Main Street Announces Second Quarter 2025 Regular Monthly Dividends and Supplemental Dividend Payable in March 2025

Rhea-AI Summary

Main Street Capital (NYSE: MAIN) has announced its second quarter 2025 dividend schedule, declaring regular monthly cash dividends of $0.25 per share for April, May, and June 2025, totaling $0.75 per share for Q2 2025. This represents a 4.2% increase from Q2 2024 dividends and maintains consistency with Q1 2025 distributions.

Additionally, the Board declared a supplemental cash dividend of $0.30 per share payable in March 2025, drawn from undistributed taxable income as of December 31, 2024. Since its October 2007 IPO at $15.00 per share, Main Street has never reduced its regular monthly dividend and will have paid $44.725 per share in cumulative cash dividends including these latest declarations.

The combined regular and supplemental dividends represent $1.05 per share, yielding approximately 6.9% annually based on the February 24, 2025 closing price of $60.58 per share.

Positive

• Regular monthly dividends of $0.25 per share for Q2 2025, representing a 4.2% increase from Q2 2024
• Additional supplemental dividend of $0.30 per share in March 2025
• Total dividends of $1.05 per share with annualized yield of 6.9%
• Consistent dividend history with no reductions since 2007 IPO
• Cumulative dividends of $44.725 per share since IPO

Negative

• None.

Insights

Financial Analyst

Main Street Capital's Q2 2025 dividend announcement offers multiple positive signals for income investors. The company maintained its $0.25 monthly dividend structure while delivering a 4.2% year-over-year increase from Q2 2024 levels. The additional $0.30 supplemental dividend brings the total payout to $1.05 per share, generating a 6.9% annualized yield.

The supplemental dividend is particularly telling - it's funded from undistributed taxable income, essentially excess earnings beyond what's needed for the regular dividend program. This demonstrates MAIN's portfolio is generating more income than required for its base dividend commitment, a healthy indicator of underlying asset performance.

For context, Business Development Companies (BDCs) like MAIN must distribute at least 90% of taxable income to maintain their favorable tax status. The consistent dividend growth since MAIN's 2007 IPO is remarkable in this sector, where dividend cuts are not uncommon during economic stress periods. The cumulative $44.725 per share in dividends represents nearly triple the original $15.00 IPO price in distributions alone.

The 6.9% yield positions MAIN competitively in the BDC landscape, where yields typically range from 6-12%. MAIN generally trades at a premium to book value compared to peers, resulting in a somewhat lower yield but reflecting the market's confidence in its management and track record.

The dividend reinvestment plan (DRIP) mentioned in the release offers a capital-efficient mechanism for MAIN to retain investor capital while providing shareholders a convenient way to compound their investment. For long-term holders, this feature can significantly enhance total returns through automatic reinvestment of these substantial dividends.

The sustainability of MAIN's dividend program ultimately depends on the performance of its underlying middle-market loan portfolio. The company's ability to maintain and grow dividends through various economic cycles suggests strong underwriting standards and effective portfolio management that have so far weathered interest rate fluctuations and market volatility.

Regular Monthly Dividends of $0.25 Per Share for each of April, May and June 2025

Supplemental Dividend of $0.30 Per Share Payable in March 2025

HOUSTON, Feb. 25, 2025 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that its Board of Directors declared regular monthly cash dividends of $0.25 per share for each of April, May and June 2025. These monthly dividends, which will be payable pursuant to the table below, total $0.75 per share for the second quarter of 2025 and are consistent with the regular monthly dividends declared for the first quarter of 2025 and represent a 4.2% increase from the regular monthly dividends paid in the second quarter of 2024. Since its October 2007 initial public offering, Main Street has periodically increased the amount of its regular monthly dividends paid per share and has never reduced its regular monthly dividend amount per share.

Summary of Second Quarter 2025 Regular Monthly Dividends
Declared	Ex-Dividend Date	Record Date	Payment Date	Amount Per Share
2/24/2025	4/8/2025	4/8/2025	4/15/2025	$0.25
2/24/2025	5/8/2025	5/8/2025	5/15/2025	$0.25
2/24/2025	6/6/2025	6/6/2025	6/13/2025	$0.25
		Total for Second Quarter 2025:		$0.75

In addition to the regular monthly dividends for the second quarter of 2025, the Board of Directors declared a supplemental cash dividend of $0.30 per share payable in March 2025. This supplemental cash dividend, which will be payable as set forth in the table below, will be paid out of Main Street's undistributed taxable income (taxable income in excess of dividends paid) as of December 31, 2024.

Supplemental Cash Dividend Payable in March 2025
Declared	Ex-Dividend Date	Record Date	Payment Date	Amount Per Share
2/24/2025	3/20/2025	3/20/2025	3/27/2025	$0.30

Including all dividends declared to date, including the second quarter 2025 regular monthly dividends and the March 2025 supplemental dividend, Main Street will have paid $44.725 per share in cumulative cash dividends since its October 2007 initial public offering at $15.00 per share. Including the second quarter 2025 regular monthly dividends and the March 2025 supplemental dividend, these most recent dividend declarations represent total dividends to Main Street shareholders of $1.05 per share, representing an annualized current yield of 6.9% based on the closing price of $60.58 per share on February 24, 2025.

The final determination of the tax attributes for dividends each year are made after the close of the tax year. The final tax attributes for 2025 dividends are currently expected to include a combination of ordinary taxable income and qualified dividends and may include capital gains and return of capital.

Main Street maintains a dividend reinvestment and direct stock purchase plan (the "Plan"). The dividend reinvestment feature of the Plan (the "DRIP") provides for the reinvestment of dividends on behalf of Main Street's registered stockholders who hold their shares with Main Street's transfer agent and registrar, Equiniti Trust Company, LLC, or certain brokerage firms that have elected to participate in the DRIP. Under the DRIP, if Main Street declares a dividend, registered stockholders who have not "opted out" of the DRIP by the dividend record date will have their dividend automatically reinvested into additional shares of Main Street common stock. The direct stock purchase feature of the Plan (the "DSPP") provides investors with a convenient and economical method to purchase shares of Main Street common stock. More information about the Plan (including the DSPP prospectus) can be found on the Main Street website (https://ir.mainstcapital.com/dividend-reinvestment-and-direct-stock-purchase-plan). 

ABOUT MAIN STREET CAPITAL CORPORATION

Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides customized long-term debt and equity capital solutions to lower middle market companies and debt capital to private companies owned by or in the process of being acquired by a private equity fund. 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 customized "one-stop" debt and equity financing alternatives within its lower middle market investment strategy. Main Street seeks to partner with private equity fund sponsors and primarily invests in secured debt investments in its private loan investment strategy. Main Street's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million. Main Street's private loan portfolio companies generally have annual revenues between $25 million and $500 million.

Main Street, through its wholly owned portfolio company MSC Adviser I, LLC ("MSC Adviser"), also maintains an asset management business through which it manages investments for external parties. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940, as amended.

FORWARD-LOOKING STATEMENTS

This press release may contain certain forward-looking statements, including but not limited to the continued payment and growth of future dividends and the potential tax attributes for 2025 dividends. Any such statements other than statements of historical fact are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under Main Street's control, and that Main Street may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual performance and results could vary materially from these estimates and projections of the future as a result of a number of factors, including those described from time to time in Main Street's filings with the U.S. Securities and Exchange Commission. Such statements speak only as of the time when made and are based on information available to Main Street as of the date hereof and are qualified in their entirety by this cautionary statement. Main Street assumes no obligation to revise or update any such statement now or in the future.

Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, dhyzak@mainstcapital.com 
Ryan R. Nelson, CFO, rnelson@mainstcapital.com
713-350-6000

Dennard Lascar Investor Relations
Ken Dennard / ken@dennardlascar.com 
Zach Vaughan / zvaughan@dennardlascar.com
713-529-6600

View original content:https://www.prnewswire.com/news-releases/main-street-announces-second-quarter-2025-regular-monthly-dividends-and-supplemental-dividend-payable-in-march-2025-302384076.html

SOURCE Main Street Capital Corporation

FAQ

What dividends did Main Street Capital (MAIN) declare for Q2 2025?

Main Street declared regular monthly dividends of $0.25 per share for April, May, and June 2025, totaling $0.75 per share for Q2 2025, plus a supplemental dividend of $0.30 per share payable in March 2025.

How much is MAIN's dividend increase compared to Q2 2024?

Main Street's Q2 2025 regular monthly dividends represent a 4.2% increase from the regular monthly dividends paid in Q2 2024.

What is the current yield of Main Street Capital's (MAIN) dividends?

Based on the February 24, 2025 closing price of $60.58, the combined regular and supplemental dividends represent an annualized yield of approximately 6.9%.

How much has MAIN paid in total dividends since its IPO?

Including all declared dividends to date, Main Street will have paid $44.725 per share in cumulative cash dividends since its October 2007 IPO at $15.00 per share.

Has Main Street Capital (MAIN) ever reduced its monthly dividend?

No, since its October 2007 IPO, Main Street has periodically increased its regular monthly dividends and has never reduced the regular monthly dividend amount per share.

What is the source of MAIN's supplemental dividend in March 2025?

The supplemental cash dividend of $0.30 per share will be paid out of Main Street's undistributed taxable income (taxable income in excess of dividends paid) as of December 31, 2024.