Forget Main Street And Hercules: 11%-Yielding Capital Southwest Is Cheaper, Safer, And Pays More
Internally managed BDCs tend to massively outperform externally managed BDCs over time. I look at why this is. I also share why CSWC is my favorite externally managed BDC right now.
Capital Southwest: 40% Premium And Recent Struggles Turn Me To 'Hold' (Rating Downgrade)
CSWC remains a top internally-managed BDC with a strong track record, but recent price recovery and premium valuation warrant caution. The portfolio's focus on first-lien debt and improving credit quality are positives, though some portfolio companies face challenges under current rates. Preliminary Q1 2026 results show improving non-accruals and stable NII, but NAV continues to edge lower, requiring close monitoring.
I'm Buying Monthly Dividends Up To 11% Yield
Monthly dividend stocks are ideal for replacing job income and/or accelerating compounding. I highlight two excellent monthly dividend stocks that stand out in their respective industries. Both carry strong balance sheets and have diversified revenue streams, making them attractive picks for income investors.
I'm Buying Income Machines With 7-11% Yields
Income investing is attractive now as high-yield stocks offer cash flow and downside protection amid frothy growth stock valuations. I highlight two companies that carry competitive advantages and strong returns on invested capital. Both have strong balance sheets and are well-positioned to deliver potentially robust shareholder returns.
Capital Southwest: Strong Resilience Through Uncertainty
I maintain my buy rating on CSWC due to its attractive valuation, high-quality portfolio, and strong dividend coverage, despite recent price declines. CSWC's portfolio is well-diversified, focused on senior secured first lien debt, and benefits from high floating-rate exposure in a higher-rate environment. Dividend yield remains enticing at 12%, now paid monthly, with ample undistributed taxable income supporting continued stable payouts and supplemental dividends.
Capital Southwest Delivers Reliable Income With Built-In Downside Protection
Capital Southwest's fundamentals remain strong, despite a recent pullback, with a 12% dividend yield fully covered by sustainable earnings and a robust UTI buffer. The company's internally managed, lower middle market strategy offers high yields, diversification, and lower costs compared to larger BDC peers. Conservative leverage, strong liquidity, and disciplined underwriting position CSWC to weather macro risks and maintain its reliable dividend.
Never Bet Against America: 11% Yield From Capital Southwest
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Capital Southwest (CSWC) Q4 2025 Earnings Conference Call Transcript
Capital Southwest (NASDAQ:CSWC ) Q4 2025 Earnings Conference Call May 15, 2025 11:00 AM ET Company Participants Amy Baker - EVP Accounting Michael Sarner - President and CEO Josh Weinstein - Senior MD and Chief Investment Officer Chris Rehberger - CFO, Treasurer and Secretary Conference Call Participants Mickey Schleien - Ladenburg Corey Johnson - UBS Erik Zwick - Lucid Capital Markets Robert Dodd - Raymond James Operator Thank you for joining today's Capital Southwest Fourth Quarter Fiscal Year 2025 Earnings Call. Participating on the call today are Michael Sarner, Chief Executive Officer, Chris Rehberger, Chief Financial Officer, Josh Weinstein, Chief Investment Officer, and Amy Baker, Executive Vice President, Accounting.
Capital Southwest (CSWC) Misses Q4 Earnings and Revenue Estimates
Capital Southwest (CSWC) came out with quarterly earnings of $0.54 per share, missing the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.66 per share a year ago.
Capital Southwest (CSWC) Crossed Above the 50-Day Moving Average: What That Means for Investors
After reaching an important support level, Capital Southwest (CSWC) could be a good stock pick from a technical perspective. CSWC surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.
Capital Southwest (CSWC) Crossed Above the 20-Day Moving Average: What That Means for Investors
Capital Southwest (CSWC) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, CSWC crossed above the 20-day moving average, suggesting a short-term bullish trend.
Capital Southwest: Stronger Than You Think, The Good And The Bad
Despite a 25% stock price drop in the past year, I believe CSWC is an attractive investment opportunity. Trump's tariffs and elevated non-accruals pose challenges, but CSWC is prepared better than it seems. CSWC's focus on lower middle-market companies with an average EBITDA of $20m makes it more vulnerable to economic downturns.
