Capital Southwest is not for every investor, but I like owning shares for the high dividend payout. There is only one ETF that I know has CSWC and even that ETF should be viewed as higher risk. The ETF for business development companies is BIZD, but I don’t recommend it. The expense ratio is just silly, so don’t buy BIZD.

CSWC is a business development company specializing in credit and private equity and venture capital investments in middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, recapitalizations and growth capital investments. It does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing.

The dividend payment pattern for CSWC is “irregular.”

CSWC is a very small financial company, so it is not heavily traded. Don’t buy this type of investment if you cannot handle wide swings in the stock price.

Note that Seeking Alpha does not show 2019 dividends in this image.

ETFs with CSWC – If you own ETF BIZD you own a VERY small slice of CSWC.

BIZD holds some great BDC’s, but don’t buy the ETF.