Dividends4Life: Main Street Capital: 6% Yield, Steady Monthly Dividends

We've covered several BDCs in our recent articles - this is one of the pockets of the market which was beaten down for a good part of 2020, due to investors becoming very wary about how well BDC's portfolio companies would fare in the pandemic lockdown economy. However, as you'll see in this article, they've bounced back from the March 2020 COVID Crash. This stock yields 6.44%. Management maintained the $0.205 dividend for March, April, and May. We compare valuations, leverage, profitability, and performance vs. the BDC industry. There's also a high yield option trade at the end of this article, with a breakeven below analysts' lowest price target for the company.

Main Street Capital Corporation (MAIN) is a private equity firm which specializes in equity capital to lower middle market - LMM companies. The firm also provides debt capital to middle market companies for acquisitions, management buyouts, growth financings, recapitalizations and refinancing. The firm seeks to partner with entrepreneurs, business owners and management teams and generally provides "one stop" financing alternatives within its lower middle market portfolio. It was founded in 2007 and is based in Houston, Texas.

Source: Seeking Alpha

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