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

Key Points

• Main Street Capital declared a monthly dividend of $0.265 per share, payable November 13 to shareholders of record on November 6. The dividend implies an annualized yield of approximately 5.6%.
• The dividend has been increased annually for four consecutive years, but its 83.7% payout ratio leaves less room for earnings declines; analysts expect an 82.2% payout ratio next year.
• Analysts maintain a mixed outlook, with the stock carrying an average “Hold” rating and a $59.33 price target. Main Street Capital recently missed quarterly earnings and revenue estimates.

Main Street Capital Corporation (NYSE:MAIN - Get Free Report) declared a monthly dividend on Monday, August 3rd. Shareholders of record on Friday, November 6th will be given a dividend of 0.265 per share by the financial services provider on Friday, November 13th. This represents a c) dividend on an annualized basis and a yield of 5.6%. The ex-dividend date of this dividend is Friday, November 6th.

Main Street Capital has raised its dividend by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 4 years. Main Street Capital has a dividend 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. 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 on Tuesday, hitting $57.14. The stock had a trading volume of 654,197 shares, compared to its average volume of 703,839. The stock has a market cap of $5.31 billion, a price-to-earnings ratio of 12.03 and a beta of 0.72. 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 business's 50-day simple moving average is $52.29 and its two-hundred day simple moving average is $55.20. Main Street Capital has a 52-week low of $48.95 and a 52-week high of $67.77.

Main Street Capital (NYSE:MAIN - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The financial services provider reported $0.93 EPS for the quarter, missing the consensus estimate of $1.04 by ($0.11). Main Street Capital had a net margin of 74.86% and a return on equity of 12.01%. The business had revenue of $73.44 million for the quarter, compared to analysts' expectations of $145.23 million. As a group, research analysts predict that Main Street Capital will post 3.79 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. Royal Bank Of Canada cut their target price on shares of Main Street Capital from $66.00 to $58.00 and set an "outperform" rating for the company in a research report on Thursday, May 14th. Wells Fargo & Company began coverage on shares of Main Street Capital in a research note on Friday, May 22nd. They set an "equal weight" rating and a $50.00 price target on the stock. Citizens Jmp cut 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 research note on Saturday, May 16th. Finally, Truist Financial lowered their target price on Main Street Capital from $60.00 to $53.00 and set a "hold" rating on the stock in a research report on Tuesday, May 19th. Four research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average 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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