Main Street Capital's operating performance tends to mirror the broader economy. Investors should note, however, that like other BDCs, Main Street Capital sometimes pays dividends that exceed earnings. Since its IPO, Main Street has paid cumulative dividends of $32.82 per share, which includes $4.14 per share in special dividends. In late November, MAIN hiked its monthly dividend again, by 4.9% year-over-year to 21.5 cents per share. Main Street Capital pays monthly dividends, which have risen 95% since the fourth quarter of 2007 – the first quarter after the company first went public. MAIN shares have outperformed industry peers and the S&P 500 since its 2007 initial public offering (IPO), generating total returns of 789% through the end of September, versus a 610% return for industry peers and 273% for the S&P 500. In the BDC industry where broad swings in annual performance are common, Main Street Capital stands out for its steady portfolio growth, generally rising DNII (distributable net investment income, a BDC earnings measure) and recurring monthly dividends. Main Street Capital is internally managed, which the firm says minimizes operating costs and better aligns its interests with shareholders. The company earns BDC income from interest on debt investments and dividends, and capital appreciation and realized gains on equity holdings. Main Street Capital's portfolio shows investments in 177 companies collectively valued at $5.1 billion. ![]() The firm provides capital for business expansion, acquisitions, management buyouts and recapitalizations. Main Street Capital ( MAIN (opens in new tab), $42.80) is a business development company (BDC) that invests in the debt and equity of middle-market businesses (i.e., between $10 million to $150 million of annual sales). Most recent annualized dividend (per share): $2.58.Most recent 12-month special dividend (per share): $0.10.The bank has a more impressive track record for special dividends, which have been paid eight years in a row and doubled in 2021 to 8 cents per share. As such, they are forecasting a 13% decline in EPS for the current fiscal year.Īnd while this bank earns poor marks for dividend growth, it has solid grades for dividend consistency and yield.įulton Financial increased its regular dividend by 8% last March, which was its first dividend hike in three years. Wall Street analysts, who have a consensus Hold rating on the financial stock, think the bank may encounter headwinds in 2022 from reducing mortgage refinancing activity tied to rising interest rates. And at year-end, the bank had excess capital on its balance sheet that exceeded regulatory minimums by 14%. Asset quality remained strong non-performing loans were just 0.83% of total loans and FULT had a low net charge-off rate of 0.07%.įulton Financial's earnings per share (EPS) rose 50% in 2021, fueled by strong gains on investments. However, net interest margins declined modestly due to lower yields. The bank's average interest-earning assets rose 8.4% in 2021 to $24.4 billion and average interest-bearing deposits increased. It plans to grow profits by expanding its footprint in urban markets like Baltimore and Philadelphia, consolidating and upgrading its branch network and improving its efficiency ratio. ![]() The bank offers residential and commercial mortgages, wealth management and a variety of other banking services to businesses and retail customers.įulton Bank has delivered steady single-digit growth in both loans and deposits since 2017. Most recent annualized dividend (per share): $0.56įulton Financial ( FULT (opens in new tab), $18.57) owns Fulton Bank, a regional bank with $26 billion in assets that operates approximately 200 branch locations across Pennsylvania, Maryland, Delaware, Virginia and New Jersey.Most recent 12-month special dividend (per share): $0.08.
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