Know the company
Company overview
Capital Southwest lends to private businesses and can also invest alongside them through equity. Loan interest and fees form the recurring income stream; equity returns may add value but arrive less regularly. Borrowing and operating costs come out before net investment income can support a dividend. The performance of individual borrowers matters because a loan that stops paying reduces that income.
- Business
- BDC
- Listing
- CSWC · XNAS
- Reporting period
- 2026-06-30
- Dividend schedule
- Monthly
How the business works
Capital Southwest’s distribution capacity starts with cash interest and other income from its lending portfolio. A larger portfolio, higher asset yields, and stable credit performance can support net investment income, while rising funding costs, repayments without prompt reinvestment, non-accruals, and credit losses can reduce it. Because the annual distribution is above the current annual net investment income figure, income investors should also assess whether supplemental distribution amounts are supported by retained taxable income, realized gains, or future improvement in recurring earnings.
Capital Southwest Corporation: 10-Q supporting reported earnings