No. of Recommendations: 0
It is the most richly valued of all the BDCs I keep an eye on, seemingly due to the excellent performance of its equity holdings (for both income and capital appreciation purposes. I'm absolutely not sure what the market price will do from here, and I'm also not sure I would want to buy at this price.

I did a simple Dividend Discount analysis with a discount rate of 12% (my desired annual return), a dividend growth rate of 7% (their 5 year annual growth rate is at 10%), and the current dividend of $2.22 ( I didn't include the possibility/probability of any special dividends) and got a fair discounted price of $55. If you reduce the dividend growth rate to 6% that fair price goes down to just below $45.

I am a fan of management and will continue to hold for the time being regardless of price movement. I have a pretty large position now so I don't think I will be buying anytime soon.

Thad
(long MAIN)
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