7 Dividend Stocks with 10%+ Yield

5. Capital Southwest Corporation (NASDAQ:CSWC)

Dividend Yield as of July 16: 11.45%

Capital Southwest Corporation (NASDAQ:CSWC) is a Texas-based capital market company that provides capital to lower middle market companies across the capital structure. The company may not be widely recognized in the investment arena but it has exhibited significant financial growth, with its trailing twelve-month revenue reaching $178.14 million. In fiscal Q4 2024, the company reported a total investment income of $46.4 million, up significantly by 25% from the same period last year. Its total investment portfolio also grew by $270.2 million during FY24 to $1.5 billion, up from $1.2 billion in the prior-year period.

Capital Southwest Corporation (NASDAQ:CSWC)’s growing popularity among investors is evident from recent insider purchases, highlighting confidence in its trajectory and stability. Despite relying on higher-risk external borrowing, the firm’s strong internal expectations and strategic foresight, as demonstrated in investor conferences and consistent dividend affirmations, reinforce this confidence.

Dividends are important for business development companies because they typically constitute the primary source of long-term total return for investors. Capital Southwest Corporation (NASDAQ:CSWC) is particularly notable in this regard as the company, along with its regular dividends, also holds a history of paying supplemental dividends to shareholders. It has paid special dividends to shareholders in every quarter since 2022, which makes CSWC one of the best dividend stocks with over 10% yield. Currently, it offers a quarterly dividend of $0.57 per share with a dividend yield of 11.45%, as of July 16.

As of the close of Q1 2024, 6 hedge funds in Insider Monkey’s database held stakes in Capital Southwest Corporation (NASDAQ:CSWC), down from 12 in the previous quarter. These stakes have a collective value of more than $21 million. Ken Griffin’s Citadel Investment Group was one of the company’s leading stakeholders in Q1.