Capital Southwest Corporation (CSWC): Examining the Performance of This Rising BDC Dividend Stock

Capital Southwest Corporation (NASDAQ:CSWC) is included among the 11 Best BDC Stocks to Buy Now.

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Capital Southwest Corporation (NASDAQ:CSWC) is based in Texas and focuses on lending to smaller, growing businesses that sit in the lower middle market. It’s not a widely talked-about stock, but over the years, the company has quietly built a record of steady financial growth and solid management discipline.

In the first quarter of its 2026 fiscal year, Capital Southwest Corporation (NASDAQ:CSWC) highlighted that its balance sheet kept getting stronger, while its overall risk levels continued to drop. The company also mentioned that deal activity had been picking up noticeably, and management expects to stay active on the lending front through the September quarter.

In a move meant to make its payout policy more appealing to investors, Capital Southwest Corporation (NASDAQ:CSWC) switched its dividend from quarterly to monthly payments starting in July. By late August, it had declared a monthly dividend of $0.1934 per share, along with a quarterly supplemental payout of $0.06. As of October 5, the stock’s dividend yield stood at around 10.3%.

During the same period, Capital Southwest Corporation (NASDAQ:CSWC) brought in roughly $42 million through its Equity ATM Program. Earlier in the year, in April 2025, it expanded its Corporate Credit Facility by another $25 million, bringing the total to $510 million. It also secured a second SBIC license from the US Small Business Administration— steps that give it more flexibility and room to grow its lending business.

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