This SWAN BDC Is Still A Buy At $40

This BDC recently released strong Q2-2018 results that reflected strong year-over-year growth in NII. The company continues to cover its dividend payout with net investment income, and then some. The BDC just declared a higher monthly dividend as well. Shares sell for a considerable premium, which I think is worth paying. An investment in the stock yields 7.15 percent (including special dividends).

Main Street Capital Corp. (MAIN) released a solid deck of financials for the second quarter last week. The BDC once again benefited from robust growth in (distributable) net investment income, which was likely the reason why management declared a higher monthly dividend rate going forward. Main Street Capital Corp. easily covers its dividend payout with NII, and continues to make a compelling value proposition at the $40 price level.

Source: Seeking Alpha

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