Capital Southwest

CSWC

Market cap $1.23B

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DALLAS, Nov. 19, 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 that its Board of Directors has declared monthly regular dividends of $0.1934 per share for each of January, February and March 2026 and a quarterly supplemental dividend of $0.06 per share payable in March 2026, each of which is detailed in the table below. The Company's regular monthly dividends for the quarter ending March 31, 2026 will be payable as follows: Declared Ex-Dividend Date Record Date Payment Date Amount Per Share 11/19/2025 1/15/2026 1/15/2026 1/30/2026 $0.1934 11/19/2025 2/13/2026 2/13/2026 2/27/2026 $0.1934 11/19/2025 3/13/2026 3/13/2026 3/31/2026 $0.1934 The Company's quarterly supplemental dividend for the quarter ending March 31, 2026 will be payable as follows: Declared Ex-Dividend Date Record Date Payment Date Amount Per Share 11/19/2025 3/13/2026 3/13/2026 3/31/2026 $0.06 Total Regular Dividends per Share for Quarter Ending March 31, 2026: $ 0.58 Total Supplemental Dividend per Share for Quarter Ending March 31, 2026: $ 0.06 Total Dividends per Share for Quarter Ending March 31, 2026: $ 0.64 When declaring dividends, the Board of Directors reviews estimates of taxable income available for distribution, which may differ from net investment income under generally accepted accounting principles.

The Fed's dovishness has been the key driver for the BDC sell-off. The idea is that lower interest rates should lead to lower dividends (i.e., BDCs cutting their dividend across the board). While it is a process that takes time, the current data show that many BDCs are well-positioned to safeguard their existing dividends.

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Capital Southwest stands out among business development companies for its strong fundamentals, robust liquidity, and healthy balance sheet despite sector headwinds. CSWC's latest earnings beat estimates, with net investment income comfortably covering the dividend and portfolio growth supporting top-line gains. The BDC's low leverage, well-staggered debt maturities, and significant equity investments provide flexibility to withstand potential interest rate cuts.

TriplePoint Venture Growth BDC Corp. is a comeback BDC (+16% yield) trading at a deep discount. Capital Southwest is a premium BDC growing thanks to its premium. Buy both BDCs to diversify income.

Capital Southwest is a high-yield BDC offering a 12% dividend, supported by a conservatively managed, first-lien-heavy credit portfolio. CSWC's dividend is well-covered by net investment income and undistributed taxable income, with low non-accruals and strong deal flow. The internal management structure drives cost efficiency, resulting in strong earnings power and justifying CSWC's premium to book value.

Capital Southwest ( CSWC ) Q2 2026 Earnings Call November 4, 2025 11:00 AM EST Company Participants Amy L. Baker Michael Sarner - President & CEO Josh Weinstein - Senior MD & Chief Investment Officer Chris Rehberger - CFO, Treasurer & Secretary Conference Call Participants Brian Mckenna - Citizens JMP Securities, LLC, Research Division Douglas Harter - UBS Investment Bank, Research Division Mickey Schleien Erik Zwick - Lucid Capital Markets, LLC, Research Division John Hecht - Jefferies LLC, Research Division Robert Dodd - Raymond James & Associates, Inc., Research Division Presentation Operator Thank you for joining today's Capital Southwest Second Quarter Fiscal Year 2026 Earnings Call.

Capital Southwest (CSWC) came out with quarterly earnings of $0.57 per share, missing the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.66 per share a year ago.