRate
    CSWC just announced profits and increased the dividend again.
    https://finance.yahoo.com/news/capital-southwest-announces-financial-results-214558998.html
  • A
    AnnualRunRate
    I seem to be the only live poster on the CSWC board. Over the last six years, CSWC has turned in a 15.82% Total Return, which is better than about 95% of the stock market. My list includes NEWT (29.36%), CIM (25.37%), BST (23.05%), NRZ (18.88%), GAIN (18.65%), PDI (17.82%, STAG (17.62%), MAIN (16.84%), and CSWC at the aforementioned 15.82%. For comparison, SPY turned in 14.83% Total Return over the past six years.
  • l
    lgtccjm
    good earnings report and another increase in the dividend.
  • R
    Russell
    The big "uh oh" was this:

    Realized Loss on Extinguishment of Debt: $17.1 million

    Redeemed $125 million in aggregate principal amount of the 5.375% Notes due 2024 (the "October 2024 Notes")

    Realized loss relating to the October 2024 Notes redemption consists of "make-whole" premium of $15.2 million and the write off of related unamortized debt issuance costs of $1.9 million

    Paying a $15.2 million "pre payment penalty" on a $125 million loan is a painful exit. Basically a 10% fee, plus the $1.9 million costs is pretty painful.

    The good news is this: A: It's a one time event and it's over B: Redeeming the higher costs debt saves interest costs forever and ever, so it's a long term positive.

    3 non accruals is not awful, but it is an increase from prior quarters. ALL BDC's have credit losses, the good ones keep them to a minimum and mange them over time. If non accruals start to creep up over time, that's a warning sign.

    Overall, imho, not a bad quarter operationally, took a major hit on the debt fee, should be fine going forward.

    It will be interesting to hear the CFO discuss this onerous fee.
  • G
    Ginridge353
    Nice surprise with the $0.75 special dividend announced on Monday. This pushes the dividend yield for the year to 12.3% against Wednesday's closing price.
  • u
    ugetgte
    @WalkingEagle, yeah I was thinking the same thing, it sure reads like they are paying forward all of the supplemental dividends for next year. Of course that just means we have them in hand earlier. And they just might continue that policy next Dec., which would be another nice Xmas gift. I never did fully understand the purpose of paying the two dividends anyway, why not just declare one larger dividend? Will be interesting to see if they raise again in March. Great company.
    Bullish
  • M
    Mark
    watched the big pullback today but wanted to see earnings before pulling the trigger. earnings were in line. happy as a clam to get this solid dividend stock after hours under $26.
  • B
    Bob
    Earnings come out today. Hopefully the small business administration will have approved the company. There should be good news tonight.
  • A
    AnnualRunRate
    CSWC has been giving a regular dividend, plus a special dividend of $.10 every quarter for some time now. They have also been increasing the regular dividend by $.01 every quarter. At this point the regular is $.40, and the special is $10, making $.50 = $2.00 per year = 9.17% yield.
    Bullish
  • A
    AnnualRunRate
    Deemed Dividend declared by CSWC: 90¢ per share.

    Shareholders get a tax credit of 90¢ per share to take off our 2019 taxes.
    https://finance.yahoo.com/news/capital-southwest-announces-federal-tax-222736759.html

    The Company has elected to retain a portion of its net capital gains and designate a deemed distribution of $0.9031 per share to the Company’s common stockholders of record as of the close of business on December 31, 2019. When the Company designates a deemed distribution, instead of a cash distribution paid to common shareholders, the Company pays a 21% corporate-level U.S. federal income tax on the retained net capital gains. In turn, common stockholders are deemed to have received a capital gain dividend and are deemed to have paid the tax that is actually paid by the Company. As a result, common stockholders receive a tax credit that they can use to offset their tax on the deemed distribution or for other purposes, including claiming a refund, as appropriate.
    Bullish
  • T
    Tex
    Expect another pop tomorrow - regular dividend has went up again plus a special dividend of $0.50 at end of year
  • u
    ugetgte
    BTW,for those who chose not to wade through all the mud, the ex-dividend date is March 14, and the pay date is March 31.
  • r
    rollll
    My favourite dividend stock, 0.52 quarterly!
  • A
    Amazonia
    Man, this company is way more volatile than my other BDCs.
    Bullish
  • J
    Jim
    CSWC remains a "Level 1" and I'm expecting additional increases in the regular dividend plus continued supplemental/special dividends.

    https://seekingalpha.com/article/4455418-excellent-dividend-growth-stock-currently-yielding-9-1-percent-captial-southwest
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