“Is Main Street Capital Stock a Buy Now? | MAIN Stock Analysis! |”
MAIN has strong fundamentals and a competitive advantage in issuing shares at a premium, but the total dividend yield is overstated due to unsustainable supplemental payments, and weakening credit quality threatens the valuation premium.
Main Street Capital is one of the greatest monthly dividend paying stocks of all time for a multitude of reasons. However, like most BDC's in the last year, they have really struggled, especially compared to the broader market.
If we just look at the performance versus the S&P 500, we're talking about underperformance of around 30% at least on a price return basis. If we do look at this on a total return basis, it's a little bit of a different story, but they're still significantly underperforming.
This is true whether we look at it over the last year or year to date.