Capital Southwest Corporation (NASDAQ:CSWC) is included among the 15 Extreme Dividend Stocks to Buy According to Hedge Funds.
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On November 4, Clear Street upgraded Capital Southwest Corporation from Hold to Buy while keeping its price target steady at $22, as reported by the Fly.
The firm described the recent quarter as another strong performance that demonstrates the company’s resilient earnings capacity and disciplined underwriting approach. Clear Street added that the company continues to comfortably cover its regular dividend through net interest income, supported by stable earnings, strong credit quality, and upcoming strategic growth opportunities.
In its third-quarter 2025 results, President and CEO Michael Sarner noted that Capital Southwest Corporation realized $44.8 million in gains from equity exits, which drove an increase in undistributed taxable income per share from $0.64 in September 2024 to $1.13. The board approved regular monthly dividends totaling $0.58 per share for the October–December period, along with a supplemental dividend of $0.06 per share, bringing total dividends for the quarter to $0.64.
During the quarter, the company also raised around $40 million in equity through its at-the-market program at an average share price of $22.81.
Capital Southwest Corporation is an internally managed business development company that offers tailored debt and equity financing solutions to US middle-market firms.
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