MAIN vs O: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
O yields 0.18% more than MAIN. In dollar terms, MAIN pays $3.00/share vs O's $3.21/share annually.
Dividend Growth
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: 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: The payout ratio of 3% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.3x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in MAIN vs O today?
At $59.60 per share, $10,000 buys about 167.8 shares of Main Street Capital Corporation (MAIN). Each share pays $3.00 per year in dividends, so the position starts out generating roughly $503 per year — about $42 a month.
At $65.62 per share, $10,000 buys about 152.4 shares of Realty Income Corporation (O). Each share pays $3.21 per year in dividends, so the position starts out generating roughly $488 per year — about $41 a month.
MAIN is the larger income stream from day one: $15 per year more on the same $10,000 invested.
What could $10,000 of MAIN or O income look like in 10 years?
Main Street Capital Corporation (MAIN) has raised its dividend about 7.7% a year over the past five years. If that pace held, the $483 per year that $10,000 generates today at the current 4.83% yield would reach $1,011 per year by 2036 — a 10.1% yield on the original cost.
Realty Income Corporation (O) has raised its dividend about 8.2% a year over the past five years. If that pace held, the $502 per year that $10,000 generates today at the current 5.02% yield would reach $1,102 per year by 2036 — a 11.0% yield on the original cost.
On those trailing rates, O pays more in 2036: $1,102 versus $1,011 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would MAIN's dividend growth overtake O's higher yield?
It doesn't, on the trailing numbers. Realty Income Corporation (O) yields more today (5.02% vs 4.83%) and has also grown its dividend at least as fast (8.2% vs 7.7% a year over five years). Unless MAIN accelerates its raises or O stumbles, MAIN never closes the income gap — O wins on both current income and growth.
Can MAIN and O afford their dividends?
Main Street Capital Corporation (MAIN) earns $6.04 per share against $3.00 paid out in dividends — 2.0x coverage (a 70% payout ratio).
Realty Income Corporation (O) earns $1.07 per share against $3.21 paid out in dividends — 0.3x coverage (a 3% payout ratio).
MAIN's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for O if earnings weaken.
Which fits an early-retirement income portfolio better, MAIN or O?
For income you need right now, Realty Income Corporation (O) leads: $100,000 invested today pays about $418 a month at the current 5.02% yield, versus $403 a month from Main Street Capital Corporation (MAIN) at 4.83%.
O also leads on dividend growth (8.2% vs 7.7% a year over five years), so the trailing numbers favor it on both fronts.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $1,621/yr in MAIN vs $1,798/yr in O by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
Track MAIN and O in your portfolio
See your real income from both — forward projections, yield on cost, and dividend safety signals. Sync your brokerage free for 30 days, or track holdings manually on the free plan.
Choosing a tracker? See the best dividend trackers compared.
Frequently Asked Questions
Related Resources
Individual Stock Analysis
Dividend Tools
Track Your Dividends
More Comparisons
This tool is for educational and informational purposes only and does not constitute investment, financial, tax, or legal advice. Consult a licensed professional before making investment decisions.
Past performance does not guarantee future results. All projections are hypothetical estimates based on user-provided inputs and may differ materially from actual outcomes.
By using this tool you agree to our Terms of Service and Privacy Policy.