Main Street Capital Corporation (NYSE:MAIN) Shares Set to Pay Monthly Dividend of $0.27

Key Points

• Main Street Capital declared a monthly dividend of $0.27 per share, equivalent to $3.24 annualized and a 5.7% yield. The dividend is payable February 12 to shareholders of record February 5.
• The dividend payout ratio is 83.7%; analysts expect earnings to cover the dividend next year, with a projected payout ratio of 83.5%. The company has raised its dividend for four consecutive years.
• Analysts’ consensus rating is Hold, with an average price target of $61. Main Street Capital’s latest quarterly EPS of $0.97 narrowly beat the $0.96 consensus estimate.

Main Street Capital Corporation (NYSE:MAIN - Get Free Report) announced a monthly dividend on Tuesday, November 3rd. Investors of record on Friday, February 5th will be given a dividend of $0.27 per share by the financial services provider on Friday, February 12th. This represents a $3.24 annualized dividend and a yield of 5.7%. The ex-dividend date is Friday, February 5th.

Main Street Capital has increased its dividend by an average of 0.1% annually over the last three years and has raised its dividend annually for the last 4 consecutive years. Main Street Capital has a payout ratio of 83.7% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings decline. Equities research analysts expect Main Street Capital to earn $3.81 per share next year, which means the company should continue to be able to cover its $3.18 annual dividend with an expected future payout ratio of 83.5%.

Main Street Capital Trading Up 0.2%

NYSE MAIN traded up $0.09 on Tuesday, reaching $56.39. The stock had a trading volume of 590,232 shares, compared to its average volume of 641,325. The firm has a market capitalization of $5.27 billion, a price-to-earnings ratio of 11.37 and a beta of 0.73. The company has a quick ratio of 0.05, a current ratio of 0.05 and a debt-to-equity ratio of 0.11. Main Street Capital has a 12-month low of $48.95 and a 12-month high of $65.23. The stock has a fifty day moving average price of $55.67 and a two-hundred day moving average price of $55.54.

Main Street Capital (NYSE:MAIN - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The financial services provider reported $0.97 EPS for the quarter, topping analysts' consensus estimates of $0.96 by $0.01. Main Street Capital had a return on equity of 11.80% and a net margin of 78.49%. The company had revenue of $327.56 million for the quarter, compared to analysts' expectations of $144.59 million. As a group, sell-side analysts forecast that Main Street Capital will post 3.75 EPS for the current fiscal year.

Analysts Set New Price Targets

MAIN has been the topic of several research analyst reports. Weiss Ratings upgraded Main Street Capital from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, September 3rd. Wells Fargo & Company upgraded Main Street Capital from an "equal weight" rating to an "overweight" rating and raised their target price for the company from $55.00 to $60.00 in a report on Tuesday, September 29th. UBS Group dropped their target price on Main Street Capital from $62.00 to $57.00 and set a "neutral" rating for the company in a research report on Friday, October 9th. Zacks Research upgraded shares of Main Street Capital from a "strong sell" rating to a "hold" rating in a research note on Monday, July 20th. Finally, Wall Street Zen lowered shares of Main Street Capital from a "hold" rating to a "sell" rating in a research note on Sunday, October 11th. Five investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, Main Street Capital presently has a consensus rating of "Hold" and an average target price of $61.00.

Main Street Capital Company Profile

Main Street Capital Corporation is a business development company that provides customized debt and equity financing to privately held businesses. The company primarily invests in lower middle-market companies and also makes private loan investments in larger middle-market businesses.

Its investment activities include first-lien, second-lien and subordinated debt, as well as equity investments and other securities. Main Street seeks to provide flexible, long-term capital to support acquisitions, recapitalizations, growth initiatives and other corporate financing needs.

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