Main Street Capital Corporation (MAIN)

We take a look at the action in business development companies through the third week of August and highlight some of the key themes we are watching. BDCs remain attractive due to sector-wide valuations that are well below historic averages, providing a margin of safety and boosting earnings yield for investors. Valuation-adjusted total NAV return is a key metric—investors should focus on returns relative to valuation, not just headline numbers or wide discounts.

Main Street Capital (MAIN) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).

BDC earnings are exposed to interest rate cut risks. There is nothing that the managers can do to avoid it. Instead, they can try to mitigate it through balance sheet strength, equity investments, and well-covered dividends.

Main Street Capital has delivered exceptional long-term returns and dividend growth, but its current valuation is excessively high, versus peers. Despite strong Q2 results and a robust, diversified portfolio, MAIN trades at a 104.64% premium to NAV and a low 6.35% yield. Compared to other BDCs, MAIN's net investment income and dividend yield lag, while investors pay the highest market cap-to-NII multiple in the sector.

Main Street Capital remains my top BDC due to its resilience, internally-managed structure, and consistent dividend growth, but I reiterate a 'hold' rating. MAIN's distributable NII and NAV continue to grow despite sector headwinds, thanks to its more optimal debt structure and cost advantages. The premium to NAV is high—over 100%—making new purchases unattractive, but this premium enables MAIN to raise cheap capital and drive long-term value.

HOUSTON , Aug. 18, 2025 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce the dual listing of its common stock on NYSE Texas, Inc. ("NYSE Texas"), the newly launched fully electronic equities exchange headquartered in Dallas, Texas. "As a Texas-based investment firm committed to supporting the growth of privately-held U.S. businesses, we are very proud to join NYSE Texas as a Founding Member.

HOUSTON , Aug. 18, 2025 /PRNewswire/ -- MSC Income Fund, Inc. (NYSE: MSIF) ("MSC Income" or the "Fund") is pleased to announce the dual listing of its common stock on NYSE Texas, Inc. ("NYSE Texas"), the newly launched fully electronic equities exchange headquartered in Dallas, Texas. "As a Texas-based investment firm dedicated to investing in privately-held U.S. companies that operate in diverse industry sectors, we are proud to join NYSE Texas as a Founding Member.

With the market continuing its upward move this year, dividend yields have continued to fall. The S&P 500's yield is around 1.2%, near its lowest level in over two decades.

HOUSTON , Aug. 13, 2025 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it has priced an underwritten public offering of $350 million in aggregate principal amount of 5.40% notes due 2028 (the "Notes"). The Notes will bear interest at a rate of 5.40% per year, payable semiannually, will mature on August 15, 2028 and may be redeemed in whole or in part at Main Street's option at any time at par plus a "make-whole" premium, if applicable.

Second  Quarter 2025 Net Investment Income of $0.35 Per Share Net Asset Value of $15.33 Per Share HOUSTON , Aug. 13, 2025 /PRNewswire/ -- MSC Income Fund, Inc. (NYSE: MSIF) ("MSC Income") is pleased to announce its financial results for the second quarter ended June 30, 2025. Unless otherwise noted or the context otherwise indicates, the terms the "Company" and the "Fund" refer to MSC Income and its consolidated subsidiaries.

Here is how Main Street Capital (MAIN) and ACNB (ACNB) have performed compared to their sector so far this year.

Regular Quarterly Dividend of $0.35 per Share and Supplemental Quarterly Dividend of $0.01 Per Share Payable October 31, 2025 HOUSTON , Aug. 13, 2025 /PRNewswire/ -- MSC Income Fund, Inc. (NYSE: MSIF) (the "Company") is pleased to announce that its Board of Directors declared a regular quarterly cash dividend of $0.35 per share payable in October 2025. Regular Quarterly Dividend Payable in October 2025 Declared Record Date Payment Date Amount Per Share 8/12/2025 9/30/2025 10/31/2025 $0.35 In addition to the regular quarterly dividend, the Board of Directors declared a supplemental quarterly cash dividend of $0.01 per share payable in October 2025.

Main Street Capital Corporation (MAIN) Q2 2025 Earnings Call Transcript

MAIN's Q2 adjusted net investment income meets estimates as rising expenses offset higher total income.

High yield dividend stocks are the personal favorite of investors who want both consistent income and long-term growth.

Main Street (MAIN) Q2 Revenue Up 9%