Main Street Capital

Main Street Capital is a principal investment firm that provides long-term debt and equity capital to lower middle market companies. Main Street's investments are primarily made to support management buyouts, recapitalizations, growth financings and acquisitions of companies that operate in diverse industry sectors and generally have annual revenues ranging from $10 million to $100 million. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides ''one-stop'' financing alternatives to its portfolio companies.

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Earnings data Q4 2024

Main Street Capital achieves record-breaking performance and plans new fund launch

Main Street Capital delivered record-breaking performance in Q4 2022, with strong full-year results and a focus on shareholder returns through dividends. Despite challenges in the investment pipeline and potential credit quality issues, the company remains optimistic about generating new opportunities and maintaining a conservative approach to leverage. Main Street's emphasis on asset management and private loan strategies positions them well for future growth.

Main Street Capital achieves record Q1 results and plans dividend growth

Main Street Capital's Q1 performance reflects financial strength and growth potential, supported by a diversified portfolio and effective financing solutions. While facing challenges from economic uncertainties and rising expenses, the company is well-positioned to capitalize on opportunities for dividend growth, portfolio expansion, and team development.

Main Street Capital achieves record Q2 performance and eyes strategic growth

Main Street Capital delivered strong financial performance in Q2 2023, setting new records in key metrics and demonstrating growth across its investment strategies.
While facing challenges such as increased expenses and potential investment volatility, the company remains focused on shareholder value and strategic growth initiatives.
Opportunities lie in expanding the private loan fund, increasing the lower middle market portfolio share, and leveraging the strong performance of portfolio companies.
Overall, Main Street Capital's Q2 performance and strategic outlook position the company well for continued growth and value creation for shareholders.

Main Street Capital reports strong Q3 performance and growth opportunities

Main Street Capital delivered a strong Q3 performance with a focus on strategic investments and positive operating performance from portfolio companies.
Challenges included lower-than-expected investment activity and specific operating performance issues leading to increased nonaccruals.
Opportunities lie in continued acquisition growth strategies, adjusting marks post-transaction closes, and capitalizing on positive sentiment from portfolio companies.

Main Street Capital achieves record Q4 results and eyes growth

Main Street Capital delivered exceptional Q4 2023 results, marked by record achievements in various financial metrics and strong shareholder value enhancement.
The company's focus on maintaining financial stability, providing liquidity options, and optimizing investment strategies positions it well for growth and resilience.
While challenges like managing leverage and portfolio quality persist, Main Street's opportunities for growth through debt financing, acquisitions, and external manager contributions are promising.

Main Street Capital achieves record returns and plans dividend growth

Main Street Capital delivered strong financial performance in Q1 2024, driven by record returns on equity, NAV per share, and investment income, supported by diversified strategies and asset management.
While facing challenges such as yield compression and cautious market segments, the company remains focused on leveraging opportunities in private loans, deal activities, and fund expansions for sustainable growth.
Maintaining a conservative leverage profile and emphasizing the value of its asset management business, Main Street aims to navigate market dynamics and deliver consistent shareholder value.
With a record high net asset value per share and plans for dividend increases, Main Street Capital demonstrates financial strength, strategic resilience, and a commitment to shareholder returns.

Main Street Capital reports robust Q2 performance and strategic growth plans

Main Street Capital's Q2 2024 performance reflects strong financial metrics and strategic decisions to enhance shareholder value. While facing challenges in nonaccruals and fee adjustments, the company is well-positioned to leverage growth opportunities in its investment pipelines. Overall, Main Street's focus on portfolio expansion and prudent financial management bodes well for its future.

Main Street Capital reports strong Q3 performance and dividend growth

Main Street Capital delivered robust financial results in Q3 2024, showcasing strong performance across investments and asset management.
While facing challenges such as increased operating expenses and varying investment pipelines, the company remains well-positioned with a conservative leverage profile and liquidity.
Opportunities lie in recommending future dividends, anticipated strong performance in Q4, and capitalizing on investment opportunities in the lower middle market.

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Saratoga Investment

Sixth Street Specialty Lending

Major BDCs are soon about to report their Q3, 2024 earnings. The current sector-wide challenges do not send encouraging signals. The Management team of SAR, which is one the BDCs that report 10-Q early, has indicated that the headwinds indeed persist.

A Game Plan For BDC Investors Before The Earnings Season

Ares Capital

VanEck Vectors BDC Income ETF

Hercules Capital

Oaktree Specialty Lending

Solar Capital

Typically, stocks with at-risk dividends should be avoided. That said, there are exceptions to every rule. I share two high-yielding stocks that look like attractive buys to me even though their dividends could very possibly be cut in the near future.

Dividend Cut Alert For 2 Deeply Undervalued 11%+ Yields

HOUSTON , Oct. 10, 2024 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce the following recent activity in its private loan portfolio. During the third quarter of 2024, Main Street originated new or increased commitments in its private loan portfolio of $270.3 million and funded total investments across its private loan portfolio with a cost basis totaling $309.3 million.

Main Street Announces Third Quarter 2024 Private Loan Portfolio Activity

Agree Realty

Blackstone Secured Lending Fund

Enterprise Products Partners

Essential Properties Realty Trust Inc

It would be fair to assume that usually when it comes to retirement investing, attractive yield and defense are two aspects that dominate investment decisions. If these two aspects have to be in place, there are not that many businesses or securities where to invest. In the previous or Part 1 article, I highlighted BXSL and EPD as two suitable products for defensive income investors.

Hard To Imagine Retirement Portfolio Without These 2 Blue Chips, Part 2

Capital Southwest

Enbridge

Realty Income Corp

Plains All American Pipeline

Schwab US Dividend Equity ETF

STAG Industrial

Achieving the first $100,000 is crucial for portfolio diversification and accessing material reinvestment opportunities. If the objective is to build a massive snowball from durable income investments, there are only a few asset classes that tick the necessary boxes. In this article, I explain how I would allocate $100,000 among MLPs, BDCs, equity REITs, and SCHD.

Invest $100,000 For Durable Income Without Losing Sleep At Night

Blackstone Group

EPR Properties

Energy Transfer LP Unit

LyondellBasell Industries

MPLX

National Retail Properties

Building a dividend snowball is a great way to compound wealth over the long term and achieve financial freedom. We discuss eight great candidates for building a big dividend snowball. These stocks combine very high yields with powerful dividend growth.

8 High Yields For A Big Dividend Snowball

For prudent retirement income seeking investors, securities that could be considered strategic fits should carry sound balance sheet, conservative cash flow profiles and at least above inflation-level growth prospects. In some situations, such strategic investments could also be tactically attractive in terms of producing strong returns over the near to medium-term. In this article, I present two investments that, in my opinion, should be seriously considered by defensive income investors.

2 Dividends That Are Strategically And Tactically Attractive For Retirement Investors

Total Commitments Increased to $600.0 Million Final Maturity of the Facility Extended to September 2029 HOUSTON , Oct. 1, 2024 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that its wholly-owned subsidiary, MSCC Funding I, LLC ("MSCC Funding"), recently amended its special purpose vehicle revolving credit facility (the "SPV Facility"). The recently closed amendment provides an increase in total commitments from $430.0 million to $600.0 million, while maintaining an expanded accordion feature that allows for an increase up to $800.0 million of total commitments from new and existing lenders on the same terms and conditions as the existing commitments.

Main Street Announces Amendment of its SPV Credit Facility

Main Street Capital's 70% NAV premium is excessive, especially when compared to peers like Ares Capital and Blue Owl Capital with better yields and lower NAV multiples. Despite solid dividend pay-out metrics and portfolio growth, MAIN's premium valuation is not justified for passive income investors seeking higher yields. The central bank's anticipated interest rate cuts make BDCs less attractive, and MAIN's 8% yield doesn't warrant its high NAV premium.

Main Street Capital: Overpriced 8% BDC Yield

Gladstone Investment

Investcorp Credit Management BDC Inc

Triplepoint Venture Growth BDC

The fears of BDC dividends becoming unsustainable are rising. The primary driver for this is falling interest rates. While I fully appreciate this risk, in my opinion, by being very selective, investors can keep their attractive BDC dividends safe.

2 Lessons From BDCs That Recently Cut Their Dividends

FS KKR Capital Corp

Golub Capital BDC

Morgan Stanley Direct Lending Fund

Blue Owl Capital Corp

Prospect Capital

The Federal Reserve's 50 basis point rate cut impacts BDCs, which are sensitive to short-term rate changes, affecting their net investment income. BDCs thrive during rate hikes but face challenges with rate cuts, potentially leading to declining net investment income and increased non-accruals. I take a look at 10 leading BDCs and share my pick for the best one to own in the current environment.

The Best BDC To Buy For Fed Rate Cuts

We take a look at the action in business development companies through the second week of September and highlight some of the key themes we are watching. BDCs had a strong week with a nearly 2% total return; sector valuations are close to long-term averages, about 6% below recent peaks. Private lenders like Golub and Apollo are increasingly trading private loans, enhancing income and gaining informational advantages over less adept players.

BDC Weekly Review: Private Lenders Are Getting Into The Trading Business

Ares Commercial Real Estate

AGNC Investment

ARMOUR Residential REIT

Blackstone Mortgage Trust

Chimera Investment

Dynex Capital

Ellington Financial

Granite Point Mortgage Trust

MFA Financial

Annaly Capital

New York Mortgage Trust

Orchid Island Capital

PennyMac Mortgage Investment

Ready Capital Corp

Rithm Capital Corp

Two Harbors Investment

I frequently discuss high-yield sectors like mortgage REITs, BDCs, and preferred shares, emphasizing the importance of knowing when not to buy. Preferred shares have rallied above targets, reducing buying opportunities, while common shares offer higher risks. Some offer upside, but others mostly offer downside. I'll kick off the weekend by highlighting one with a high valuation, as investors pay top dollar for earnings that are about to melt away.

The High Yield Desert

Altria

Dividend growth stocks may not be the most exciting, but over the long term, all the dividend increases can really add up to meaningful cash flow in the later years. Every month we screen through for potential dividend growers looking for dividend safety, growth potential and consistent dividend payers. This month, we have three income favorites, one of which we haven't touched on since early 2022, and two new names to look at.

September's 5 Dividend Growth Stocks With 5.11%+ Yields

Main Street Capital is overvalued, trading at a 67.62% premium to NAV and a 12.51x multiple on NII, compared to peers. Despite strong management and consistent dividend growth, MAIN's valuation makes it unattractive compared to other BDCs like Ares Capital with better metrics. MAIN's credit risk is a concern due to its focus on middle-market companies, which may struggle in a recession or high-interest-rate environment.

Main Street Capital Is Overvalued Despite Returning More Capital To Shareholders

Compass Diversified Holdings

High-yield stocks have rebounded due to optimism over Federal Reserve rate cuts. However, there remain several high-quality high-yield stocks that have lagged the sector's recovery and remain attractive bargains. We discuss some of them in this article.

Buy The Dip: High-Yield Stocks Getting Way Too Cheap

Cohen & Steers Infrastructure Fund Inc

My goal is to build a portfolio generating $50,000 in annual dividend income by age 40, focusing on defensive, yield-bearing assets. Apart from the contributions, key assumptions to make this happen is to invest in assets that produce 7% yield from start, offer 2% of annual growth and, importantly carry limited risk. In this article I elaborate more on my objectives, underlying assumption base and the key cornerstones of portfolio.

How To Achieve $50,000 Of Sustainable Annual Portfolio Income In 10 Years

Despite a significant premium over NAV, Main Street Capital has consistently outperformed the broader BDC market, demonstrating strong and stable performance. By assessing the Q2 2024 data points, the case, in my opinion, has become even more attractive despite the presence of a notable premium over NAV. In this article, I elaborate on why I have remained bullish and why the premium should not scare away investors.

Main Street Capital: The Fears Of Premium Are Overblown

PennantPark Investment

Trinity Capital

We take a look at the action in business development companies through the first week of September and highlight some of the key themes we are watching. BDCs were down around 1% this week, with lower valuation BDCs like MRCC, PSEC, and WHF outperforming. Investors should be cautious about NII figures, as preferred dividends can reduce the actual income available to common shareholders, impacting perceived dividend coverage.

BDC Weekly Review: Common Shareholders Don't Always Have Claim To All Of NII

The latest trading day saw Main Street Capital (MAIN) settling at $49.95, representing a +0.95% change from its previous close.

Main Street Capital (MAIN) Beats Stock Market Upswing: What Investors Need to Know

HOUSTON , Sept. 11, 2024 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it has priced an underwritten public offering of an additional $100 million in aggregate principal amount of its 6.50% notes due 2027 (the "Notes").

Main Street Prices Public Offering of $100 Million of 6.50% Notes due 2027

HOUSTON , Sept. 10, 2024 /PRNewswire/ -- MSC Income Fund, Inc. (the "Company") is pleased to announce that it recently filed a Definitive Proxy Statement (the "Definitive Special Proxy Statement") with the U.S. Securities and Exchange Commission (the "SEC") in connection with the Company's upcoming Special Meeting of Shareholders (the "Special Meeting"), which will be held on Monday, December 2, 2024, in the East-West Conference Rooms at 1330 Post Oak Boulevard, 2nd Floor, Houston, Texas 77056, commencing at 9:00 a.m.

MSC Income Fund, Inc. Files Definitive Proxy Statement in Connection with Potential Listing of its Shares on a National Securities Exchange

Current high interest rates provide an opportunity for retirement investors to secure defensive and meaningful dividend yields before rates potentially decline. Main Street Capital offers a robust 8.4% dividend yield, supported by strong credit metrics, diversified portfolios, and a conservative leverage profile. Plains All American Pipeline provides a 7.3% yield, backed by stable cash flows, healthy CapEx, and substantial dividend coverage, with potential for future increases.

2 Big Dividends That Are Worthy Of Your Retirement Portfolio

CION Investment Corp

Blue Owl Capital Corp III

Vanguard Real Estate ETF

BDCs have outperformed REITs since early 2022 due to rising short-term interest rates and a strong economy, but dynamics shifted in July. With long-term rates declining and recession fears rising, BDCs face dividend cut risk. One BDC recently slashed its dividend aggressively and more are likely to follow.

Dividend Cut Alert: Bad News For BDCs

Main Street Capital (NYSE: MAIN) stock price is firing on all cylinders as it continues to outperform the S&P 500 index.  Its stock has risen by 15.7% this year while the S&P 500 index is up by over 17%.

Main Street Capital stock: beating BDCs and S&P 500, but there's a catch

News for Main Street Capital Stock (MAIN)