Daily dividend news for investors in dividend stocks

9.4% Yield Driven By 14 Consecutive Dividend Hikes And Still Growing: Capital Southwest

Published Thu, 01 Aug 2019 11:35:50 -0400 on Seeking Alpha

BDC Buzz Initiates Coverage Of CSWC
I am expanding coverage to include smaller and lesser-known Business Development Companies ("BDCs") with the potential to outperform due to being 'higher quality' as defined/discussed in "Assessing Risk: Retirement Portfolio Using BDCs Yielding 10%+" earlier this month.
I have added Capital Southwest (CSWC) to active coverage and included in the BDC Google Sheets along with its Baby Bond that trades publicly on the Nasdaq under the symbol CSWCL. CSWC is an internally-managed BDC with a $524 million portfolio with mostly first-lien debt positions and equity investments providing realized gains especially in its lower middle market investments similar to Main Street Capital (MAIN).
CSWC has increased its regular quarterly dividend each quarter since 2015 and equity participation is partially responsible for supporting continued quarterly supplemental dividends of $0.10 per share. The current dividend yield is around 9.4% (MAIN is currently 7.1%) which takes into account the recently announced $0.39 quarterly regular dividend and quarterly supplemental dividends of $0.10.

Source: CSWC 2019 Q4 - Results - Earnings Call Slides
As mentioned in the previously linked article, one of the many considerations when evaluating BDCs is management. This is likely the most important part of BDC analysis as management is responsible for building a portfolio to deliver returns to shareholders while protecting the capital invested. BDC... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
BLACKROCK KELSO CAPITAL 5.25   0.0 -0.12 0.56 13.61
GARRISON CAPITAL 6.94   0.0 -0.17 0.92 13.35
CAPITALA FINANCE 8.19   0.0 -3.13 1.00 12.46
THL CREDIT 6.96   0.0 -0.86 0.84 12.09
PENNANTPARK INVESTMENT 6.32   21.8 0.29 0.72 11.32
PROSPECT CAPITAL 6.71   16.8 0.40 0.72 10.76
HORIZON TECHNOLOGY FINANCE 11.85   9.5 1.25 1.20 10.12
OAKTREE SPECIALTY LENDING 4.90   0.0 -1.39 0.50 10.02
ALCENTRA CAPITAL 8.91   14.1 0.63 0.72 8.04
OAKTREE STRATEGIC INCOME 8.10   19.8 0.41 0.62 7.51
MEDLEY CAPITAL 2.61   0.0 -1.62 0.15 5.81
MAIN STREET CAPITAL 43.18   16.8 2.57 2.46 5.69


Older articles featuring Blackrock Kelso Capital (BKCC):
BIZD: Attractive 9% Yield, But Widening Credit Spreads A Risk
Assessing Risk: Retirement Portfolio Using BDCs Yielding 10%+
LOUD Dogs Flash Dividend Yields, Upsides, And Gains In July
62 Dogs Cry Out LOUD By Dividend Yields, Upsides, And Net Gains For June
10% Yielding New Mountain Finance Receives Fitch Rating
Dividend Increases For The High-Yield BDC Sector, Part 5: BlackRock TCP Capital
Monroe Capital Offers 15% Yield Due To Portfolio Credit Issues
Tax-Loss Harvesting And Merger Fears Driving 10%+ Yield For BlackRock TCP Capital?
Your 50 Financial WallStars Show Bountiful Yields With Net Gains For November 2019
Why I Sold This 11.1% Yielding BDC That Could Now Be A 'Buy'