5 Under-the-Radar High Dividend Stocks to Buy Now

1. Capital Southwest Corporation (NASDAQ:CSWC)

Dividend Yield as of March 18: 11.74%

On March 16, Capital Southwest Corporation (NASDAQ:CSWC) and Trinity Capital announced the formation of a joint venture. The new entity will focus on investing in first-out senior secured debt opportunities in the lower middle market.

The venture will be owned equally by both firms. Each will commit $50 million and hold a 50% equity stake. Investment and operational decisions will be handled by a board of managers, with equal representation from both sides. The joint venture is also expected to use leverage through a senior-secured credit facility. Borrowings from that facility will be used to fund its investment portfolio. Michael Sarner, Chief Executive Officer of Capital Southwest, made the following statement:

“We’re excited about the opportunity to partner with Trinity Capital and believe this vehicle will enable Capital Southwest to compete across a broader spectrum of investment opportunities. We expect this joint venture with Trinity Capital to enhance CSWC’s ability to compete for and win high-quality lower middle market opportunities by providing more flexible capital solutions, all while maintaining portfolio granularity and expanding the range of platform companies we can pursue.”

Capital Southwest Corporation (NASDAQ:CSWC) is based in Dallas, Texas, and operates as an internally managed business development company. As of December 31, 2025, it held about $2.0 billion in investments at fair value. The firm focuses on middle market lending, supporting acquisitions and growth for businesses through investments ranging from $5 million to $50 million. These include first lien, second lien, and non-control equity co-investments.

While we acknowledge the potential of CSWC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CSWC and that has 100x upside potential, check out our report about the cheapest AI stock.

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