CA - Main Street Capital: Higher-For-Longer Is Good News

2024-06-25 08:30:00 ET

Summary

• Main Street Capital investors suffered a momentary pullback in May 2024.
• However, dip-buying has returned as investors prepare for a higher-for-longer Fed.
• Main Street Capital's NAV per share is expected to remain resilient, adding visibility to its dividends.
• Given its robust buying momentum, income investors are urged to remain on board.
• Unless you expect a severe recession to unfold, I argue why Main Street Capital remains a solid business development company bet.

Main Street Capital Stock Remains Robust

Main Street Capital ( MAIN ) stock hasn't disappointed, even as it suffered near-term downside in May 2024. The recent broad market volatility also led to a pullback in the business development company's stock. However, dip-buying sentiments have been assessed to remain robust, corroborating well for a higher-for-longer Fed. I urged investors to stay bullish on MAIN in my previous update in April 2024. I determined that MAIN's relatively attractive valuation and dividend stability should underpin investor confidence in its execution....

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