1Wk·

📢 Recent discovery: Main Street Capital💼💸

I met the Main Street Capital a little while ago, it seems tailor-made for my dividend investor 😂

✔️ Monthly dividends

✔️ High yield

✔️ Solid and apparently well-managed business

✔️ Consistent distribution history (and even extra dividends!)

It was one of those companies that, as soon as I discovered it, I thought:

"How come I've only just discovered this?"

🔍 For now I'm going to start following her closely and accumulate it progressively.

It fits perfectly with my goal of building a stable and growing passive income portfolio.

#DividendInvesting
#MainStreetCapital
#RendimentoPassivo
#Investimento
#AçõesUSA
#BDC
#CarteiraDeDividendos
#LongoPrazo

23.04

Main Street Capital

Bought x4 at $53.90

$215.60

6 Comments

Redrivercity@GABF

1Wk

It's on my radar... :)

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Nuno Ferreira@Nunalho

1Wk

@GABF Brutal! Also because this company diversifies a lot within the most common dividend portfolio. Bearing in mind that its business is loans and participations.

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DinisCarvalho@DinisCarvalho

1Wk

It's that famous company that you only buy and don't sell

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Marco@Giannini

I've had it for a while now. There are some concerns about whether the dividend is sustainable as it seems to be paying out on debt.

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Nuno Ferreira@Nunalho

@Giannini What do you mean? The dividend is 90% of the company's profit

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Marco@Giannini

Main Street Capital

May 10
New major risk - Revenue and earnings growth
Earnings are forecast to decline by an average of 23% per year for the foreseeable future.

This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns.

Currently, the following risks have been identified for the company:

Major Risks

Debt is not well covered by operating cash flow (currently running at an operating cash loss).
Earnings are forecast to decline by an average of 23% per year for the foreseeable future.
Minor Risks

Paying a dividend despite having no free cash flows.
Large one-off items impacting financial results.
Significant insider selling over the past 3 months (US$18m sold).

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