Is Main a BDC?
Is Main a BDC?
Main Street Capital (MAIN) is a business development company, or BDC. Essentially, BDCs serve a market of small companies across the country that regular banks don’t want to touch, helping those businesses fund acquisitions, leveraged buyout (LBO) transactions, recapitalizations, and growth projects.
What does Main Street Capital Corporation do?
Main Street Capital Corporation (NYSE: MAIN) is a principal investment firm, based in Houston, Texas, that provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies.
What does Main Street Capital invest in?
About Main Street Capital Corporation It invests primarily in secured debt investments, equity investments, warrants and other securities of LMM companies and in secured debt investments of Middle Market companies.
Is Main Street Capital A Good investment?
Main Street Capital has received a consensus rating of Buy. The company’s average rating score is 3.00, and is based on 2 buy ratings, no hold ratings, and no sell ratings.
Is Berkshire Hathaway a BDC?
Congress updated the 1940 Act in the 1980s, creating the concept of a BDC as a way to encourage investment in small and mid-sized private (or thinly traded) companies. A BDC is similar to a public holding company, like Berkshire Hathaway.
How safe are BDCs?
BDCs are high risk and are not for conservative income investors seeking steady and steadily rising dividends. They are complex, volatile, and, much like banks, own hard-to-decipher “black boxes” of various loans and financial assets that many investors simply don’t wish to bother with.
How Much Does main pay per share?
Main Street distributes dividends monthly and issues a supplemental dividend twice a year. Currently, the dividend yields $0
Is Main Street Capital an ETF?
Main Street Capital is a principal investment firm primarily focused on providing debt and equity financing to lower middle market (LMM) companies and debt capital to middle market (Middle Market) companies. The portfolio investments of Co….
| ETF | MAIN |
|---|---|
| Exchange | NYSE |
| Price | 41.83 |
| Chg | 0.13 (0.31%) |
| Vol | 41.42K |
Is Main a safe stock?
Main Street’s Dividend Safety Score of 60, meaning that the dividend is about as secure as the average payout on Wall Street. Main Street’s equivalent of free cash flow, what it calls distributable net investment income (DNII), was actually up 10% in 2016 and created an effective FCF payout ratio of 91%.
Is Main a good company?
(MAIN is known as a best-in-breed company, so they still trade at a premium.) This matters little to you if you’re coming in now, as you have a nice dividend yield and asymmetric upside if the industry can successfully lobby Congress and the companies that make indexes to include them.
What is the best BDC?
The Top 4 BDCs Today
- BDC #4: Sixth Street Specialty Lending (TSLX)
- BDC #3: Prospect Capital Corporation (PSEC)
- BDC #2: Main Street Capital (MAIN)
- BDC #1: Ares Capital Corporation (ARCC)
What are the best BDC stocks?
The Best BDC Dividend Stocks For Rising Rates
- BDCs Yield 8.4% Today.
- Hercules Capital (HTGC)
- Dividend Yield: 7.4%
- FS KKR Capital (FSK)
- Dividend Yield: 10.7%
What’s the current yield on Main Street BDC?
If times get tough, the special dividend gets squeezed. This conservatism served the company well in 2020. While many companies across the board had to cut their dividends, Main Street was able to keep its regular monthly dividend intact. At current prices, Main Street yields a very nice 7.7%.
What makes a business development center a BDC?
To qualify as a business development center (BDC), a company must be registered in compliance with Section 54 of the Investment Company Act of 1940. A major difference between a BDC and a venture capital fund is that BDCs allow smaller, non-accredited investors to invest in startup companies.
Which is the largest BDC in the world?
Ares Capital (ARCC, $17.00) is the world’s largest BDC by market cap with a value of nearly $7 billion. It also one of the more conservatively allocated: 45% of its portfolio is invested in first-lien loans, with another 28% in second-lien loans. This means Ares is generally first in line to get paid, or awfully close to it.
What kind of investments can a BDC make?
BDCs make debt and equity investments primarily in established companies, though most focus on “middle market” companies that are often a little too small for the big boys in private equity. This is as close to “Main Street” as Wall Street gets. And as with private equity managers, BDC executives are not passive portfolio managers.