Key Highlights

  • Capital Southwest's $0.1934 October monthly dividend has an October 15, 2026 ex-dividend date and is payable October 30.
  • The board declared a $0.58 regular quarterly dividend for the December quarter plus a $0.06 supplemental dividend, totaling $0.64 per share.
  • First-fiscal-quarter pre-tax net investment income was $35.0 million, or $0.57 per weighted average common share.
  • Net asset value was $16.61 per share versus $16.69 in the prior quarter, with total net assets of $1,058.5 million.

Capital Southwest's (NASDAQ:CSWC) $0.1934 monthly dividend yields 9.88% and sits beside first-fiscal-quarter pre-tax net investment income of $0.57 per share. The board declared it on August 27, 2026 as part of a $0.58 regular quarterly dividend and a $0.06 supplemental dividend for the quarter ending December 31, 2026.

Dividend Program and Shareholder Returns

Capital Southwest's board declared a regular quarterly dividend of $0.58 per share for the quarter ending December 31, 2026, paid as $0.1934 per share in each of October, November and December. The October dividend has a record date of October 15 and a payment date of October 30. The November dividend is payable November 30 to holders of record November 13, and the December dividend is payable December 31 to holders of record December 15.

The board also declared a $0.06 per share supplemental dividend payable December 31, 2026 to holders of record December 15. Total dividends for the quarter are $0.64 per share.

For the quarter ending September 30, 2026 the board declared on May 27 a $0.58 regular dividend, paid as $0.1934 in each of July, August and September, and a $0.06 supplemental dividend payable September 30. In the quarter ended June 30, 2026 the company paid $0.64, comprising $0.58 regular and $0.06 supplemental.

About the Company

Capital Southwest is an internally managed business development company based in Dallas, Texas, focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses. Its total investment portfolio had a fair value of $2.2 billion at June 30, 2026.

Financial Performance Behind the Payout

For the quarter ended June 30, 2026, the first quarter of fiscal 2027, total investment income was $61.0 million versus $57.8 million in the prior quarter. Pre-tax net investment income was $35.0 million, or $0.57 per weighted average common share, versus $35.2 million. Net investment income after taxes was $35.7 million, or $0.58 per basic share.

Net realized and unrealized losses on investments were $10.9 million versus $7.1 million. The net increase in net assets resulting from operations was $24.7 million versus $27.5 million, or $0.40 per basic share.

Net asset value was $16.61 per share versus $16.69, and total net assets were $1,058.5 million. Estimated undistributed taxable income was $0.87 per share.

Originations, Equity Issuance and Credit

The company originated $222.3 million of new commitments across 11 new portfolio companies and 16 existing portfolio companies. The credit portfolio had a fair value of $2.0 billion, 99% first lien senior secured debt, with a weighted average yield on debt investments of 10.9%. Non-accruals had a fair value of $23.4 million, representing 1.1% of the total investment portfolio.

Under its equity at-the-market program the company sold 2,708,438 shares at a weighted-average price of $23.47 per share, raising $63.6 million of gross proceeds. The company stated that the NAV decrease was primarily due to restricted stock awards and net realized and unrealized losses, partly offset by issuing common stock at a premium to NAV. The regulatory debt to equity ratio was 0.91 to 1.

Outlook

The company's board has declared regular dividends of $0.1934 per share for each month through December 2026 and a $0.06 supplemental dividend for December. The company states that when declaring dividends its board reviews estimates of taxable income, which may differ from net investment income.