Daily dividend news for investors in dividend stocks

Assessing Main Street Capital's 2019 Dividend Sustainability (Includes Special Periodic Dividend Projection)

Published Mon, 15 Apr 2019 02:27:31 -0400 on Seeking Alpha

Author’s Note: This article is a very detailed analysis of Main Street Capital Corp.’s (MAIN) dividend sustainability. I have performed this analysis due to the continued number of readers who have specifically requested such an analysis be performed on MAIN at periodic intervals. For readers who just want the summarized conclusions/results, I would suggest to scroll down to the “Conclusions Drawn” section at the bottom of the article.
Focus of Article:
The focus of this article is to provide a detailed analysis with supporting documentation (via three tests) on the dividend sustainability of MAIN through 2019. This analysis will be provided after a brief overview of MAIN’s regulated investment company (“RIC”) classification per the Internal Revenue Code (“IRC”). The first two tests will focus on MAIN’s net investment company taxable income (“ICTI”) and the company’s undistributed taxable income (“UTI”). These two tests will be termed “TEST 1” and “TEST 2”. The third test will focus on MAIN’s unrealized appreciation on investments account and be termed “TEST 3”. After these three tests, I will also include a discussion of MAIN’s recently announced change when it comes to the company’s monthly and special periodic dividend per share rates over the next five years.
Understanding the tax and dividend payout characteristics of MAIN will provide investors with an overall better understanding of the business development company... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
APOLLO INVESTMENT 15.58   18.3 0.85 1.80 11.73
PROSPECT CAPITAL 6.72   13.4 0.50 0.72 10.81
OAKTREE SPECIALTY LENDING 4.90   0.0 -1.39 0.50 10.02
TCP CAPITAL 14.44   18.8 0.77 1.44 10.02
ARES CAPITAL 17.49   8.7 2.02 1.60 9.20
PENNANTPARK FLOATING RATE CAPITAL 13.10   13.9 0.94 1.14 8.78
NEWTEK BUSINESS SERVICES 20.67   0.0 0.00 1.60 7.76
SOLAR CAPITAL 21.34   13.5 1.58 1.64 7.69
OAKTREE STRATEGIC INCOME 8.49   47.2 0.18 0.62 7.41
GOLUB CAPITAL BDC 18.25   13.8 1.32 1.28 7.06
GLADSTONE INVESTMENT 12.37   4.0 3.09 0.82 6.59
MEDLEY CAPITAL 3.31   0.0 -1.63 0.20 5.92
BLACKROCK 480.17   18.1 26.55 13.20 2.84


Older articles featuring Apollo Investment (AINV):
10% Yielding New Mountain Finance Receives Fitch Rating
Road To Financial Independence: New Dividend Record In March
2019 First Quarter Update, 10% High Yield Stocks Massive-Recovery
Gladstone Investment's Dividend Sustainability Analysis (Includes April-December 2019 And Fiscal 2020 Special Periodic...
Strong Buy With 12% Yield With 30%+ Return Potential: TCG BDC
Ares Capital's Dividend, NAV, And Valuation Vs. 14 BDC Peers - Part 2 (Indications Of An Undervalued Stock)
Dividend Cuts For The High-Yield BDC Sector
Dividend Increases For The High-Yield BDC Sector, Part 4: Main Street Capital
Ares Capital's Dividend, NAV, And Valuation Versus 10 BDC Peers - Part 1 (Indications Of An Undervalued Stock)
Dividend Increases For The High-Yield BDC Sector, Part 3: TPG Specialty Lending