Capital Southwest: I Went To Dallas For This Safe 11% Dividend Yield Paid Monthly

Pacifica Yield13.74K FollowersFollow5ShareSavePlay(7min)Comments(5)SummaryCapital Southwest offers a secure, double-digit dividend yield, underpinned by positive momentum with originations and a 103% coverage of the base dividend.CSWC’s dividend safety rests on robust origination momentum, low non-accrual rates, and a premium to NAV, supporting ongoing portfolio expansion.With 95% floating-rate loans, CSWC faces modest NII sensitivity to Fed cuts, but minimal software exposure shields it from AI-driven credit fears.I rate CSWC a buy, citing resilient income, prudent credit positioning, and continued NAV growth despite sector-wide dividend cut pressures. Art Wager/E+ via Getty Images Capital Southwest (CSWC) offers a covered double-digit dividend yield, paid monthly, in an increasingly uncertain space for income investors as a result of Fed rate cuts. The income is the prize from this Dallas-based business developmentThis article was written byPacifica Yield13.74K FollowersFollowThe equity market is a powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. Pacifica Yield aims to pursue long-term wealth creation with a focus on undervalued yet high-growth companies, high-dividend tickers, REITs, and green energy firms.Analyst’s Disclosure: I/we have a beneficial long position in the shares of CSWC, HTGC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.