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Originally posted by mimo_100
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Read This MAIN looks super http://seekingalpha.com/article/3717...ety-and-upside
MAIN READ THIS!
MAIN : 14 Dividends a Year, 7% Yield, and 44% Increase in the Dividend Payment
Paying fourteen dividends a year, yielding 7%, and having a four-year track record of superior dividend growth, this may just be the "BEST INCOME" stock that exists.
We can all learn some lessons from an overview of how Main Street Capital Corporation (NYSE: MAIN) operates and pays investors. MAIN is a business development company (BDC) a class of stocks that operate under special laws and tax rules that require them to provide financing to small and mid-size corporations.
There are about 40 publicly traded BDCs, ranging from market caps measured in tens of millions up to Ares Capital Corporation (NASDAQ: ARCC) with almost $5 billion of market value.
A BDC can make either debt (loans) or equity (buying shares) investments in its client companies. Most BDCs focus on the debt side, make high-interest rate business loans with cash for BDC dividends coming from the interest rate spread a BDC earns. Main Street Capital makes plenty of loans, but it also puts a significant amount of capital into equity investments. These investments allow MAIN to participate directly in the growth of its client companies. The two-tier model has worked very well for Main Street Capital, with the strongest evidence coming from MAIN’s dividend payment record.
MAIN has paid uninterrupted monthly dividends since switching from quarterly to monthly in September 2008.
Starting in 2011, MAIN has been able to increase the monthly dividend twice a year every year.
Since 2012, the company has twice a year paid special dividends out of the profits earned from the equity investments. Those special dividends have meaningful value, adding 26% of extra cash income on top of the monthly dividends so far in 2015. The special dividends are paid in December and June, and the date you must own the stock for the December payment is Tuesday, December 15th. That’s a lot closer than you think so you’ll want to act right now.
These facts add up to a very high-quality income investment with a 7% yield on the monthly dividends alone. The specials boost yield to over 9%. The regular dividend increases will result in a 10% yield on cost in just a few years. I know of no other stock that can be counted on to pay you 14 dividends per year and provide a growing cash income stream.
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