Want a Big Monthly Dividend? Buy Main Street Capital Stock
When you're retired or are approaching retirement, having significant sources of monthly passive income can provide you with some extra peace of mind. There are dozens of companies that pay their dividends on a monthly basis. But they are not all created equal: Some dividends are safer than others.
Business development company (BDC) Main Street Capital (NYSE: MAIN) is a monthly dividend payer with a payout that's arguably safe. Here are three reasons the stock is a buy for investors seeking stable sources of passive income.
When the BDC business model is executed properly, it can be tremendously profitable. These companies hook smaller, less-established businesses up with the capital they need to finance expansion projects. In exchange, BDCs receive either an ownership position in the business or a debt stake yielding an above-average interest rate.
Source Fool.com
