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

Main Street Capital Corporation (NYSE:MAIN) declared a monthly dividend on Tuesday, November 3rd. Stockholders of record on Friday, January 8th will be paid 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 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% per year over the last three years and has raised its dividend annually for the last 4 consecutive years. Main Street Capital has a payout ratio of 83.7% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings fall. Equities research 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 Price Performance

Shares of MAIN traded up $0.09 during mid-day trading on Tuesday, reaching $56.39. The company had a trading volume of 590,232 shares, compared to its average volume of 641,325. The company’s 50 day simple moving average is $55.67 and its 200 day simple moving average is $55.54. The company has a market capitalization of $5.27 billion, a price-to-earnings ratio of 11.37 and a beta of 0.73. Main Street Capital has a 1-year low of $48.95 and a 1-year high of $65.23. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.05 and a current ratio of 0.05.

Main Street Capital (NYSE:MAIN) last issued its quarterly earnings results on Thursday, August 6th. The financial services provider reported $0.97 EPS for the quarter, topping analysts’ consensus estimates of $0.96 by $0.01. Main Street Capital had a net margin of 78.49% and a return on equity of 11.80%. The company had revenue of $327.56 million for the quarter, compared to analyst estimates of $144.59 million. Analysts expect that Main Street Capital will post 3.75 EPS for the current year.

Insider Activity

In other Main Street Capital news, CAO Ryan Mchugh purchased 2,550 shares of the company’s stock in a transaction that occurred on Thursday, August 13th. The shares were bought at an average cost of $59.05 per share, for a total transaction of $150,577.50. Following the purchase, the chief accounting officer 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 purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 3.83% of the stock is currently owned by company insiders.

Institutional Trading of Main Street Capital

Hedge funds and other institutional investors have recently made changes to their positions in the stock. United Advisor Group LLC lifted its holdings in shares of Main Street Capital by 23.8% in the third quarter. United Advisor Group LLC now owns 5,202 shares of the financial services provider’s stock worth $286,000 after buying an additional 1,001 shares in the last quarter. Inscription Capital LLC grew its stake in Main Street Capital by 4.3% during the third quarter. Inscription Capital LLC now owns 12,346 shares of the financial services provider’s stock valued at $680,000 after acquiring an additional 504 shares in the last quarter. Commonwealth Equity Services LLC grew its stake in Main Street Capital by 0.8% during the third quarter. Commonwealth Equity Services LLC now owns 60,249 shares of the financial services provider’s stock valued at $3,317,000 after acquiring an additional 490 shares in the last quarter. Integrity Alliance LLC. grew its stake in Main Street Capital by 27.2% during the third quarter. Integrity Alliance LLC. now owns 7,906 shares of the financial services provider’s stock valued at $435,000 after acquiring an additional 1,691 shares in the last quarter. Finally, Signature Equity Partners LLC increased its holdings in Main Street Capital by 10.4% during the 3rd quarter. Signature Equity Partners LLC now owns 17,596 shares of the financial services provider’s stock worth $969,000 after acquiring an additional 1,651 shares during the period. 20.31% of the stock is currently owned by institutional investors.

About Main Street Capital

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.