Main Street Capital Corporation (MAIN): A Bull Case Theory

We came across a bullish thesis on Main Street Capital Corporation on Investing Lawyer’s Substack. In this article, we will summarize the bulls’ thesis on MAIN. Main Street Capital Corporation’s share was trading at $63.99 as of August 1st. MAIN’s trailing and forward P/E were 10.85 and 15.60 respectively according to Yahoo Finance.

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Main Street Capital (MAIN) is a leading Business Development Company (BDC) known for its reliable monthly dividend payments, offering investors steady income with a current yield of approximately 7.4%. This income-focused strategy appeals to investors seeking predictable cash flow. The company’s strength lies in its diversified portfolio of middle-market investments and a disciplined capital allocation approach, which supports the sustainability and growth of its dividends over time. MAIN has an impressive track record of consistency, having never missed a dividend, and continues to prioritize high-quality, cash-generating businesses to enhance shareholder returns.

The stock has demonstrated a stable trading pattern over recent years, moving within established trend lines, indicating resilience and investor confidence. While short-term price fluctuations may occur, MAIN is expected to maintain its upward momentum over the long term. Even in a scenario where the price corrects toward the $52–$55 range, technical indicators suggest a likely continuation of its positive trajectory thereafter. There are no strong signals of a prolonged downtrend, reinforcing the view of MAIN as a stable income-generating investment.

In addition to its attractive yield, MAIN’s unique feature of monthly dividends sets it apart from many peers, making it a compelling choice for investors seeking both stability and regular income. With its proven business model, focus on quality assets, and commitment to delivering shareholder value, MAIN offers a strong combination of income and potential price appreciation, making it a top pick for long-term, income-oriented portfolios.

Previously, we covered a bullish thesis on McCormick & Company, Incorporated (MKC) by Investing Lawyer in February 2025, which highlighted its dividend growth consistency, defensive positioning, and key support levels near $70. The company’s stock price has depreciated by approximately 13.91% since our coverage, as technical weakness persisted. The thesis still stands given MKC’s strong fundamentals. Investing Lawyer shares a similar view on Main Street Capital but emphasizes its higher yield and monthly dividends.

Main Street Capital Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held MAIN at the end of the first quarter which was 9 in the previous quarter. While we acknowledge the risk and potential of MAIN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MAIN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.