Main Street Capital Corporation (NYSE:MAIN) Increases Dividend to $0.27 Per Share

Key Points

• Main Street Capital raised its monthly dividend to $0.265 per share, a 1.9% increase from $0.26, with shareholders of record on Aug. 7 and a payment date of Aug. 14, implying a roughly 5.5% yield.
• Dividend coverage is adequate but not wide: the company has a current payout ratio of 82.1%, and analysts forecast $3.96 EPS next year (an expected payout ratio of about 78.8%), so coverage should hold unless earnings decline materially.
• Shares and fundamentals are supportive: MAIN rose about 2.8% to $57.34 after the announcement, recently beat quarter EPS estimates ($1.09 vs. $1.06) with $156.2M revenue, and trades at roughly a 10.4 P/E with a $5.17 billion market cap.

Main Street Capital Corporation (NYSE:MAIN - Get Free Report) declared a monthly dividend on Monday, May 4th. Stockholders of record on Friday, August 7th will be paid a dividend of 0.265 per share by the financial services provider on Friday, August 14th. This represents a c) annualized dividend and a dividend yield of 5.5%. The ex-dividend date is Friday, August 7th. This is a 1.9% increase from Main Street Capital's previous monthly dividend of $0.26.

Main Street Capital has raised its dividend payment 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 82.1% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Research analysts expect Main Street Capital to earn $3.96 per share next year, which means the company should continue to be able to cover its $3.12 annual dividend with an expected future payout ratio of 78.8%.

Main Street Capital Stock Up 2.8%

Shares of NYSE MAIN traded up $1.58 during midday trading on Tuesday, hitting $57.34. The stock had a trading volume of 470,289 shares, compared to its average volume of 704,491. The business's 50 day moving average is $55.17 and its 200-day moving average is $58.32. The company has a market cap of $5.17 billion, a P/E ratio of 10.39 and a beta of 0.76. Main Street Capital has a 52 week low of $50.77 and a 52 week 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 0.12.

Main Street Capital (NYSE:MAIN - Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The financial services provider reported $1.09 earnings per share for the quarter, beating the consensus estimate of $1.06 by $0.03. Main Street Capital had a net margin of 87.11% and a return on equity of 12.44%. The firm had revenue of $156.17 million during the quarter, compared to analysts' expectations of $141.50 million. As a group, analysts predict that Main Street Capital will post 4.02 EPS for the current year.

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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