CSWC Stock Recent News

Capital Southwest's fundamentals remain strong, despite a recent pullback, with a 12% dividend yield fully covered by sustainable earnings and a robust UTI buffer. The company's internally managed, lower middle market strategy offers high yields, diversification, and lower costs compared to larger BDC peers. Conservative leverage, strong liquidity, and disciplined underwriting position CSWC to weather macro risks and maintain its reliable dividend.

Inflation keeps eroding our wealth. Even at low levels, it's relentless. I'm focused on stocks, real estate, and floating-rate debt to fight back. I highlight two high-yielding stocks I'd buy if I were living off dividends. One is a REIT thriving on inflation. The other one is a BDC built for higher rates. Both stocks offer strong income, solid balance sheets, and attractive long-term potential. For income investors, these are hard to ignore.

DALLAS, June 11, 2025 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, is pleased to announce a change to its regular dividend payment frequency from quarterly to monthly beginning in July 2025.

I focus on the payback period and high-yield income, highlighting Hercules Capital and VICI Properties for faster capital recoupment and strong recurring income. HTGC stands out with a 10.4% yield, first-lien senior secured loans, robust credit ratings, and a well-covered dividend. VICI offers a 5.4% yield, stable triple-net leases with blue-chip tenants, and a strong balance sheet, supporting reliable income and growth.

We all learn over time. Some of us more than others. The agency mortgage REIT price-to-book ratios are getting really high, except for the weaker ones. That doesn't make the weak ones a great bargain. Main Street Capital stands out among BDCs for superior management and NAV growth, but that valuation just refuses to come down.

Buying right and holding tight can be a winning investment strategy over in-vogue short-term strategies. EPD has strong fee-based earnings, strong balance sheet, and growth projects coming online, offering a 6.8% yield and potential for double-digit total returns. CSWC excels in the lower middle market with an internally managed structure, low expenses, and an 11% yield, supporting regular and special dividends.

We take a look at the action in business development companies through the fourth week of May and highlight some of the key themes we are watching. BDC sector pulled back 2% this week, but remains up 2.5% month-to-date; valuations are about 5% below historic averages. Despite headlines of credit stress, BDC portfolios' interest income continues to offset markdowns and non-accruals, supporting solid total NAV returns.

Big dividends sound great, but how about big losses? Since Q2 2025 began, book values got smacked. Not talking about share prices. You can tell if the share price declined (hopefully). That would be a worthless article. One of these high-yield sectors has been doing much better than the others.

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Capital Southwest stands out among BDCs for its strong fundamentals, defensive posture, and ability to navigate lower base rates and economic uncertainty. Despite a decline in net investment income, CSWC's undistributed taxable income, equity portfolio, and new SBIC license provide confidence in maintaining the base dividend. The BDC's low leverage, robust liquidity, and recent credit rating upgrade reinforce its financial strength and resilience in a potential downturn.