<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Main Street Capital is a business development company. </li><li>It pays out a monthly dividend with a yield of nearly 6%. </li><li>It has raised its dividend for 18 years in a row.</li><li>10 stocks we like better than Main Street Capital ›</li></ul>In these uncertain times, more investors are seeking out stable companies that consistently pay high dividend yields year after year. Thatʻs not always easy to find in one stock, because high yields often mean the stock price has dropped since the yield is how much dividend income the stock pays annually in relation to the stock price.If the stock price drops, the yield will go up if the company maintains or raises the dividend. A high yield is great, but if itʻs because the stock is dropping, it may signal broader issues, and it could be a red flag that the company will have trouble maintaining its dividend level.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »So, when you find a high-yield dividend stock that reliably increases its payout every year, thatʻs a pretty good thing. You can find that in Main Street Capital (NYSE: MAIN).<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2Mjc5MC9nZXR0eS1kZWJ0LXdvcnJ5LXdvcnJpZWQtY29uY2Vybi5qcGcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="427" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2Mjc5MC9nZXR0eS1kZWJ0LXdvcnJ5LXdvcnJpZWQtY29uY2Vybi5qcGcmdz03MDA"/>Image source: Getty Images. <h2>18 years of dividend raises</h2>Letʻs get right to the point: Main Street Capital has a ridiculously high dividend yield of 5.9%, which is about five times higher than the average yield on the S&amp;P 500. Further, its five-year average dividend yield is 6.2%, so its yield has consistently been high. It has also increased that dividend for 18 years in a row and counting. There are very few dividend stocks that offer that high a yield and have raised their dividend for that many years.Main Street Capital also has the distinction of paying out its dividend monthly as opposed to quarterly. So investors will get those payouts 12 times a year, as opposed to four.There are a few major reasons that Main Street capitalʻs dividend is so strong. For starters, it is a business development company (BDC), which is mandated by federal law to pay out 90% of annual taxable income in dividends in exchange for certain tax breaks. So, quite literally, BDCs are built to provide dividends.However, while BDCs typically pay out high yields, the dividends are often subject to trends in their industries or macroeconomics. Thatʻs because BDCs are companies that provide small- and mid-sized businesses with funding either through loans, debt financing, or private equity. Its customers are typically companies that canʻt get loans or funding from traditional banks, so they take on more risk, which can create volatile returns and dividends.<h2>Main Street Capital offers some advantages</h2>Main Street Capital has been able to manage the volatility better than most BDCs for a few reasons. One of its major advantages is its internal management, while most other BDCs are managed by third-party companies.So, with its own staff running the company, Main Street Capital doesn't pay third-party fees. Over time, it has been able to keep expenses lower through economies of scale. In addition, the efficiency that comes from being internally managed allows the company to be more selective in its underwriting and investments and think longer term. Unlike many BDCs, it takes equity ownership in many of its companies, which offers longer-term benefits. Further, the structure aligns the company more directly with its shareholders.These factors have all made Main Street Capital one of the most reliable high-yield dividend stocks you can get.<h2>Should you buy stock in Main Street Capital right now?</h2> Before you buy stock in Main Street Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Main Street Capital wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $532,066!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,087,496!* Now, it’s worth noting Stock Advisor’s total average return is 926% — a market-crushing outperformance compared to 185% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of April 3, 2026. Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

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Main Street Capital, a business development company, has raised its monthly dividend for 18 consecutive years, currently offering a yield of 5.9%. This high yield is significantly above the S&P 500 average. The company benefits from internal management, allowing for lower expenses and better investment decisions. However, potential investors should note that it was not included in a recent list of top stock recommendations by The Motley Fool, which identified 10 other stocks with high return potential.

- Main Street Capital is a business development company offering a monthly dividend with a yield of 5.9%, consistently raising it for 18 years.  
- The company is internally managed, which helps maintain lower expenses and better manage volatility compared to other BDCs.  
- While attractive, potential investors should compare Main Street Capital to other high-performing stocks recommended by analysts for greater returns.

This High-Yield Dividend Stock Has Raised Its Payout for Over a Decade