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.