2024-03-22 15:38:14 ET
Summary
- Capital Southwest has grown their dividend by a CAGR of 21.26% over the last decade.
- Their investment portfolio is highly rated and mostly comprised of floating rate loans.
- The current dividend yield for CSWC is 9.5%, and the company has declared a supplemental dividend due to high levels of income. However, future interest rate increases may stop supplementals.
Overview
I've become a big believer in BDCs (business development companies) because of the strong dividend cash flow they can provide. Capital Southwest ( CSWC ) has been one of my strongest BDC holdings and has consistently provided me with a growing stream of income. As a bonus, the price of CSWC has also grown by nearly 130% over the last decade. The current dividend yield is 9.5% and while lower than some BDC peers like Ares Capital ( ARCC ), TriplePoint Venture ( TPVG ), or Golub Capital ( GBDC ), CSWC has delivered superior total return because of the price appreciation....
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For further details see:
Capital Southwest: Strong NII Can Potentially Offset Interest Rate Sensitivity