Main Street Capital Corporation Declares Monthly Dividend of $0.27 (NYSE:MAIN)

Key Points

• Main Street Capital declared a monthly dividend of $0.265 per share, payable December 15 to shareholders of record December 8. The dividend implies a 5.6% annualized yield, with the same date listed as the ex-dividend date.
• The dividend has been raised annually for four years, but its current 83.7% payout ratio leaves limited room if earnings weaken. Analysts expect next year’s earnings to cover the $3.18 annualized dividend at an estimated 82.2% payout ratio.
• Analyst sentiment remains mixed: four analysts rate the stock a Buy and six a Hold, producing a consensus “Hold” rating and a $59.33 target price. Shares recently traded at $57.14 after the company missed quarterly earnings and revenue estimates.

Main Street Capital Corporation (NYSE:MAIN - Get Free Report) announced a monthly dividend on Monday, August 3rd. Investors of record on Tuesday, December 8th will be paid a dividend of 0.265 per share by the financial services provider on Tuesday, December 15th. This represents a c) annualized dividend and a dividend yield of 5.6%. The ex-dividend date of this dividend is Tuesday, December 8th.

Main Street Capital has raised its dividend by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 4 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 $3.87 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 82.2%.

Main Street Capital Stock Performance

NYSE:MAIN traded up $1.39 during midday trading on Tuesday, reaching $57.14. The stock had a trading volume of 654,197 shares, compared to its average volume of 703,839. The firm has a fifty day simple moving average of $52.29 and a two-hundred day simple moving average of $55.20. Main Street Capital has a 12-month low of $48.95 and a 12-month high of $67.77. The company has a quick ratio of 0.06, a current ratio of 0.06 and a debt-to-equity ratio of 0.11. The stock has a market cap of $5.31 billion, a P/E ratio of 12.03 and a beta of 0.72.

Main Street Capital (NYSE:MAIN - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The financial services provider reported $0.93 EPS for the quarter, missing analysts' consensus estimates of $1.04 by ($0.11). The firm had revenue of $73.44 million for the quarter, compared to analysts' expectations of $145.23 million. Main Street Capital had a return on equity of 12.01% and a net margin of 74.86%. On average, equities analysts expect that Main Street Capital will post 3.79 EPS for the current year.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on MAIN. 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. Citizens Jmp reduced their price objective on shares of Main Street Capital from $74.00 to $70.00 and set a "market outperform" rating for the company in a research report on Wednesday, April 22nd. Wall Street Zen lowered Main Street Capital from a "hold" rating to a "sell" rating in a report on Saturday, May 16th. Royal Bank Of Canada cut their target price on Main Street Capital from $66.00 to $58.00 and set an "outperform" rating for the company in a research note on Thursday, May 14th. Finally, Weiss Ratings raised Main Street Capital from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, July 28th. Four equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat, Main Street Capital has an average rating of "Hold" and a consensus target price of $59.33.

About Main Street Capital

Main Street Capital Corporation NYSE: MAIN is a publicly traded business development company that provides flexible debt and equity capital to lower middle market companies in the United States. Headquartered in Houston, Texas, Main Street Capital was formed in 2007 and operates under the Investment Company Act of 1940. The firm's management services are provided by Main Street Capital Management, L.P., which focuses on identifying growing private companies with enterprise values typically between $10 million and $150 million.

Main Street Capital's primary offerings include first-lien senior secured loans, second-lien loans, subordinated debt, and equity co-investments or minority equity positions.

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