Is Main Street Capital a Great Dividend Stock?
Business development companies, or BDCs, help fuel the hundreds of thousands of small- and mid-sized businesses in the United States. These companies provide financing for businesses, usually in the form of loans, to allow for leveraged buyouts, cash to buy other businesses, or to facilitate internal growth.
Main Street Capital (NYSE: MAIN) provides both illiquid debt and equity funding, primarily to lower middle-market companies. What does that mean?
Main Street lends money to or directly invests in smaller, privately owned businesses that typically generate annual sales between $10 million to $150 million. In contrast, larger-scale BDCs, like Apollo Investment, will invest in companies that have revenues ranging from $50 million to $2 billion.
Source Fool.com
