Core Viewpoint - Main Street Capital is highlighted as a top investment choice for passive income due to its reliable and growing dividend payments, making it an attractive option for investors seeking financial independence [2][14]. Company Overview - Main Street Capital is a business development company (BDC) that provides private debt and equity capital to lower-middle-market companies with annual revenues between $10 million and $150 million, as well as debt capital to middle-market companies with revenues over $150 million [4]. - The company has maintained a consistent dividend payment since its IPO in 2007, currently paying $0.255 per share monthly, which translates to an annual yield of 4.6% [6]. Dividend Policy - Main Street Capital distributes a portion of its income to investors through monthly dividends, which are set at a sustainable level, currently 1.4 times its distributable net investment income [5]. - The company has a unique dividend policy that includes both a conservative monthly dividend and periodic quarterly supplemental dividends, which have recently been declared at $0.30 per share [8][9]. Dividend Growth - Since its IPO, Main Street Capital has increased its dividend payout by 132%, including a 4.1% increase over the past year, providing investors with a growing stream of passive income [7]. - The annualized dividend yield, including supplemental dividends, is approximately 6.5%, significantly higher than the S&P 500's yield [9]. Investment Strategy - Main Street Capital aims to be a comprehensive capital solutions provider by offering both debt and equity capital, which allows for additional upside potential beyond dividend income [12]. - The company has grown its net asset value per share by 151% since its IPO, enabling it to provide additional returns through equity investments [13]. Conclusion - Main Street Capital is positioned as an ideal investment for passive income strategies, offering a reliable monthly income stream, supplemental dividends, and potential for capital appreciation through equity investments [14][15].