5 Best BDC Stocks To Buy

Page 1 of 5

In this article, we discuss 5 best BDC stocks to buy now. If you want to read our detailed analysis of business development companies and their returns in the past, go directly to read 10 Best BDC Stocks To Buy

5. Capital Southwest Corporation (NASDAQ:CSWC)

Number of Hedge Fund Holders: 9

Capital Southwest Corporation (NASDAQ:CSWC) is an internally-managed business development company that is an active capital provider to middle-market companies in the US. The company is based in Texas. In fiscal Q2 2023, the company reported a total investment income of $26.8 million, which showed a 32% growth from the prior-year period. The company’s total investment portfolio amounted to over $1.1 billion and had $30.2 million available in cash and cash equivalents. Its strong cash position makes it one of the best stocks on our list.

Capital Southwest Corporation (NASDAQ:CSWC) currently pays a quarterly dividend of $0.52 per share and has a dividend yield of 11.98%, as of December 15. On October 27, the company also announced a supplemental dividend of $0.05 per share. It has been raising its dividends consistently for the past two years.

In December, B. Riley upgraded Capital Southwest Corporation (NASDAQ:CSWC) to Buy with a $20 price target, highlighting growth across the sector due to high-interest rates.

As of the close of Q3 2022, 9 hedge funds tracked by Insider Monkey reported owning stakes in Capital Southwest Corporation (NASDAQ:CSWC), the same as in the previous quarter. These stakes have a total value of over $26 million.

Follow Capital Southwest Corp (NASDAQ:CSWC)

Page 1 of 5