Main Street Capital funds regular dividends from loan interest earnings

Main Street Capital pays its shareholders a monthly dividend of about $0.265 per share. The money comes from interest earned on loans to smaller, private businesses. In the second quarter, the company earned $1.04 per share in distributable income. This closely matches what it pays out in regular dividends each year. The company also pays a special dividend, usually once or twice a year, worth $0.30 per share. Because Main Street Capital is a regulated investment company, it must return at least 90% of its taxable income to shareholders. The current dividend yield is 5.79%. Income investors often look at where dividends come from. Here, payments are backed by operating earnings, not by selling company assets.