In The Spotlight – Main Street Capital

I especially enjoy the “special dividend” each December. It feels like they are sending me a Christmas present of cash !

Main Street Capital (MAIN) is considered by many to be the the best of breed for Business Development Companies (BDCs).

Main Street Capital provides long term debt to middle market cap companies. According to a recent press release:

”  Main Street’s portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors.  Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides “one stop” financing alternatives within its lower middle market portfolio.  Main Street’s lower middle market companies generally have annual revenues between $10 million and $150 million.  Main Street’s middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies.”

Main is a Monthly Dividend payer ( current Dividend is 0.185 per share) or on an annual basis $2.22 per share. In addition it pays a Special Dividend twice a year in June and December of 0.27 cents per share.

Initial Public Offering (IPO) was October 2007 @ $15.00 per share – Since that time  Main has paid ($20.54 per share in cumulative Dividends)

Main Street Capital has been in my own portfolio for about two years now and quite frankly I wish I had gotten into it much sooner and at a much higher share count than I initially did. I continue to hold the stock and Drip the dividends. At around forty dollars per share at the time of this writing I find it just a little pricey but of course that’s the case with almost every desirable company. If I were initiating a position today I would recommend buying in slowly on any dips.

Some have been predicting with BDCs such as Main facing stiffer competition from banks that BDCs may have to cut their “special dividends”in the future but frankly that is not something I see happening any time soon. As a Dividend Income Investor I don’t make decisions based on what possibly happen but rather what is currently happening. If and when things begin to change – well I will deal with that when the time comes but right now I am enjoying collecting the great dividends that Main Street Capital is generating for my portfolio.

There may be better investments out there but you will have a very hard time finding them!

I especially enjoy the “special dividend” each December. It feels like they are sending me a Christmas present of cash !

 

For More Information visit Main Street Capital’s Website

Please share your thoughts and comments below.

 

Advertisements

Bob Evans Sells its Restaurants

Bob Evans (BOBE) has sold its Bob Evans Restaurants

Bob Evans (BOBE) has sold its Bob Evans Restaurants to Golden Gate Capital for $565 Million. In addition it has acquired Pineland Farms Potato Company.

Bob Evans intends to focus entirely on its food business and intends to expand on its popular side dish offerings.

President and Chief Executive Officer Mike Townsley said, “We are pleased the sale of Bob Evans Restaurants and the acquisition of Pineland Farms Potato Company have been completed as anticipated.  I, along with the rest of the Bob Evans team, look forward to executing on the expanded set of growth opportunities ahead.  We expect to leverage our acquisition of Pineland Farms Potato Company and our superior on-shelf performance to generate continued side-dish sales growth, particularly in expansion markets and new retail channels such as club and convenience stores.  We also expect to grow in the food service channel as we partner with restaurant chains to help them better manage their costs while providing high quality products for their guests.  This strategy is expected to enable a virtuous cycle of cash flow growth to: reward shareholders; attract and retain top talent; and fund capital and marketing investments which we expect to drive both retail and food service sales growth.”

In addition to announcing the sale of its Restaurants and the acquisition of the Pineland Farms Potato Company, Bob Evans also announced that it was paying a “Special Dividend” of $7.50 per share to shareholders of record May 30, 2017 and was payable on June 16, 2017.

Dividend Page