MAIN vs O: Dividend Yield, Growth & Safety Comparison
Main Street Capital Corporation (MAIN) from Financials and Realty Income Corporation (O) from Real Estate offer different dividend profiles for income-focused portfolios. Both stocks offer similar yields — MAIN at 4.83% and O at 5.02%. Both stocks show similar dividend growth rates, each around 7.7% over the past five years. O holds the edge in dividend safety with a "Safe" rating.
Key Metrics Comparison
| Metric | MAIN | O |
|---|
| Dividend Yield | 4.83% | 5.02% |
| Annual Dividend | $3.00 | $3.21 |
| 5-Year CAGR | 7.7% | 8.2% |
| Payout Ratio | 70% | 3% |
| Consecutive Years | 0 | 0 |
| Price | $59.60 | $65.62 |
Yield Comparison
Realty Income Corporation (O) currently yields 5.02%, which is attractive for the broader market. That's 0.18% more than Main Street Capital Corporation (MAIN), which yields 4.83%. In dollar terms, O pays $3.21/share annually versus MAIN's $3.00/share.
Dividend Growth
Over the past five years, O has grown its dividend at a 8.2% CAGR compared to MAIN's 7.7%. MAIN: Dividend growth is accelerating — the 3-year CAGR of 14.2% exceeds the 5-year rate of 7.7% and the 10-year rate of 5.8%. O: Dividend growth is accelerating — the 3-year CAGR of 11.4% exceeds the 5-year rate of 8.2% and the 10-year rate of 5.6%.
Dividend Safety
MAIN's dividend safety is rated "Moderate." The payout ratio of 70% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 2.0x. O's dividend safety is rated "Safe." The payout ratio of 3% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.3x. O's payout ratio of 3% is more conservative than MAIN's 70%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in O generates approximately $502/year in dividend income, compared to $483/year from MAIN — a difference of $19/year. At $100,000, that gap widens to $190/year.
Verdict
- Best for income: O
- Best for growth: O
- Best for safety: O
Frequently Asked Questions
Which has a higher dividend yield, MAIN or O?
Realty Income Corporation (O) has a higher dividend yield of 5.02% compared to Main Street Capital Corporation (MAIN) at 4.83%.
Is MAIN or O a better dividend growth stock?
Realty Income Corporation has the stronger dividend growth with a 5-year CAGR of 8.2%, compared to Main Street Capital Corporation's 7.7%.
Which is safer for dividend income, MAIN or O?
Main Street Capital Corporation's dividend safety is rated "Moderate" while Realty Income Corporation is rated "Safe." The payout ratio of 70% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 2.0x. The payout ratio of 3% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.3x.
How much income does $10,000 in MAIN vs O generate?
A $10,000 investment in MAIN generates approximately $483/year in dividends, while the same amount in O generates about $502/year.
Which has a lower payout ratio, MAIN or O?
Realty Income Corporation has a lower payout ratio of 3% compared to Main Street Capital Corporation's 70%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
MAIN vs O: which is better for retirement income?
It depends on your priorities. O for current income, O for dividend growth, O for safety. Many retirement investors hold both for diversification.
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