Capital Southwest

Capital Southwest is a publiclyâ€“owned business development company with total assets of $496 million as of June 30, 2010. We provide patient capital to exceptional businesses with significant growth potential. As a public company, we have the flexibility to hold investments indefinitely, which has provided the management teams of our holdings a stable ownership platform since we were founded in 1961.  We are not a private equity firm or a venture capital firm or a fund. Capital Southwest is a business development company with a refreshingly different investment mindset.

Earnings data Q4 2021

Earnings data Q1 2022

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Earnings data Q4 2022

Earnings data Q1 2023

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Earnings data Q4 2023

Earnings data Q1 2024

Earnings data Q2 2024

Earnings data Q3 2024

Earnings data Q4 2024

Earnings data Q1 2025

Earnings data Q2 2025

Earnings data Q3 2025

CSWC reports strong Q1 2023 performance and navigates investment challenges

CSWC's Q1 2023 performance reflects robust growth and a strengthened balance sheet. While facing challenges related to rate hikes and downgraded investments, the company is well-positioned to capitalize on opportunities for NII expansion and maintaining a strong balance sheet. The outlook remains positive for the next quarter's update.

CSWC reports strong Q2 performance and anticipates solid portfolio growth

CSWC's Q2 2023 performance reflects strong financial results, with increased net investment income and total investment income. The company's robust asset base, strong credit rating, and flexible capital structure position it well for future growth. While challenges related to market volatility exist, CSWC sees opportunities for portfolio expansion and investment in high-quality deals.

Capital Southwest (CSWC) reports robust Q3 performance and strategic opportunities

Capital Southwest demonstrated strong financial performance and portfolio growth in Q3 2023, with a focus on dividend growth and maintaining a robust liquidity position.
Challenges in underwriting certain industries and navigating economic uncertainties require caution and adaptability in investment decisions.
Opportunities lie in investing in higher-quality companies, potential refinancing in 2024, and maintaining a sustainable dividend payout for investors.

Capital Southwest reports robust Q4 earnings and strategic growth outlook

Capital Southwest delivered strong financial results, showcasing growth in portfolio value and investment income, supported by a prudent dividend policy and strategic acquisitions.
While facing challenges such as interest rate fluctuations and portfolio quality concerns, the company remains well-positioned to capitalize on opportunities for NII expansion and credit rating enhancement.
By maintaining a focus on lower middle market lending and proactive balance sheet management, Capital Southwest aims to navigate uncertainties and drive sustainable growth in the upcoming quarters.
The earnings call highlighted the company's commitment to financial stability, dividend consistency, and strategic decision-making, reinforcing investor confidence in its long-term prospects.

Capital Southwest reports strong Q1 performance and growth opportunities

Capital Southwest's Q1 2024 performance showcased growth in net investment income, portfolio, and balance sheet strength.
Despite challenges in regulatory leverage and dividend distribution, the company's strong track record and credit rating position it well.
Opportunities lie in strategic investments, market expansion, and optimizing capital structure for sustained growth.
Overall, Capital Southwest's performance reflects resilience, stability, and a focus on value creation in a competitive landscape.

Capital Southwest reports strong Q2 earnings and growth opportunities

Capital Southwest delivered strong financial performance with increased income and dividend payouts.
While facing challenges such as downgraded companies and restructuring, the company remains optimistic about future prospects.
Opportunities lie in growth potential, balance sheet improvement, and enhanced income generation through portfolio yield increases.
Overall, Capital Southwest's strategic focus on lending and solid portfolio performance positions it well for future success.

Capital Southwest (CSWC) reports robust Q3 performance and growth outlook

Capital Southwest delivered a strong Q3 performance with notable increases in income metrics and NAV per share, reflecting operational excellence and financial strength.
Despite challenges from increased M&A activity and market competition, the company's focus on balance sheet strength, dividend growth, and strategic financing positions it well for future growth.
Opportunities lie in expanding commitments, stable spreads, optimizing capital structure, and leveraging PIK income for enhanced returns, signaling a positive outlook for Capital Southwest.
Analyst questions addressed key areas of concern, including M&A trends, credit quality, leverage targets, and dividend outlook, providing insights into the company's strategic direction and financial health.

Capital Southwest (CSWC) posts robust Q4 performance amidst market challenges

Capital Southwest (CSWC) delivered strong financial results in Q4 2024, marked by portfolio growth, increased dividends, and successful capital raising activities. While facing challenges in a competitive market environment, the company maintains a focus on conservative leverage and operational efficiency. Looking ahead, opportunities lie in strategic partnerships and organic growth initiatives.

Capital Southwest reports robust Q1 performance and strategic growth outlook

Capital Southwest's Q1 2025 performance reflects strong income generation, active portfolio management, and robust capital raising capabilities.
The company's strengths lie in its conservative financial approach, consistent dividend growth, and exposure to equity upside for shareholders.
While facing challenges in balancing risk management and potential returns, Capital Southwest has opportunities for portfolio expansion, market positioning, and capital protection.
Investors should note the company's solid performance, financial stability, and strategic positioning for long-term growth and value creation.

Capital Southwest reports robust Q2 performance amidst competitive lending landscape

Capital Southwest delivered strong performance in Q2 2025, navigating challenges from competitive lending environments. The company's strategic focus on dividend growth, credit performance, and capital access positions it well for future growth and investment opportunities.

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Capital Southwest offers a well-covered, double-digit dividend. The portfolio has very defensive characteristics.

Capital Southwest: A Quality 11.4% Yield With A Reasonable Valuation

Capital Southwest grew NII by 48% and total Investment Income by 32% in the quarter ending 9/30/22. Capital Southwest's regular quarterly dividend yield is 11.46%. Plus the supplemental dividend adds another 1.1%. Total yield = 12.56%.

Capital Southwest: 11% Yield, 19% Dividend Growth, Higher Rates = Strong Growth

CSWC is a well-run BDC with a highly fragmented and less competitive lower middle market focus. It continues to demonstrate improving operating leverage and is growing its dividend.

Capital Southwest: Price Dislocation Spells Opportunity

Underwriters Fully Exercise Option to Purchase Additional Shares Underwriters Fully Exercise Option to Purchase Additional Shares

Capital Southwest Corporation Closes Public Offering of Common Stock

DALLAS, Nov. 16, 2022 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced an increase to its senior secured revolving credit facility (the “Credit Facility”). The Credit Facility was increased under the existing accordion feature by $20 million, bringing the total commitments from $380 million to $400 million. The $20 million increase was provided by one existing lender and one new lender, bringing the total bank syndicate to 11 participants.

Capital Southwest Increases Credit Facility to $400 million

DALLAS, Nov. 15, 2022 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (NASDAQ: CSWC) (the “Company” or “Capital Southwest”) announced that it has priced an underwritten public offering of 2,203,857 shares of its common stock at a public offering price of $18.15 per share. Capital Southwest has also granted the underwriters a 30-day option to purchase up to 330,579 additional shares of its common stock. The completion of the offering is subject to customary closing conditions. The shares of common stock are expected to be delivered on November 17, 2022.

Capital Southwest Corporation Prices Public Offering of Common Stock

DALLAS, Nov. 14, 2022 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (NASDAQ: CSWC) (the “Company” or “Capital Southwest”) today announced that it has commenced an underwritten public offering of shares of its common stock of approximately $46.0 million. In connection with the proposed offering, the Company intends to grant the underwriters a 30-day option to purchase additional shares of its common stock. All of the shares of common stock to be sold in the offering are to be sold by the Company. The offering is subject to general market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the size or terms of the offering.

Capital Southwest Corporation Announces Offering of Shares of Common Stock

Capital Southwest boasts a solid portfolio of senior level, floating rate loans as well as equity positions in many of these portfolio companies. The BDC's record of generating an average IRR of 14%+ on loan exits since 2015 demonstrates strong underwriting and execution of investments.

Capital Southwest: A 10.7% Yield From Strong, Floating Rate Loans

Oxford Lane Capital

Rate hikes have come and are still coming. We aim to have a rate-agnostic portfolio – benefitting from either change.

Interest Rate Hikes? The More The Merrier!

Capital Southwest Corp (NASDAQ:CSWC ) Q2 2023 Earnings Conference Call November 1, 2022 11:00 AM ET Company Participants Chris Rehberger - VP, Finance & Treasurer Bowen Diehl - President, CEO & Director Michael Sarner - CFO Conference Call Participants Kevin Fultz - JMP Securities Mickey Schleien - Ladenburg Thalmann & Co. Kyle Joseph - Jefferies Robert Dodd - Raymond James & Associates Operator Thank you for joining today's Capital Southwest Second Quarter Fiscal Year 2023 Earnings Call. Participating on the call today are Bowen Diehl CEO; Michael Sarner, CFO; and Chris Rehberger, VP, Finance.

Capital Southwest Corp (CSWC) Q2 2023 Earnings Call Transcript

Capital Southwest (CSWC) delivered earnings and revenue surprises of -1.89% and 3.84%, respectively, for the quarter ended September 2022. Do the numbers hold clues to what lies ahead for the stock?

Capital Southwest (CSWC) Misses Q2 Earnings Estimates

CSWC Reports Pre-Tax Net Investment Income of $0.54 Per Share for Quarter Ended September 30, 2022 CSWC Reports Pre-Tax Net Investment Income of $0.54 Per Share for Quarter Ended September 30, 2022

Capital Southwest Announces Financial Results for Second Fiscal Quarter Ended September 30, 2022

We take a look at Capital Southwest - a strong performer in the BDC sector, trading at a 12.2% regular dividend yield (15.7% total dividend yield). CSWC spent most of 2021 trading at a ridiculously high valuation which has now deflated to a more sensible level of a 3% premium to book.

Capital Southwest: This High-Yielding BDC Is No Longer Ludicrously Expensive

CSWC is a quality BDC with a strong growth trajectory, and is underappreciated compared to its peers. Its operating structure continues to trend towards higher efficiency.

Capital Southwest: Undervalued High Yield

DALLAS, Oct. 26, 2022 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest,” the “Company” or “we”) (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 a supplemental dividend of $0.05 per share. This supplemental dividend is in addition to the previously announced regular dividend of $0.52 per share, resulting in total dividends of $0.57 per share for the quarter ending December 31, 2022.

Capital Southwest Announces Supplemental Dividend of $0.05 per share for the Quarter Ending December 31, 2022

Recent share price weakness means Capital Southwest now sports a 12% dividend yield fully covered by earnings. The company recently raised its quarterly payout by 4% on the back of rising net interest income.

Capital Southwest: Backing Up The Truck Into This Internally Managed BDC Yielding 12%

PIMCO Dynamic Income Fund

The market is offering a limited time sale on many great income picks. The best part of a market drop or sale, is that they don't last forever.

Enjoy These Income Bargains - They Will Not Last Forever

DALLAS, Oct. 07, 2022 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest,” the “Company” or “we”) (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 its preliminary operating results for the second quarter of its 2023 fiscal year (quarter ended September 30, 2022) and its second quarter 2023 earnings release and conference call schedule.

Capital Southwest Announces Preliminary Estimate of Second Quarter 2023 Operating Results and Earnings Release and Conference Call Schedule

Blackstone Secured Lending Fund

TCG BDC

Fidus Investment

Oaktree Specialty Lending

Trinity Capital

We take a look at the action in BDCs through the fourth week of September and highlight some of the key themes we are watching. BDCs had a tough week as markets wobbled under hawkish Fed commentary.

BDC Weekly Review: Price Jumps On Dividend Hikes Reveal Sector Inefficiency

BDCs have come under pressure in recent months, despite the fact that rising rates will make them more profitable. Capital Southwest has a low-risk portfolio and trades at a discount to its historic valuation.

Capital Southwest: Opportune High-Yield Pick At Current Prices

DALLAS, Sept. 20, 2022 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest,” the “Company” or “we”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced its Board of Directors (the “Board”) has declared a quarterly dividend of $0.52 per share for the quarter ending December 31, 2022.

Capital Southwest Announces Increase in Quarterly Dividend to $0.52 per Share for the Quarter Ending December 31, 2022

BrightSpire Capital

Inflation and the rising cost of living need to be met with more income. You can grow your income in two main routes as a dividend investor.

My Dividends Keep Getting Raised!

Capital Southwest's solid investment portfolio leveraging first lien debt has helped it to weather an increasingly hawkish Fed. In addition, it has benefited tremendously from its interest income tailwinds. However, it remains nearly 40% below its 2021 highs as the market parses the impact on its NAV, despite its highly diversified portfolio companies.

Capital Southwest: Highly Robust Dividend Yield Alongside A Hawkish Fed

Ares Capital

Barings BDC Inc

FS KKR Capital Corp

Hercules Capital

Interest rates are headed higher, and despite chatter that the Federal Reserve efforts may slow in September, that will depend on when inflation decides to pause.

6 ‘Strong Buy' Commercial Finance Stocks That Pay Generous and Dependable Dividends

CSWC yields 9.42%; management raised the next quarter's regular dividend to $.50. CSWC benefits from rising rates.

News for Capital Southwest Stock (CSWC)