Main Street Capital: High Yield, High Growth

Historically low interest rates have caused investors to seek higher yielding opportunities. Stocks with high yields provide current income and a cushion against capital depreciation. Dividend stocks tend to have strong financial positions to finance the period payments. I have been utilizing a dividend capturing technique for the past few years in an attempt to generate income as well as identify undervalued dividend stocks.

Main Street Capital is a business development company ("BDC") that specializes in equity, equity related, and debt investments in companies with revenue between $10M and $100M. Unlike some private equity firms, Main Street avoids start-up companies or those with "speculative business plans", instead preferring to "invest in traditional or basic businesses." Main Street has been steadily appreciating since June and the stock has climbed 60% in the past year due to the significant growth described above.

Source: Seeking Alpha

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