Monday, February 1, 2016

Recent Transfer: Main Street Capital Corporation

Main Street Capital Corporation (NYSE:MAIN) is a principal investment firm that provides customized debt and equity financing to lower middle market companies and debt capital to middle market companies. The company invest primarily in secured debt investments, equity investments, warrants, and other securities of companies based in the United States. MAIN was founded in 1997 and is based in Houston, Texas.

MAIN pays dividends monthly and has a 5-year streak of dividend increases. The current annual dividend of yield is $2.18, which means the stock yields 7.48% (at a price of $28.89).

MAIN is the 16
th stock that I'm transferring from my portfolio at Scottrade to DivGro.

Previously, I've transferred the following stocks:

 1.
Coca Cola (NYSE:KO)
9.
Texas Instruments (NASDAQ:TXN)
2.
Proctor & Gamble (NYSE:PG)
10.
Union Pacific (NYSE:UNP)
3.
Kimberly-Clark (NYSE:KMB)
11.
Gilead Sciences (NASDAQ:GILD)
4.
AbbView (NYSE:ABBV)
12.
Reynolds American (NYSE:RAI)
5.
Dominion Resources (NYSE:D)
   13.
Dr Pepper Snapple (NYSE:DPS)
    6.
W.P. Carey (NYSE:WPC)
14.
Ford Motor Company (NYSE:F)
    7.Toronto-Dominion Bank (NYSE:TD)   15.The Walt Disney Company (NYSE:DIS)
    8.
Pfizer (NYSE:PFE)

In the process, I've added $1,437.22 to DivGro's projected annual dividend income and $1,979.50 in past dividends to DivGro's total dividend tally.

MAIN is by far my longest running dividend growth investment. And, because it is a monthly dividend payer, the list of transactions is rather long. Nevertheless, it is interesting to see how a solid dividend growth stock performs over time:

TRANSACTIONS
    2010-03-08 Bought: 33 shares of MAIN at $15.21 per share:$ 502.00
    2010-04-15 Dividend on 33 shares at $12.5¢ per share:$4.13
    2010-05-14 Dividend on 33 shares at $12.5¢ per share:$4.13
    2010-06-15 Dividend on 33 shares at $12.5¢ per share:$4.13
2010-07-15 Dividend on 33 shares at $12.5¢ per share: $4.13
2010-08-16 Dividend on 33 shares at $12.5¢ per share: $4.13
2010-09-15 Dividend on 33 shares at $12.5¢ per share: $4.13
2010-10-15 Dividend on 33 shares at $12.5¢ per share: $4.13
2010-10-25 Bought: 27 shares of MAIN at $16.98 per share: $458.44
2010-11-15 Dividend on 33 shares at $12.5¢ per share: $4.13
2010-12-15 Dividend on 60 shares at $12.5¢ per share: $7.50
2011-01-14Dividend on 60 shares at $12.5¢ per share: $7.50
2011-02-15 Dividend on 60 shares at $12.5¢ per share: $7.50
2011-03-15 Dividend on 60 shares at $12.5¢ per share: $7.50
2011-04-15Dividend on 60 shares at $13.0¢ per share: $7.80
2011-05-15 Dividend on 60 shares at $13.0¢ per share: $7.80
2011-06-15 Dividend on 60 shares at $13.0¢ per share: $7.80
2011-07-11 Bought: 40 shares of MAIN at $19.54 per share: $781.40
2011-07-15Dividend on 60 shares at $13.0¢ per share: $7.80
2011-08-15 Dividend on 100 shares at $13.0¢ per share: $13.00
    2011-09-15 Dividend on 100 shares at $13.0¢ per share:$13.00
    2011-09-19 Bought: 60 shares of MAIN at $18.39 per share:$1,103.39
    2011-10-15 Dividend on 100 shares at $13.0¢ per share:$13.00
    2011-11-15 Dividend on 160 shares at $13.5¢ per share:$21.60
    2011-12-15 Dividend on 160 shares at $13.5¢ per share:$21.60
    2012-01-17 Dividend on 160 shares at $13.5¢ per share:$21.60
    2012-02-15 Dividend on 160 shares at $13.5¢ per share:$21.60
    2012-03-15 Dividend on 160 shares at $13.5¢ per share:$21.60
    2012-04-16 Dividend on 160 shares at $14.0¢ per share:$22.40
    2012-05-15 Dividend on 160 shares at $14.0¢ per share:$22.40
    2012-06-15 Dividend on 160 shares at $14.0¢ per share:$22.40
    2012-07-16 Dividend on 160 shares at $14.5¢ per share:$23.20
    2012-08-15 Dividend on 160 shares at $14.5¢ per share:$23.20
    2012-09-14 Dividend on 160 shares at $14.5¢ per share:$23.20
    2012-10-15 Dividend on 160 shares at $15.0¢ per share:$24.00
    2012-11-15 Dividend on 160 shares at $15.0¢ per share:$24.00
    2012-12-14 Dividend on 160 shares at $15.0¢ per share:$24.00
    2013-01-15 Dividend on 160 shares at $15.0¢ per share:$24.00
    2013-01-23 Special dividend on 160 shares at $35.0¢ per share:$56.00
    2013-02-15 Dividend on 160 shares at $15.0¢ per share:$24.00
    2013-03-15 Dividend on 160 shares at $15.0¢ per share:$24.00
    2013-04-15 Dividend on 160 shares at $15.5¢ per share:$24.80
    2013-05-15 Dividend on 160 shares at $15.5¢ per share:$24.80
    2013-06-15 Dividend on 160 shares at $15.5¢ per share:$24.80
    2013-07-15 Dividend on 160 shares at $15.5¢ per share:$24.80
    2013-08-15 Dividend on 160 shares at $15.5¢ per share:$24.80
    2013-09-15 Dividend on 160 shares at $15.5¢ per share:$24.80
    2013-10-15 Dividend on 160 shares at $16.0¢ per share:$25.60
    2013-11-15 Dividend on 160 shares at $16.0¢ per share:$25.60
    2013-12-15 Dividend on 160 shares at $16.0¢ per share:$25.60
    2013-12-24 Special dividend on 160 shares at $25.0¢ per share:$40.00
    2014-01-15 Dividend on 160 shares at $16.5¢ per share:$26.40
    2014-02-15 Dividend on 160 shares at $16.5¢ per share:$26.40
    2014-03-14 Dividend on 160 shares at $16.5¢ per share:$26.40
    2014-04-15 Dividend on 160 shares at $16.5¢ per share:$26.40
    2014-05-15 Dividend on 160 shares at $16.5¢ per share:$26.40
    2014-06-15 Dividend on 160 shares at $16.5¢ per share:$26.40
    2014-06-25Special dividend on 160 shares at $27.5¢ per share:$44.00
    2014-07-15 Dividend on 160 shares at $16.5¢ per share:$26.40
    2014-08-15 Dividend on 160 shares at $16.5¢ per share:$26.40
    2014-09-15 Dividend on 160 shares at $16.5¢ per share:$26.40
    2014-10-15 Dividend on 160 shares at $17.0¢ per share:$27.20
    2014-11-14 Dividend on 160 shares at $17.0¢ per share:$27.20
    2014-12-15 Dividend on 160 shares at $17.0¢ per share:$27.20
    2014-12-24 Special dividend on 160 shares at $27.5¢ per share:$44.00
    2015-01-15 Dividend on 160 shares at $17.0¢ per share:$27.20
    2015-02-13 Dividend on 160 shares at $17.0¢ per share:$27.20
    2015-03-16 Dividend on 160 shares at $17.0¢ per share:$27.20
    2015-04-15 Dividend on 160 shares at $17.5¢ per share:$28.00
    2015-05-15 Dividend on 160 shares at $17.5¢ per share:$28.00
    2015-06-15 Dividend on 160 shares at $17.5¢ per share:$28.00
    2015-06-25Special dividend on 160 shares at $27.5¢ per share:$44.00
    2015-07-15 Dividend on 160 shares at $17.5¢ per share:$28.00
    2015-08-14 Dividend on 160 shares at $17.5¢ per share:$28.00
    2015-09-15 Dividend on 160 shares at $17.5¢ per share:$28.00
    2015-10-15 Dividend on 160 shares at $17.5¢ per share:$28.00
    2015-11-16 Dividend on 160 shares at $17.5¢ per share:$28.00
    2015-11-16 Bought: 70 shares of MAIN at $30.70 per share:$2149.00
    2015-12-14 Dividend on 230 shares at $18.0¢ per share:$41.40
    2015-12-24 Special dividend on 230 shares at $27.5¢ per share:$63.25
    2016-01-15 Dividend on 230 shares at $18.0¢ per share:$41.40
                                                               
 Total Capital Invested $4,994.23

Total Dividends Received:$1,746.45

With this transfer, DivGro's projected annual dividend income increases by $496.80.

The following chart shows a 6-year price history and when I bought shares. MAIN is an exceptional performer and I'm very happy with my investment, which is up about 68% (or 24% annualized).

Source: TradingView

Why MAIN?


Here are some reasons I like MAIN and why I decided to transfer the shares to DivGro:
  1. MAIN is a Dividend Challenger with a 5-year streak of dividend increases. At the current share price, the stock yields an impressive 7.48%. 
  2. MAIN's dividend has grown at an annualized rate of 7% over the last 5 years. 
  3. Based on MAIN's annualized Q3-15 net investment income of $2.24 per share, the stock sells for just 12.2 times forward NII. 
  4. The stock is trading nearly 13% below its 52-week high of $33.15.
  5. MAIN has been paying special supplemental dividends twice a year for several years now.
Thanks for reading! Do you have any thoughts on MAIN as a dividend growth stock? Please share your thoughts below.

2 comments :

  1. REITs have moved up high recently due to talk of the fed will hold interest rate low longer. It's a great investment.
    Cheers!

    ReplyDelete
    Replies
    1. Hi Vivianne -- I own several REITs in DivGro, so that's good news! MAIN is a business development corporation, which falls into a different category. Like REITs, though, BDCs are interest rate dependent...

      Delete

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