No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Tuesday, October 28, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Investing

Monthly Dividend Stock In Focus: Main Street Capital

by TheAdviserMagazine
7 months ago
in Investing
Reading Time: 5 mins read
A A
Monthly Dividend Stock In Focus: Main Street Capital
Share on FacebookShare on TwitterShare on LInkedIn


Updated on April 1st, 2025 by Nathan Parsh

Business Development Companies – or BDCs, for short – can be a great source of current yield for income investors.

Main Street Capital Corporation (MAIN) is a great example of this. MAIN stock has a current dividend yield of 5.2%, but the yield grows to 7.3% when factoring in the company’s special dividends.

Better yet, Main Street Capital stock pays monthly dividends.

You can download our full Excel spreadsheet of all 76 monthly dividend stocks (along with metrics that matter, like dividend yield and payout ratio) by clicking on the link below:

 

Monthly Dividend Stock In Focus: Main Street Capital

The stock’s high dividend yield and monthly payments make it a solid choice for income investors.

Main Street Capital’s business appears to be on solid footing. This article will discuss the investment prospects of Main Street Capital Corporation in detail.

Business Overview

Main Street Capital Corporation is a Business Development Company (BDC). Our full list is here.

The company operates as a debt and equity investor for lower middle market companies (those with $10-$150 million of annual revenues) seeking to transform their capital structures.

BDCs can invest in both debt and equity, which gives them an advantage over companies that invest in private debt or private equity alone.

Main Street Capital Corporation also invests in the private debt of middle-market companies (not lower middle-market companies) and has a budding asset management advisory business.

Source: Investor Presentation

Both transaction type and geography highly diversify holdings. By transaction type, the BDC acquires most of its deals via recapitalization and leveraged buyouts.

Main Street Capital Corporation also has a very high degree of industry diversification.

At the end of Q4 2024, Main Street had interests in 84 lower-middle-market companies (valued at $2.5 billion), 15 middle-market companies ($155 million), and 91 private loan investments ($1.9 billion).

Growth Prospects

Main Street Capital Corporation’s growth prospects come from its unique strategy of driving investment returns. In turn, the BDC sustains its high monthly dividend payout, and grows it over time.

On November 4th, 2024, Main Street Capital announced a 2.0% dividend increase to $0.25 per share paid monthly. The current annualized dividend payout is $3.00 per share.

On February 27th, 2025, Main Street Capital reported fourth-quarter and full-year results. The quarter’s net investment income increased to 0.2% to $90.4 million, compared to $90.1 million in Q4 2023. Net investment income per share of $1.02 declined 5% year-over-year.

Distributable net investment income per share totaled $1.08, which was down 4% from $1.12 in Q4 2023. Main Street’s net asset value ended the quarter at $29.20, an 8.4% increase from the end of the previous year.

Main Street has established a solid record in the past decade, with a nine-year and five-year net investment income per share CAGR of 7.2% and 10.3%, respectively.

We expect MAIN to grow its net investment income per share by 1% per year over the next five years.

Dividend Analysis

MAIN pays a monthly dividend. The company has also paid substantial supplemental dividends on various occasions. The most recent example was a supplemental payout of $0.30 per share that was declared on February 25th, 2025.

These are one-time special dividends, but we expect the company to continue this tradition of special dividends when distributable NII per share significantly exceeds its monthly dividend payouts.

The supplemental dividends have been a result of generating realized gains from Main Street’s equity investments.

Source: Investor Presentation

The dividend appears secure. For example, based on NII-per-share the company easily covered its dividend every year since 2021.

We expect MAIN to generate NII per share of $4.00 in 2025. With a forward annualized dividend payout of $3.00 per share, MAIN has an expected dividend payout ratio of approximately 75% for this year.

Its regular dividend growth and occasional special dividends imply that its dividend is in good shape.

To avoid corporate income tax as a BDC, Main Street must distribute at least 90% of its taxable income, leaving little wiggle room to fund growth.

While this strategy has worked extremely well since the last recession, we do caution that this method of funding becomes substantially less attractive (and more expensive) in weaker economic periods.

The main threat to the dividend is a recession, which would force many borrowers to default and cause interest rates on floating-rate loans to plummet.

As a result, earnings per share would likely decline rapidly, forcing the company to right-size its dividend. For now, however, the dividend appears to be safe.

Final Thoughts

Although Main Street Capital Corporation is off the radar for most dividend growth investors, this BDC has a strong history of delivering substantial shareholder returns.

The firm’s strong track record of superior investment management and expertise in the lower middle market segment gives it a strong competitive advantage in the private equity and debt industry.

Further, Main Street Capital Corporation is a shareholder-friendly BDC with a high yield and monthly payouts.

Further Reading: 20 Highest-Yielding BDCs

Don’t miss the resources below for more monthly dividend stock investing research.

And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.

Thanks for reading this article. Please send any feedback, corrections, or questions to [email protected].



Source link

Tags: CapitaldividendFocusMainMonthlystockStreet
ShareTweetShare
Previous Post

Denied SSDI Benefits Due to Ability to Perform Past Work

Next Post

Can Beyond Meat (BYND) overcome its persistent challenges?

Related Posts

edit post
The NBA Season is Back—These 8 Markets Are Cash Cows For Airbnbs

The NBA Season is Back—These 8 Markets Are Cash Cows For Airbnbs

by TheAdviserMagazine
October 27, 2025
0

In This Article I grew up with a basketball in one hand and a box score in the other. My...

edit post
10 Of The Right Retirement Stocks For Income Investors

10 Of The Right Retirement Stocks For Income Investors

by TheAdviserMagazine
October 27, 2025
0

Published on October 27th, 2025 by Bob Ciura There are a nearly unlimited number of investable securities available on the...

edit post
Why Financial Advisors Struggle to Embrace Bitcoin’s Rise

Why Financial Advisors Struggle to Embrace Bitcoin’s Rise

by TheAdviserMagazine
October 27, 2025
0

Introduction Bitcoin is one of the most powerful technologies of our time and has delivered financial freedom to millions and...

edit post
The 10 Best Small-Cap Dividend Stocks You’ve Never Heard Of

The 10 Best Small-Cap Dividend Stocks You’ve Never Heard Of

by TheAdviserMagazine
October 27, 2025
0

Updated on October 27th, 2025 by Bob CiuraSpreadsheet data updated daily Income investors looking for quality dividend stocks typically buy...

edit post
How I Bought My First Rental Property

How I Bought My First Rental Property

by TheAdviserMagazine
October 27, 2025
0

You’ve got little savings but want to buy a rental property. You see so many “no money down” investing strategies,...

edit post
Prospect Capital (PSEC) | Monthly Dividend Safety Analysis

Prospect Capital (PSEC) | Monthly Dividend Safety Analysis

by TheAdviserMagazine
October 24, 2025
0

Updated on October 24th, 2025 by Bob Ciura Business Development Companies — or BDCs, for short — allow investors to...

Next Post
edit post
Can Beyond Meat (BYND) overcome its persistent challenges?

Can Beyond Meat (BYND) overcome its persistent challenges?

edit post
5 Ways Weaker IRS Enforcement Could Hurt Rule-Following Taxpayers

5 Ways Weaker IRS Enforcement Could Hurt Rule-Following Taxpayers

  • Trending
  • Comments
  • Latest
edit post
77-year-old popular furniture retailer closes store locations

77-year-old popular furniture retailer closes store locations

October 18, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
What to Do When a Loved One Dies in North Carolina

What to Do When a Loved One Dies in North Carolina

October 8, 2025
edit post
Another Violent Outburst – Democrats Inciting Civil Unrest

Another Violent Outburst – Democrats Inciting Civil Unrest

October 24, 2025
edit post
Probate vs. Non-Probate Assets: What’s the Difference?

Probate vs. Non-Probate Assets: What’s the Difference?

October 17, 2025
edit post
California Attorney Pleads Guilty For Role In 2M Ponzi Scheme

California Attorney Pleads Guilty For Role In $912M Ponzi Scheme

October 15, 2025
edit post
October 7 – October 23, 2025

October 7 – October 23, 2025

0
edit post
New father, overwhelmed by K in student loan, car debt, fears bankruptcy — how Dave Ramsey says he can avoid it

New father, overwhelmed by $53K in student loan, car debt, fears bankruptcy — how Dave Ramsey says he can avoid it

0
edit post
Community Colleges Must Foster ‘Culture of Caring’ to Boost Student Success, Major Report Finds

Community Colleges Must Foster ‘Culture of Caring’ to Boost Student Success, Major Report Finds

0
edit post
How Walter White Could Have Used SSDI to Avoid a Life of Crime

How Walter White Could Have Used SSDI to Avoid a Life of Crime

0
edit post
Earnings Summary: Keurig Dr Pepper Q3 FY25 earnings grow on higher revenues

Earnings Summary: Keurig Dr Pepper Q3 FY25 earnings grow on higher revenues

0
edit post
Judge extends order barring Trump administration from firing federal workers during shutdown

Judge extends order barring Trump administration from firing federal workers during shutdown

0
edit post
October 7 – October 23, 2025

October 7 – October 23, 2025

October 28, 2025
edit post
Saudi power chair: Tariffs weaken the global energy transition and hurt humanity

Saudi power chair: Tariffs weaken the global energy transition and hurt humanity

October 28, 2025
edit post
Judge extends order barring Trump administration from firing federal workers during shutdown

Judge extends order barring Trump administration from firing federal workers during shutdown

October 28, 2025
edit post
Virginia Court Reverses M Libel Judgment for School Board Chair Called “Sexual Predator/Harasser” by Activist

Virginia Court Reverses $1M Libel Judgment for School Board Chair Called “Sexual Predator/Harasser” by Activist

October 28, 2025
edit post
‘The Stuff of Nightmares’: Hurricane Melissa Makes Catastrophic Landfall in Jamaica

‘The Stuff of Nightmares’: Hurricane Melissa Makes Catastrophic Landfall in Jamaica

October 28, 2025
edit post
Ray Dalio says a risky AI market bubble is forming, but may not pop until the Fed tightens

Ray Dalio says a risky AI market bubble is forming, but may not pop until the Fed tightens

October 28, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • October 7 – October 23, 2025
  • Saudi power chair: Tariffs weaken the global energy transition and hurt humanity
  • Judge extends order barring Trump administration from firing federal workers during shutdown
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.