CSWC Switches To Monthly Dividends: Plus Continued Supplementals
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After the markets closed yesterday, Capital Southwest ( CSWC 0.00%↑ ) announced a change to its regular dividend payment frequency from quarterly to monthly at $0.1934 per share for July, August, and September 2025 and a quarterly supplemental dividend of $0.06 per share payable in September 2025.
Michael Sarner, President and Chief Executive Officer: “We believe that transitioning to a monthly regular dividend is a shareholder friendly initiative which will benefit all shareholders of Capital Southwest. We are pleased with the strong earnings generation and credit quality of our portfolio, which allows us to continue to distribute significant recurring dividends to our shareholders.”
CSWC was previously paying $0.5800 per quarter, which will be $0.5802 for Q3 2025, and the $0.06 per share supplemental was already expected through 2025, and discussed in the recent CSWC Deep Dive report.
It is important to note that certain investors prefer a monthly payment, and this will likely have a positive impact on the stock price over the coming weeks/months. BDCs such as GLAD and MAIN are continually overpriced and currently have the lowest dividend yields at 7.3% and 7.4%, respectively. MAIN's yield includes its supplemental dividends compared to CSWC at 12.1%, even though they invest in many of the same companies.
CSWC is already a full position for me, and I would highly suggest making purchases if you have been wanting to build this position, as there will likely be a bunch of news releases and articles pumping the stock (selling to retirees) over the coming weeks.