CSWC
Capital Southwest Corporation
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*>It's not "forced selling", it's not "your money back to you"* It is though. The NAV drops by same amount as the dividend payout. They are giving a portion of the company's total value as a payout; even if that portion of the total value was in cash. *>It's a process of generating cashflow through internal ROI and distribution of that cash. The mechanism is very different from how growth stocks work.* It's not different at all other than the final step. A company still has assets and liabilities, they (hopefully) make good decisions that lead to profits (increased NAV), with growth focused companies reinvesting those profits (to entice via price appreciation) versus non-growth companies electing to pay out (as opposed to sitting on a big pile of cash) as an enticement for investors. You're accepting the dividend payout at the expectation that the NAV goes down by that same amount (and likely the company won't be growing too fast if at all but that is a different conversation). \>*Please take a look at SGOV, SCHD, ADX, CSWC for examples.* Why did you include a treasury fund on this list? \>*And yes the funds may move down temporarily but so what? There are funds with stable dividends throughout GFC, Covid, 2022 corrections.* They still decreased in overall value, meaning yes, even the dividend returns went down (even if the div% remained the same or rose). You were suggesting the OP use dividend funds as a cash placeholder because they are scared to invest, but dividend funds would still follow the market and total returns would decrease in a crash even with dividend payouts. Ironically, for this specific purpose if OP wanted a cash placeholder, SGOV would be great.
Obviously it's not free money but you are misunderstanding fundamentally how dividends work. It's not "forced selling", it's not "your money back to you". It's a process of generating cashflow through internal ROI and distribution of that cash. The mechanism is very different from how growth stocks work. Please take a look at SGOV, SCHD, ADX, CSWC for examples.
If you are interested in BDCs, I would start with those that internally managed - MAIN, CSWC, HTGC and TRIN. Much better alignment and a naturally lower cost structure. Just understand that they are cyclical creatures and if you want to hold long term, you may not see a lot of NAV growth. They are high dividend yield companies. Raymond James publishes a weekly overview of BDCs that can provide a useful overview of the various companies. Everyone has different focuses in their investment approach. Always research and know what you are getting into.
Public REITS are Dead Money dividend yield TRAPS....Their NAV and share prices keep dropping due to constant dilution to raise cash, coupled with high interest rates, one may break even but collect a measly 5%-7% divided. BDC's are better plays for dividends, with a modest stock growth. CSWC, TRIN, SAR, MAIN **Good luck........;+)**
Like most things in life, it depends :D Everybody's favorite ETF is SCHD. their yield is tame at 3.94%, but their total return is a whole lot better. You get a steady income and do not forego growth. On energy I have HESM, sporting a 7.31% yield. Midstream energy companies can suffer during recessions but the long term demand for all sorts of energy is strong. One I have a ton of faith on is VICI, 5.39% yield,. It is a Real Estate Investment Trust that specializes in casinos. As a matter of fact they are probably the only REIT that collected 100% rents during Covid. Who would have thought casinos had so much money... They are expanding their market (number of properties under management) so there is room for capital growth. O is another solid REIT that has been paying and raising dividends for 27 years straight (5.73%). That includes both the dot-com and the housing crisis. The BDC sector is heading towards turbulence with both high interest and maybe a recession, but their high yields are worth the risk. I own MAIN, CSWC, and HTGC. I got out of CUBE (storage units REIT) but their 4.76% yield is solid. GUT is a closed end fund meant to generate income. They have pretty much 0 growth since inception 25 years ago, but they have been paying north of 10% yield for those 25 years. Their NAV premium has always been ugly but they have always delivered. Honestly I expect a 20% yield cut anytime and that would still have them yielding 9.4%, which would not be the worst thing in the world. I have others but that should give you some stuff to research.
Looking at the data, the US stock market, especially tech and small caps, have to fall further. BUT the US stock market has the ability to completely ignore facts, which could mean that it recovers and then comes down later. And Trump is so erratic that I wouldn't rule out that he does a 180 on his current course. But all in all, I am bearish on US stocks. The DAX has to cool off first. I expect it to come down slightly in the next months before rising again. However, I have access to the research if the DZ Bank and they changed their projections to 24.000 points in June and 26.000 points end of the year. Before they were at 19.500 June and 21.500 end of the year. After the 'Sondervermögen' in Germany, they changed it. Nevertheless, the best chances right now are found in German and European small caps. Look at the charts of the SDAX or für ETFs for the European small caps. They are still far below their 2021 highs, in contracts to the S&P, NASDAQ or DAX which are all far above these 2021 highs. I like your allocation (especially the put on Apple, it's a rare sight). But I think I wouldn't allocate much money on bonds right now. Both in the US and Europe (especially Germany) current developments are currently indicating higher for longer interest rates. This could hinder long-dated bonds from gaining in price. But it depends on how and in which bonds you invest. I think a good way right now, besides European and German small caps, is a dividend and credit approach. Dividends from good companies will even flow in times of stagflation. BDC's (business development companies) are generating money through credits and are paying high dividends. They are positive for the year. They only suffer if there is a deep recession. Not 100% safe though. I like ARCC and CSWC, but there are also ETFs for BDCs specifically. I would definitely not invest in stocks that are dependent on the consumer and make most of their revenue in the US. The US consumer is cracking down like crazy right now. Sorry for typos and grammar. I am not native in English and am in a hurry right now
At first, I went crazy for high-yield dividends, wondering why everybody wasn't doing it. Then stock after stock cut their dividend and went into terminal free fall. Read some more and came to realize there's no free lunch. What dividends give, falling share prices take away. I now have my portfolio divided about equally between growth (VOO, VGT, JEPQ) and dividends (JEPQ again, ARCC and CSWC), which have generous yields AND moderate growth. I'm clinging to dividends as a security blanket against the possibility of a bad market turndown. I find [https://totalrealreturns.com/](https://totalrealreturns.com/) to be a valuable tool for comparing stocks and funds.
VOO and VGT good, NVDA excellent of course, especially if you bought early. Not impressed with VYM. I use [totalrealreturns.com](http://totalrealreturns.com) and find CSWC to be crazy good. 11% dividend and in a dip ATM.
Good luck finding anything that has consistent growth AND meaningful dividends. It seems to be an either/or world. I'm in my first full year of investing myself, but I've been listening to a lot of advice. Right now I'm keeping about 60% in VOO and VGT, 30% in JEPQ, CSWC and ARCC, which pay 9-12% divs and have a little growth. Your mileage may vary.
You don't need anyone to tell you how fortunate you are, not only that you inherited young but you have a mature outlook regarding the money. I hope you're getting other advice besides from Reddit. You don't say how much you have available to invest, but it would have to be pretty substantial to provide enough income for the kinds of RE investments and property management that you anticipate. Most of us are just happy to have a portfolio that grows 10-12% a year over our working lives without drawing anything out, and then enough income to supplement SS through retirement. So we basically stick to SP500 ETFs and the like. In your case, you might try JEPQ, CSWC or ARCC, which pay fairly high dividends and also have some growth.
Until I find out otherwise, this seems to be a good tool for comparing the value of different growth and income stocks and funds: [https://totalrealreturns.com](https://totalrealreturns.com) Using it, I've come to realize that growth indexes like VOO and VGT blow most dividend stocks out of the water. As such, I've sold off most of my div's except CSWC and JEPQ. I'm stuck with a few yield traps for the time being and sadly, possibly forever.
Covered call etfs are trash. They don't maintain value. You are better off with BDC,s such as ARCC, BXSL, OBDC, HTGC, CSWC. If you buy them at the right time you can get 10% + yields with around 5% a year dividend growth and share appreciation.
It’s worthwhile to hang onto your shares for a while and just watch the price action. I’m down a little on one monthly, but it will rise (and fall again) somewhat predictably. All have gained, even through the last week. I have ARCC, BXSL, CSWC plus a couple others.
$CSWC has a 10% dividend and it’s up 21% since May without the dividend even being considered
I like ABBV, ENB, ARCC the best from the list. The depreciating stock price in tobacco should be used with a 25% trailing stop to protect yourself. SBUX is my least favorite here. PFE should have a trailing stop. WPC doesn’t excite me either. Some stocks I like CUBE, CSWC for honorable mention. This portfolio tells a story yet it doesn’t tell the whole story. It looks pretty good.
I also see high frequency day trading as gambling and I don't do it. I do, however, do some short term / opportunistic trading of stocks that know well and also hold for long term purposes. It takes some focus and time but it's not overly burdensome given the profit. Have been doing it regularly for the past five years since we got settled after we retired & moved. As an example, I hold Capital Southwest (CSWC) for the dividend (it's a high dividend business development company). Right now my core holding of CSWC is about 3% of my total liquid assets but I'm willing to have it be up to 5%. When it dips enough I buy another block from my cash reserves (which are currently about 35% of my liquid assets because I'm getting 5% risk free, thanks Chairman Powell). When that block goes up 2% or so I sell (unless a dividend is coming up), then I rebuy when it drops again. I bought a block of CSWC on 10/20/23 at $21.15, sold it later that day at $21.52, bought again on 10/23/23 at $20.95, sold on 10/25/23 at $21.34, bought again on 10/27/23 at $21.05 and sold today at $21.80, then later bought back again at $21.25. I didn't catch the bottom or top on any of those days but I've made over 7% on that block in eight trading days. And my only real risk is that the stock falls and I keep it for the next several months while earning 11.75% dividend. I generally go for 1% to 2% profit. I consider what I do to be playing small ball... base hits, walks, no home runs. I generally have no more than 5% of my liquid assets in short term positions. I do most of these trades an IRA so there aren't any tax issues. I also stop doing it if it starts to feel like work.
And if you invested in CSWC 20 years ago you would have gained 3384%. many stocks lost value in short time spans of 1 2 or even 5 years. true winners give you great results over the long term.
That's not true in many cases. take Capital Southwest for example - CSWC the dividend yield for the stock is above 10% And the total return for the stock in the last 10 years has been 813%. if you choose the correct stocks you can get both capital gains and dividends. https://www.averageannualreturn.com/cswc/
I believe so. I sell many putts most weekly but I do go out a few weeks at times if the premium is enticing. CSWC might not be weekly.
I’ve been selling CSP on CSWC and CLF on a weekly basis. Always for $1 less than what it closes at on Monday. That with CCs and a couple swing trades, I’ve been avg around $150 a week. If my puts get assigned I’m fine holding that stock. I’ll sell CCs and make more premium.
Some BDCs are interesting right now: HTGC, CSWC, TSLX all priced for a slowdown, underperformed from rising interest rates and recent bank troubles. However, their lending rates are variable and would eventually benefit from higher interest rates as long as the smaller companies in their portfolios don't go bankrupt. They are like a leveraged play on corporate lending.
Listen you degenerate gamblers: This table basically tells you to buy REITs. Few of you will do so because you won't touch anything other than OTM 0DTE with a ten foot pole but look: If once in your life you buy like 100 stocks of O, you currently get 25 bucks each month to gamble away. If you initially invest in a high-yield BDC like MAIN or CSWC you get close to 10 percent yield which could net you like 50 bucks on an initial investment of 5.000 dollars. 50 bucks you repeatedly can gamble away for the rest of your life - much better than gamble it away all at once! Tl;dr: For once in your life don't be a total regard, invest some money in a high yielding REIT or BDC and gamble for the rest of your life.
Depends on the company. Index mutual funds, etc are in my 401k and I just leave them be. Currently my portfolio consists of XOM, DIS, Raytheon, CSWC, Opendoor, with a tiny holding of Palantir just for fun. XOM is on Drip. Raytheon is on DCA, CSWC is on a modified DCA, Opendoor is in the load up phases and Disney I just started to tier back in to buying again this week. Slowly at the moment, but I’ll load up under 100 if it dips that far. I’m like 30% cash right now
CSWC had a very respectable 8% dividend yield. Nice find
CSWC is my Diamond in the rough. I auto never understand why so few people invest in $POOL
XOM, but bonus pick that no one else ever picks up on is CSWC
The top two of each: Champions: EPD (7.6%); MO (7.0%) Contenders: DKL (9.2%); MMP(8.5%); [ABR (8.2%) for balance. Challengers: while MPLX is the top (8.6%), I chose the next two in the list: CSWC (7.8%); TFSL (6.6%) SIMPLE AVERAGE YIELD: 7.9% By adding a few CEFs, BDCs and REITs, I could possibly raise that to 9.0~9.5
I agree! If I were a new investor I would watch the markets and futures reports for an indication of nearing the bottom bounce. Personally the majority of my holdings are high yield dividend income stocks. New investors need to build confidence over time and cost average into the markets. Value dividend stocks keep the cash coming in while the markets correct. There are many bargains right now: NLY, EPR, HQH, CSWC, OXLC, ECC. KNOP, ZIM and TGH (shipping will be a big winner in the next five years) GLTA!
Business development corporations. ECC, CSWC Healthcare. HQH, THW Collateralized Loan Obligation funds. OXLC, XFLT
High yield Dividend stocks will compound your earnings, also REITs and BDCs are primed now CSWC, ECC, NEWT
Dividends stocks: MAIN, CSWC, O, KO….etc Growth: APPL (also dividends) AMZN NVDA, MSFT (also pays dividend) anything related to EV like TSLA, batteries, autonomous driving…etc since US is looking to fully switch to EV in 10 years.
Basically what you are looking for is a holding company. Berkshire as you listed is the best example. One of my go to’s is CSWC but they are much smaller.
I own a BDC, ticker is MAIN..boring as hell but a total return of 53% over three years isn't bad and pays monthly dividends. The only thing not mentioned in the video is you should look for BDCs that are internally managed not externally managed, generally speaking the externally managed ones cut dividends and are shit. Some other BDCs I like are CSWC and NEWT.
RC, CEQP, SAR, CSWC, APPL These make up majority of my portfolio and have been all too kind dividend wise over the last 2 years
Closed out half of my SPY calls from two Fridays ago dip. Not quite a triple, but the rest are casinos money now, will let it ride into short holiday week. Upward bias usually. CSWC finally started moving in the right direction for me today, and with JETS and HIVE (now HVBT) both heading up, GROW (my second biggest holding now) should start moving closer to $10+.
Looking at the stocks you've picked, 100 Dollar invested in each of them (except DISCA, because its the same as DISCK) your returns are (if invested on 1st of march): * DISCK -40% * SBNY +10.75% * CSWC +4.69% * IEP -10.32% * ZBRA +3.52% * PRTA +139.32% * HAYN +18.76% With 700$ invested you would've made 826.72$ (18.1% profit). In the same period the S&P 500 did 10.1%.
CSWC pays close to 9% dividend at these prises and have been raising it each quarter for the past couple. JETS is the airline reopening trade that pulled back recently. And GROW owns JETS, under 3 P/E plus ownes a big church of HIVE if coins get sexy again. Double from here on its own, much more if coins catches a bid. And coin miners should do even better with China shutting their own down.
Also, buy GROW, JETS and CSWC here and thank me later.
JETS gets to $30, GROW will double from today's price, crypto catches a bid, GROW will be triple today's price... I'm all in GROW here mostly, the rest is in CRSR, CSWC and July SPY calls.
Good luck!! I sold half of my UWMC before it hit $10 and the other half in $10+, but I was in heavy under $8. I'm all in GROW now and a bit in CRSR and CSWC ... and SPY calls. In the red on all of them.