What is the yield on cost (YOC) for Capital Southwest Corporation (CSWC)?

The yield on cost (YOC) for CSWC stock is 10.86%.

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Capital Southwest Corporation(CSWC)

Asset Management · Dallas, TX

$23.57+0.05 (+0.21%)

Delayed quote: Oct 5, 2026, 4:00 PM EDT

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Yield on Cost (YOC): 10.86%

Basis: Trailing twelve months (TTM). Source: stored company filings and market data; unavailable inputs remain N/A.

The yield on cost (YOC) is 10.86%.

CSWC Yield on Cost (YOC) Metrics

YIELD ON COST (YOC)

10.86%

Yield on Cost for CSWC

CSWC now pays $2.56 per share a year. Measured against the price it actually traded at back then, a long-term holder is earning:

If you bought	Price then	Yield on cost today
10 years ago(2016-10-04)	$14.61	17.52%
5 years ago(2021-09-30)	$25.18	10.17%
3 years ago(2023-10-03)	$21.67	11.81%
1 year ago(2025-10-07)	$20.93	12.23%
Buying today(at $23.57)	$23.57	10.86%

If you buy today and the dividend keeps growing

Projection: starting from today's 10.86% yield, assuming the dividend keeps compounding at -3.1% a year — the recent growth rate of its annual payout. Boards set dividends each year, so actual figures will differ.

Today

10.86%

In 3 years

9.88%

In 5 years

9.27%

In 10 years

7.92%

Yield on Cost Calculator

Try your own purchase price, dividend and growth rate for Capital Southwest Corporation (CSWC).

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Customize parameters to project your custom Yield on Cost.

Purchase Price ($)$23.57

Annual Dividend ($)$2.56

Div. Growth Rate (% YoY)-5.59%

Holding Horizon (Years)15 Years

Starting Yield

10.86%

Ending YOC

4.58%

Year 15 Dividend

$1.08

Cum. Dividends Recd.

$24.99

Yield on Cost Progression Graph

Detailed Projections Ledger

Year-by-year table outlining compounding dividend returns on your purchase cost basis.

Year	Projected Div. / Share	YoY Dividend Hike	Yield on Cost (YOC)	Total Dividends Recd.
Initial	$2.56	N/A	10.86%	$0.00
Year 1	$2.42	-5.59%	10.25%	$2.42
Year 2	$2.28	-5.59%	9.68%	$4.70
Year 3	$2.15	-5.59%	9.14%	$6.85
Year 4	$2.03	-5.59%	8.63%	$8.89
Year 5	$1.92	-5.59%	8.15%	$10.81
Year 6	$1.81	-5.59%	7.69%	$12.62
Year 7	$1.71	-5.59%	7.26%	$14.33
Year 8	$1.62	-5.59%	6.86%	$15.95
Year 9	$1.53	-5.59%	6.47%	$17.47
Year 10	$1.44	-5.59%	6.11%	$18.91
Year 11	$1.36	-5.59%	5.77%	$20.27
Year 12	$1.28	-5.59%	5.45%	$21.56
Year 13	$1.21	-5.59%	5.14%	$22.77
Year 14	$1.14	-5.59%	4.85%	$23.91
Year 15	$1.08	-5.59%	4.58%	$24.99

Yield on Cost (YOC) Formula & Definition

Yield on cost is the dividend yield measured against your original purchase price, not today's price. As a company raises its dividend, the yield on what you actually paid keeps rising even when the market yield holds steady.

Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute

Yield on Cost (YOC) FAQ

What is the yield on cost (YOC) for Capital Southwest Corporation (CSWC)?: The yield on cost (YOC) for CSWC stock is 10.86%.

About Capital Southwest Corporation

Capital Southwest Corporation operates as a business development company (BDC), specializing in credit, private equity, and venture capital investments focused on middle market companies throughout the United States. The firm engages across various investment stages, including mezzanine financing, later-stage and mature businesses, late venture, emerging growth enterprises, buyouts, recapitalizations, and growth capital funding. The company explicitly refrains from investing in startups, publicly traded entities, real estate developments, project finance opportunities, oil and gas exploration ventures, troubled companies, turnaround situations, or businesses facing significant departures of senior management. Within the lower middle market, Capital Southwest provides capital for growth initiatives, bolt-on and new platform acquisitions, refinancing, dividend recapitalizations, and both sponsor-led and management buyouts. Its investment structures are diverse, encompassing Unitranche debt, subordinated debt, senior debt, first and second lien debt, alongside preferred and common equity. The firm also participates in equity co-investments alongside its debt financing, taking non-controlling stakes up to 20% of the total transaction value. Investment criteria for target companies include revenues exceeding $10 million, consistent profitability, and a historical annual growth rate of at least 15%. For lower middle market opportunities, the firm typically seeks businesses with less than $15 million in EBITDA, while also opportunistically considering upper middle market ventures, generally defined as companies with EBITDA greater than $50 million. Capital Southwest strategically focuses its investments within several key industry sectors: Industrial manufacturing and services Value-added distribution Healthcare products and services Business services Specialty chemicals Food and beverage Tech-enabled services and SaaS models More specifically, the firm seeks opportunities in: Energy services and products: This segment includes all industry facets (upstream, midstream, downstream) with the exclusion of direct exploration and production. Focus areas encompass differentiated products and services, equipment and tool rentals, consumable products, and drilling and completion chemicals. Industrial technologies: Covering automation and process controls, handling and packaging equipment, industrial filtration and fluid handling, measurement, monitoring, and testing solutions, professional tools, and sensors and instrumentation. Specialty chemicals and products: This segment targets businesses involved in the development and manufacture of highly differentiated products such as adhesives, coatings, sealants, catalysts, absorbents, cosmeceuticals, fine chemicals, flavors, fragrances, performance lubricants, polymers, plastics, composites, chemical dispensing and filtration equipment, professional and industrial trade consumables and tools, engineered solutions for HVAC, plumbing, and electrical installations, and specified high-performance materials for fire protection and oilfield applications. Additionally, the firm considers exceptional opportunities within building products. Beyond direct investments, Capital Southwest allocates capital to syndicated first and second lien term loans in the upper middle market. The criteria for these syndicated loans include: First Lien: Companies with EBITDA over $30 million, closing leverage exceeding 4x, an investment hold size between $5 million and $7 million, and an investment yield greater than 6.5%. Second Lien: Companies with EBITDA surpassing $50 million, closing leverage above 6x, an investment hold size between $5 million and $7 million, and an investment yield exceeding 9%. The firm's investment sizes typically range from $5 million to $25 million for securities generally. Specifically, equity investments can range from $5 million to $50 million, while debt investments typically fall between $5 million and $20 million. Co-investment transaction sizes can extend up to $40 million. While its equity co-investments are exclusively non-controlling, the firm generally maintains flexibility in taking both majority and minority positions across its investment portfolio. Capital Southwest has the capacity to hold investments for extended periods and may also utilize warrants as an investment mechanism. The firm prioritizes obtaining Board representation in its portfolio companies. Capital Southwest Corporation was established on April 19, 1961, and is headquartered in Dallas, Texas.

Dallas, TX

36 employees

www.capitalsouthwest.com

Financial Services / Asset Management

Sector: Financial Services
Industry: Asset Management
CEO: Michael Scott Sarner

View full financials

Yield on Cost (YOC): 10.86%

CSWC Yield on Cost (YOC) Metrics

Yield on Cost for CSWC

If you buy today and the dividend keeps growing

Yield on Cost Calculator

Yield on Cost (YOC) Formula & Definition

Yield on Cost (YOC) FAQ

Related Metrics

Yield on Cost (YOC): 10.86%

CSWC Yield on Cost (YOC) Metrics

Yield on Cost for CSWC

If you buy today and the dividend keeps growing

Yield on Cost Calculator

Yield on Cost (YOC) Formula & Definition

Yield on Cost (YOC) FAQ

Related Metrics