2024-04-05 08:15:00 ET
Summary
- Capital Southwest is a top pick for income investors, offering a 9.3% regular dividend yield plus potential for special dividends.
- CSWC has a well-managed and diversified portfolio, with a strong balance sheet and opportunities for portfolio accretion through equity raises.
- Despite trading at a premium to NAV, CSWC offers value with a forward P/E ratio of 9.2x and a second-best operating expense ratio across the BDC industry.
Now's a great time to be an income investor, as when the market is pre-occupied with chasing growth, investors can pick off +9% yields with ease. Such is the case with BDCs at this time, and this brings me to Capital Southwest ( CSWC ), which I last covered in early January, highlighting its strong capital appreciation potential and low fee structure....
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Capital Southwest: Hefty 9% Yield Supported By Low Operating Costs