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MAIN
In this article, we dive into the dividend history of MAIN over the last five years as well as its overall yield and payout dates.
Finding the right dividend stocks, such as MAIN, can help investors generate income, reduce overall portfolio risk, make use of tax advantages and expand purchasing power through dividend reinvestment programs.
Read on to learn about Main Street Capital Corp’s dividends as well as how it grades based on key metrics concerning dividend valuation, growth and strength to see whether this stock meets your investment needs.
Main Street Capital Corp’s Dividend Yield
Main Street Capital Corp has been paying out quarterly dividends to its shareholders since November 30, 2007.
As of August 26, 2023, Main Street Capital Corp had a relative dividend yield of 6.9% compared to the Corporate Financial Services industry median of 0.9%. Main Street Capital Corp’s dividend yield was 5.1% last year.
Since November 30, 2007, Main Street Capital Corp has paid out quarterly dividends ranging from $0.34 to $0.35 per share. Over the past five years, Main Street Capital Corp’s dividend yield has averaged 6.3% per year.
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Main Street Capital Corp’s Dividend History
Evaluating the dividend history of Main Street Capital Corp MAIN can help investors understand how often the company pays dividends, the reliability of the payout and long-term dividend growth trends.
AAII typically presents the last five years of data. Investors can review Main Street Capital Corp’s dividend history through its dividend yield and the growth rate of its dividend. Its average dividend yield over the past five years is 6.3%, and its compound annual dividend per share growth rate over the last five years is -2.9%. You can compare these percentages to current figures and against sector and industry peers.
Analyzing Main Street Capital Corp’s dividend history is a good first step for assessing payment sustainability. However, researching dividends requires more than simply looking at the company’s dividend yield and growth. Other financial metrics play an important role for investment decisions, too.
About Main Street Capital Corp’s (MAIN) Dividend Grades
AAII created the Dividend Investing Grader, a screening and strategy tool that condenses data in an actionable and customizable way suitable for investors of all knowledge levels, to help subscribers consolidate and understand large amounts of inaccessible data.
Our proprietary Dividend Grader assigns stocks an intuitive A–F grade for three “pillars”: dividend valuation, dividend growth and dividend strength. The DI Grader ranks dividend-paying stocks such as Main Street Capital Corp based on the three pillars, providing investors with useful metrics for judging the attractiveness of a stock based on its dividend. Continue reading for a closer look at Main Street Capital Corp’s dividend valuation, growth and strength grades.
Learn more about AAII’s Dividend Investing Strategy and Model Portfolio.
Main Street Capital Corp’s Dividend Valuation
Dividend Valuation Grade → F (Score: 90, Ultra Expensive)
Dividend valuation is a key component in seeking attractive dividend-paying stocks. Stock prices tend to fluctuate between high and low valuation levels, and these relationships can be used to determine a stock’s value range.
An important valuation metric used in the Dividend Grader is the relative dividend yield. Main Street Capital Corp’s dividend yield can be used to calculate a valuation estimate, indicating if this stock is expensive relative to its historical norm.
The Main Street Capital Corp’s Dividend Valuation Score is 90, which translates into a Dividend Valuation Grade of F and is considered Ultra Expensive.
The Dividend Valuation Score is the percentile rank of the average of the percentile ranks of the relative dividend yield and shareholder yield (buyback yield plus dividend yield). The score is not variable, meaning it must consider both relative dividend yield and shareholder yield to be valid. To be assigned a Dividend Valuation Score, stocks must have a valid (non-null) and corresponding ranking for both of the variables.
Stocks with a value score from 0 to 20 are considered deep value, those with a score between 21 and 40 are considered value and so on.
Main Street Capital Corp’s Dividend Growth
Dividend Growth Grade → C (Score: 49, Average)
Dividend growth is another key factor for the attractiveness of a dividend-paying stock. AAII looks at overall dividend growth for the most recent 12-month period as well as the five-year average annualized dividend growth rate. The Dividend Growth Grade also takes into account cash flow from operations and return on assets.
Main Street Capital Corp’s Dividend Growth Score is 49, which translates into a Dividend Growth Grade of C and is considered Average.
AAII assigns Main Street Capital Corp MAIN stock a Dividend Growth Score by adhering to a rule that states it must have a valid (non-null) percentage and corresponding ranking for at least three of the four growth components, including growth in cash flow from operations over the most recent 12-month period, return on assets (ROA) relative to the sector median, dividend growth over the most recent 12-month period as well as five-year average annualized dividend growth rate.
Main Street Capital Corp’s Dividend Strength
Dividend Strength Grade → F (Score: 20, Very Weak)
Underlying metrics, such as a company’s ability to generate cash flow, pay obligations and return capital to shareholders, play a key role in the overall financial strength of a company. A company’s leverage ratios, cash flows and payout ratios (earnings and cash flow) can also provide useful insights.
Two important metrics that determine Main Street Capital Corp stock’s Dividend Strength Score and Grade are based on are:
- Earnings payout ratio relative to its sector median
- Dividend sustainability score
Investors should look at these metrics to understand if a company is generating enough cash to cover its dividends year to year. If it is not, the dividend payment may not be sustainable.
Main Street Capital Corp’s Dividend Strength Score is 20, which translates into a Dividend Strength Grade of F and is considered Very Weak.
It’s important to understand what goes into calculating the Main Street Capital Corp MAIN dividend strength score and grade. There is little point in seeking out dividend-paying stocks like Main Street Capital Corp unless the dividend is secure and expected to grow. Many companies pay dividends, but those that can sustain their dividend payments are more desirable to income investors.
Main Street Capital Corp’s (MAIN) Dividends: Bottom Line
Overall, the Main Street Capital Corp’s current dividend yield is 6.9%, which ranks in the 55th percentile among all U.S.-listed dividend-paying stocks. Its compound average dividend growth rate is -2.9% over the last five years. Main Street Capital Corp has a Dividend Valuation Grade of F, a Dividend Growth Grade of C and a Dividend Strength Grade of F.
If you’re considering adding Main Street Capital Corp to your portfolio, make sure to do your own research and due diligence.
AAII’s Dividend Investing strategy and portfolio identify the best dividend investment opportunities by focusing on a select universe of well-financed companies that have the following characteristics:
- A long history of earnings and dividend growth
- Positive free cash flow
- Low to reasonable valuations
- A solid outlook for both price appreciation and higher dividends in the future
At AAII, we are intent on providing individual investors with the information, resources and tools they need to be confident in their financial decisions. So, before you invest in Main Street Capital Corp, ensure you have the right resources to conduct your analysis.
Our Dividend Investing subscription gives subscribers key screens and strategies to learn how to find stocks that fit your portfolio. Dividend Investing also gives members a real-world model portfolio with in-depth, time-tested rules that can help you outperform the market and receive quarterly dividends. Learn more and subscribe to AAII’s Dividend Investing today.
