Image Source: Capital Southwest Corp () is a U.S.-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.As a business development company, 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’s share price rose 15.87% from $21.86 to $25.33 as of Monday’s market close. In the past 10 years the company’s share price has never been less than $9.30 nor higher than $28.41.If shares trade in the range of $20.00 to $30.00 this next year, the recent $25.33 share price might reach $25.50. Of course, CSWC price could also drop about the same $0.17 estimated amount, or more.My $0.17 upside estimate is about the same as the median of 1yr price targets estimated by six analysts tracking CSWC for brokers.CSWC DividendCapital Southwest has paid variable dividends since April 1985. First paying annually, then semi-annually from 1988 to 2016, and quarterly from 2017 to the present. The most recent $0.64 Q dividend was declared on August 5th, for shareholders of record on September 13th, and the dividend was paid September 30th. A forward-looking $2.56 annual dividend yields 10.11% at Monday’s closing price.CSWC ReturnsPutting it all together, a $2.73 estimated one-year gross gain per share shows up by adding Franklin’s $2.56 estimated annual dividend to the estimated price upside of $0.17, making that $2.73 gross gain amount.A little under $1000 buys us 39 shares at their $25.33 Monday price.A $10 broker fee (if charged), paid half at purchase and half at sale, could take about $0.26 per share out of the $2.73 gross-gain to give us a net gain of $2.47 X 39 shares = $96.33 for about a 9.75% estimated net gain for the year.Furthermore, the $101.10 estimated annual dividend income from $1K invested is near 4 times more than the $25.33 share price. By these numbers, CSWC might be an ideal dividend dog at this time.Thus, you might choose to pounce on CSWC It is a 63 year-old quarterly dividend-paying Texas-based business development company with a 39 year record paying annual to now 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 Corp
