E Daily Stock Analysis: Capital Southwest

Today we look at a small-cap business development company named Capital Southwest Corp. Its trading ticker symbol is CSWC. This is my first ever report on Capital Southwest Corporation for this portfolio or any of my previous portfolios.

Capital Southwest Corp is a US-based investment company that specializes in providing customized financing to middle-market companies across various industries. 

The company's investment objective to produce attractive risk-adjusted returns by generating current income from debt investments and capital appreciation from equity and equity-related investments. 

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 stock, and common stock and warrants. The primary source company's revenue comprises interest income and dividend income from investments made as well as management fees. 

The firm has the flexibility to hold investments for a very long period in its portfolio companies. It may also invest through warrants. The firm prefers to take Board participation in its portfolio companies. 

Capital Southwest Corporation was founded on April 19, 1961, and is based in Dallas, Texas.

Three key data points gauge dividend equities or funds like Capital Southwest Corp:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

CSWC Price

Capital Southwest's price per share closed at $21.56 Friday. A year ago its price was $20.39. Price per share recovered by $1.17 or about 5.7% this past year. 

If  Capital Southwest Corp stock trades in the range of $5 to $25 this next year, its recent $21.56 price might rise by $0.54 to reach $22.10 by February 22, 2022. That's in line with the company's 40-year average price upside. 

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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