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Capital Southwest Confirms Final 2025 Dividend Tax Treatment

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Capital Southwest Confirms Final 2025 Dividend Tax Treatment

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Capital Southwest ( (CSWC) ) has issued an update.

On January 30, 2026, Capital Southwest Corporation announced the final U.S. federal income tax treatment of its 2025 dividends, confirming that the $2.56 per share in dividends attributable to the tax year ended December 31, 2025 were classified as 100% ordinary income, including net short-term capital gains. Of this ordinary income, 73.89% is taxed as ordinary income and 26.11% as qualified dividends, a breakdown that will guide shareholders’ tax reporting and supersedes prior estimates for 2025. The company also highlighted that approximately 82.55% of its 2025 dividends relate to interest and short-term capital gains, information that is particularly relevant for non-U.S. shareholders in assessing potential exemptions from U.S. withholding tax and any related refund claims with the Internal Revenue Service.

The most recent analyst rating on (CSWC) stock is a Buy with a $24.50 price target. To see the full list of analyst forecasts on Capital Southwest stock, see the CSWC Stock Forecast page.

Spark’s Take on CSWC Stock

According to Spark, TipRanks’ AI Analyst, CSWC is a Neutral.

Capital Southwest’s overall stock score is driven by strong profitability and attractive valuation, despite technical indicators suggesting potential price pullback. The earnings call provided positive insights into strategic initiatives, although challenges like negative cash flows and spread compression remain.

To see Spark’s full report on CSWC stock, click here.

More about Capital Southwest

Capital Southwest Corporation is a Dallas, Texas-based, internally managed business development company with approximately $1.9 billion in investments at fair value as of September 30, 2025. The firm focuses on providing flexible middle market lending solutions, supporting the acquisition and growth of middle market businesses with $5 million to $50 million investments across the capital structure, including first lien, second lien and non-control equity co-investments, leveraging its permanent capital base to back portfolio companies over the long term.

Average Trading Volume: 607,133

Technical Sentiment Signal: Buy

Current Market Cap: $1.34B

Find detailed analytics on CSWC stock on TipRanks’ Stock Analysis page.

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