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

Key Points

• $0.265 monthly dividend announced, payable on September 15 to shareholders of record September 8, representing an annualized yield of about 5.5%.
• The dividend is currently covered but relatively high: Main Street's payout ratio is 82.1%, and analysts project $3.96 EPS next year (implying an expected payout ratio near 78.8%); dividend growth has been minimal (average ~0.1% annually over the last three years) though increased for four consecutive years.
• Shares recently traded at $57.34 with a market cap of $5.17 billion and a P/E of 10.39, and the 12‑month range is $50.77–$67.77.

Main Street Capital Corporation (NYSE:MAIN - Get Free Report) announced a monthly dividend on Monday, May 4th. Stockholders of record on Tuesday, September 8th will be given a dividend of 0.265 per share by the financial services provider on Tuesday, September 15th. This represents a c) dividend on an annualized basis and a dividend yield of 5.5%. The ex-dividend date of this dividend is Tuesday, September 8th.

Main Street Capital has increased its dividend payment by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 4 consecutive years. Main Street Capital has a payout ratio of 82.1% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Equities 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 Performance

Shares of MAIN traded up $1.58 on Tuesday, reaching $57.34. 470,289 shares of the stock traded hands, compared to its average volume of 704,491. The firm has a market cap of $5.17 billion, a price-to-earnings ratio of 10.39 and a beta of 0.76. The company has a debt-to-equity ratio of 0.12, a current ratio of 0.06 and a quick ratio of 0.06. Main Street Capital has a 12 month low of $50.77 and a 12 month high of $67.77. The stock's 50-day moving average price is $55.17 and its 200-day moving average price is $58.32.

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 (EPS) for the quarter, beating analysts' consensus estimates of $1.06 by $0.03. Main Street Capital had a return on equity of 12.44% and a net margin of 87.11%.The business had revenue of $156.17 million for the quarter, compared to analysts' expectations of $141.50 million. Equities analysts forecast that Main Street Capital will post 4.02 EPS for the current fiscal 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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