CSWC - Capital Southwest: I Was Wrong About This BDC Gem (Upgrade)

2024-06-20 10:51:33 ET

Summary

• Capital Southwest offers passive income investors a growing investment portfolio with a first lien-focus, and a well-covered 10% dividend yield with potential for dividend hikes.
• The BDC's strong history of growing dividends, focus on first liens, and the central bank's cautious rate cut approach make it a 'Buy' despite the high premium.
• Capital Southwest's net investment income growth, solid dividend coverage, and potential for special dividends make it a safe investment with upside potential.

Capital Southwest (CSWC) offers passive income investors a growing investment portfolio, a First Lien-focus, a well-covered 10% dividend yield and dividend upside.

The business development company easily covered its dividend with net investment income in the first quarter, and I think that investors are going to see hikes in the regular dividend in 2024....

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