Capital Southwest Corp

Stock

ISIN: US1405011073

Ticker: CSWC

US1405011073

CSWC

Price

Discussion about CSWC

Posts

András A.

@Spinat

4Mon·

Portfolio feedback requested

I (early 50s, so still a good 15 years to work on the portfolio) would like to hear your opinion. I've been with Trade Republic since January, mainly because of the 4%. But then I started saving a few ETFs, then buying and selling a few shares. So I played around. At the moment my portfolio has three or rather four different parts. Let's put it this way, the family treasury has given me around €10k to play with. The rest remains in call money.

Of this 10K I would like to have a part to play, individual stocks, §IWDA, other ETFs that are close to me because of my work, XRP.

But that's not my topic here.

I want to build a dividend portfolio. Reduce working hours or improve pension, we'll see where the journey takes me. For now, I would reinvest all payouts.

The composition from December would look like this:

$MCD (-4.77%) 15%

$O (-2.42%) 9%

$TGT (+1.89%) 3,5%

What do you think about the composition? Should something go in/out?

My aim would be to distribute the monthly distributions evenly. I'll have to play around with the ratios a bit.

My problem is that the months of January, February, April and May look too poor. What would you suggest that pays out in these months?

Roast me!

29 Comments

Epi@Epi

4Mon

Oh dear, where to start? Your plan is full of typical beginner's mistakes. Sorry.
Example :

10k does nothing for your pension. Especially if they are invested defensively. 5% divs make 40€pM. You're wasting more of your life on the subject!

Dividend strategy, especially after monthly distributions, is rubbish in terms of performance. Underperformance under all scenarios.

Fees, diversification, risk profile - all suboptimal in your proposal.

My guess is that your Ministry of Finance is against investing in the capital market because it fears risk like the devil fears holy water or it simply sees your lack of experience. Basically, however, it has no understanding or even interest in the topic. This, together with your desire for peace and your own lack of experience, ties your hands and you look for a strategy that will show immediate success and increase the family income. That's why you're pursuing the irrational strategy.

My tip in this situation: take a look at the 200-day strategy and portfolio concepts. Above all, you can use them to reduce risk. Explain what you find there to the Ministry of Finance or, even better, involve it in your learning process until it gains confidence. Then you can significantly increase the portfolio amount to a sensible level and pursue a rational, high-return, low-risk strategy, e.g. MSCIWorld + gold + 200-day strategy = 8%pa under 20% drawdown.

Good luck! 👍

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Mikee

@Mikesam0416

7Mon·

I seek good div payer. Given i am over 55… @Ijlal24 I compare div pay out and returns. For financials in asset management excluding the big banks like $JPM (-7.37%) or $BLK , $CSWC (-8.11%) came out on top in terms of div payout. Example invest 10k in these banks in the image, u can see $CSWC (-8.11%) pays the most. Just my sharing.

3 Comments

U D.@market_analyst_466

7Mon

Wow. Just had a quick look at the data. I am not at all convinced. What did they invest in this year? They have a negative cash flow, dividend pay out quote is at 147%. But all analysts think it is a good investment. Do you have anymore background information? Without it, I would go on searching.

What about $KKR instead?

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Yannik

@BottomTopInvest

2Yr·

When I first bought the stock, I intended to increase the size of this position by buying more shares. Due to the return of the price and the soon upcoming ex-dividend day with an extra dividend on top, I have decided to buy this U.S. stock now below my previous purchase price and to increase my existing shares in this company.

07.06

Capital Southwest Corp

Bought at $22.00

Yannik

@BottomTopInvest

3Yr·

I bought 43 shares in Capital Southwest Corporation today.

I think the dividend and the valuation are good, which is why I took a punt. In view of rising interest rates, I think additional money should flow into the company. I plan to further expand the position in the future.

18.03

Capital Southwest Corp

Bought at $23.50