Main Street Capital Corporation (NYSE:MAIN) Plans $0.30 Quarterly Dividend

Key Points

• Main Street Capital Corporation announced a quarterly dividend of $0.30 per share, with an impressive dividend yield of 6.35%, set to be paid on September 26th.
• The company has a current payout ratio of 78.9%, indicating that while the dividend is currently covered by earnings, future declines in earnings could jeopardize this coverage.
• Shares of Main Street Capital recently opened at $66.12, with the stock showing a wide trading range over the past year, hitting a low of $47.00 and a high of $67.77.

Main Street Capital Corporation (NYSE:MAIN - Get Free Report) declared a quarterly dividend on Monday, August 4th, investing.com reports. Stockholders of record on Wednesday, October 8th will be paid a dividend of 0.30 per share by the financial services provider on Wednesday, October 15th. This represents a c) dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend is Wednesday, October 8th.

Main Street Capital has a payout ratio of 78.9% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Equities research analysts expect Main Street Capital to earn $4.06 per share next year, which means the company should continue to be able to cover its $3.00 annual dividend with an expected future payout ratio of 73.9%.

Main Street Capital Trading Down 0.4%

Shares of MAIN traded down $0.29 during mid-day trading on Friday, reaching $65.85. 1,944,787 shares of the company were exchanged, compared to its average volume of 495,497. Main Street Capital has a 52 week low of $47.00 and a 52 week high of $67.77. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.09 and a current ratio of 0.09. The stock has a market capitalization of $5.89 billion, a PE ratio of 10.85 and a beta of 0.88. The business has a 50 day simple moving average of $65.35 and a two-hundred day simple moving average of $59.33.

Main Street Capital (NYSE:MAIN - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The financial services provider reported $0.99 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.99. Main Street Capital had a return on equity of 12.70% and a net margin of 96.16%.The company had revenue of $143.97 million during the quarter, compared to the consensus estimate of $137.23 million. On average, analysts predict that Main Street Capital will post 4.11 earnings per share for the current fiscal year.

Insider Activity at Main Street Capital

In related news, Director Nicholas Meserve sold 14,000 shares of Main Street Capital stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $67.15, for a total transaction of $940,100.00. Following the transaction, the director owned 82,383 shares of the company's stock, valued at $5,532,018.45. The trade was a 14.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Jason B. Beauvais sold 13,664 shares of Main Street Capital stock in a transaction that occurred on Friday, June 27th. The shares were sold at an average price of $59.37, for a total value of $811,231.68. Following the transaction, the executive vice president directly owned 181,526 shares in the company, valued at approximately $10,777,198.62. The trade was a 7.00% decrease in their position. The disclosure for this sale can be found here. 4.00% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of MAIN. Bay Colony Advisory Group Inc d b a Bay Colony Advisors raised its stake in shares of Main Street Capital by 1.2% during the 2nd quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors now owns 15,889 shares of the financial services provider's stock valued at $939,000 after purchasing an additional 193 shares during the period. Freedom Financial Partners LLC increased its stake in Main Street Capital by 4.5% in the 2nd quarter. Freedom Financial Partners LLC now owns 5,100 shares of the financial services provider's stock worth $301,000 after acquiring an additional 218 shares during the last quarter. Nations Financial Group Inc. IA ADV increased its stake in Main Street Capital by 2.4% in the 1st quarter. Nations Financial Group Inc. IA ADV now owns 9,520 shares of the financial services provider's stock worth $538,000 after acquiring an additional 221 shares during the last quarter. Wealth Enhancement Advisory Services LLC increased its stake in Main Street Capital by 0.4% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 58,955 shares of the financial services provider's stock worth $3,454,000 after acquiring an additional 229 shares during the last quarter. Finally, Uncommon Cents Investing LLC increased its stake in Main Street Capital by 1.4% in the 1st quarter. Uncommon Cents Investing LLC now owns 16,206 shares of the financial services provider's stock worth $917,000 after acquiring an additional 231 shares during the last quarter. Hedge funds and other institutional investors own 20.31% of the company's stock.

Main Street Capital Company Profile

Main Street Capital Corporation is a business development company specializes in equity capital to lower middle market companies. The firm specializing in recapitalizations, management buyouts, refinancing, family estate planning, management buyouts, refinancing, industry consolidation, mature, later stage emerging growth.