Image Source: Capital Southwest Corp () is a Texas-based investment company that specializes in providing customized financing to middle-market companies across various industries.The company’s investment objective is to produce attractive risk-adjusted returns by generating current income from debt investments and capital appreciation from equity and equity-related investments. It focuses on providing flexible financing solutions through partnerships with business owners, management teams, and financial sponsors.The company’s portfolio may include senior debt, second lien, and subordinated debt, preferred stocks, common stocks, and warrants.The primary source company’s revenue comprises interest income and dividend income from investments made as well as management fees.Capital Southwest Corporation was founded on April 19, 1961, and is based in Dallas, Texas.Three key data points gauge CSWC or any dividend-paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three keys also best tell whether any company has made, is making, and will make money.CSWC PriceOver the past year, Capital Southwest Corp’s share price rose 12% from $22.45 to $25.17 as of Friday’s market close. In the past ten years the company’s share price has never been less than $8.00 nor higher than $28.41.If CSWC shares trade in the range of $20.00 to $30.00 this next year, the recent $25.17 share price might reach $25.42 in a year. Of course, CSWC’s price could also drop about the same $0.25 estimated amount or more.My $0,25 upside estimate is based on the median of one-year price targets estimated by six analysts tracking CSWC for brokers.CSWC DividendCapital Southwest Corp has paid variable quarterly dividends since January 2017. Prior to 2017, the company paid annual and semi-annual dividends from 1985 forward. The most recent $0.64 Q dividend was declared August 5th, for shareholders of record on September 13th, and the dividend was paid on September 30th. A forward-looking $2.56 annual dividend yields 10.17% at Monday’s closing price.CSWC ReturnsPutting it all together, a $2.81 estimated one-year gross gain per share shows up by adding Capital Southwest’s $2.56 estimated annual dividend to the estimated price upside of $0.25, making that $2.81 gross gain per share total.A little over $1000 buys us 40 shares at the $25.17 share price.A $10 broker fee (if charged), paid half at purchase and half at sale, might take about $0.25 per share out of the $2.81 annual estimated gross gain to give us a net gain of $2.56 X 40 shares = $102.40 for about a 10% estimated net gain for the year.Furthermore, the $101.64 annual dividend income from $1K invested is 4.2 times more than the $25.17 share price. By these numbers, CSWC may be an ideal dividend dog at this time.Thus, you might choose to pounce on CSWC It is a 63-year-old quarterly variable dividend-paying Texas-based business development company with a 7-year record paying variable quarterly dividends.The exact track of CSWC’s future price and dividend will entirely be determined by market action.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:
Current Report: Capital Southwest
