Main Street Capital Corporation (NYSE:MAIN) Plans Dividend Increase – $0.27 Per Share

Main Street Capital Corporation (NYSE:MAIN) announced a monthly dividend on Monday, November 2nd. Stockholders of record on Friday, January 8th will be given a dividend of $0.27 per share by the financial services provider on Friday, January 15th. This represents a $3.24 annualized dividend and a dividend yield of 5.7%. The ex-dividend date of this dividend is Friday, January 8th. This is a 1.9% increase from Main Street Capital’s previous monthly dividend of $0.2650.

Main Street Capital has raised its dividend payment by an average of 0.1% annually over the last three years and has raised its dividend annually for the last 4 consecutive years. Main Street Capital has a dividend payout ratio of 83.7% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Analysts expect Main Street Capital to earn $3.81 per share next year, which means the company should continue to be able to cover its $3.18 annual dividend with an expected future payout ratio of 83.5%.

Main Street Capital Stock Up 0.2%

Main Street Capital stock opened at $56.39 on Wednesday. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.05 and a quick ratio of 0.05. Main Street Capital has a 1-year low of $48.95 and a 1-year high of $65.23. The company has a market cap of $5.27 billion, a PE ratio of 14.22 and a beta of 0.73. The stock’s 50 day moving average price is $55.61 and its 200 day moving average price is $55.51.

Main Street Capital (NYSE:MAIN) last announced its quarterly earnings data on Thursday, August 6th. The financial services provider reported $0.97 earnings per share for the quarter, topping analysts’ consensus estimates of $0.96 by $0.01. The firm had revenue of $327.56 million for the quarter, compared to analyst estimates of $144.59 million. Main Street Capital had a return on equity of 11.80% and a net margin of 78.49%. On average, sell-side analysts predict that Main Street Capital will post 3.75 EPS for the current fiscal year.

Insider Buying and Selling at Main Street Capital

In other news, CAO Ryan Mchugh purchased 2,550 shares of the business’s stock in a transaction dated Thursday, August 13th. The stock was acquired at an average price of $59.05 per share, with a total value of $150,577.50. Following the purchase, the chief accounting officer directly owned 22,647 shares of the company’s stock, valued at $1,337,305.35. This represents a 12.69% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 3.83% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Main Street Capital

Large investors have recently added to or reduced their stakes in the business. MassMutual Private Wealth & Trust FSB purchased a new stake in shares of Main Street Capital in the second quarter valued at about $28,000. John Boyer Inc. purchased a new position in shares of Main Street Capital during the 3rd quarter worth approximately $28,000. Fifth Third Bancorp purchased a new position in shares of Main Street Capital during the 1st quarter worth approximately $57,000. Root Financial Partners LLC acquired a new position in shares of Main Street Capital during the 3rd quarter worth approximately $64,000. Finally, State of Wyoming acquired a new position in shares of Main Street Capital during the 1st quarter worth approximately $65,000. 20.31% of the stock is owned by institutional investors and hedge funds.

Main Street Capital Company Profile

Main Street Capital Corporation is a business development company that provides customized debt and equity financing to privately held businesses. The company primarily invests in lower middle-market companies and also makes private loan investments in larger middle-market businesses.

Its investment activities include first-lien, second-lien and subordinated debt, as well as equity investments and other securities. Main Street seeks to provide flexible, long-term capital to support acquisitions, recapitalizations, growth initiatives and other corporate financing needs.