Following continued requests, this article analyzes MAIN’s dividend sustainability by performing three tests based on recent historical and projected future quarterly results.
The first two tests analyze MAIN’s net ICTI and cumulative UTI which are based on IRC methodologies.
The third test focuses on the probability of MAIN continuing to provide special periodic dividends in the future. This includes a projection for the second half of 2018.
This article also provides cumulative UTI coverage ratios for thirteen BDC stocks I currently cover (very good dividend sustainability metric).
Summarized results from the three tests performed, including a projection for MAIN’s monthly dividend for September-November 2018, are stated within the “Conclusions Drawn” section of the article.
Author’s Note: This article is a detailed analysis of Main Street Capital Corp.’s (MAIN) dividend sustainability. I have performed this analysis due to the continued number of readers who have specifically requested such