Main Street Capital: Dissecting Its Premium Valuation

  • Main Street Capital stock trades at a premium to NAV, but this is justified by consistent NAV growth, tax efficiency, and unique equity investments. Including special dividends, MAIN's yield is higher than it appears, and NAV growth pushes total return to around 10.5% annually. MAIN's internally managed structure and equity investments enable NAV accretion and lower expenses, differentiating it from peers like ARCC.