MAIN vs USB: Dividend Yield, Growth & Safety Comparison
Main Street Capital Corporation (MAIN) and Us Bancorp De (USB) are both in the Financials sector, making them natural rivals for dividend investors. MAIN offers a significantly higher 4.83% yield compared to USB's 3.37%, a gap of 1.46%. For dividend growth, MAIN leads with a 5-year CAGR of 7.7% versus USB's 3.8%. USB holds the edge in dividend safety with a "Safe" rating. USB is a Dividend Contender with 15 years of consecutive increases.
Key Metrics Comparison
| Metric | MAIN | USB |
|---|
| Dividend Yield | 4.83% | 3.37% |
| Annual Dividend | $3.00 | $2.04 |
| 5-Year CAGR | 7.7% | 3.8% |
| Payout Ratio | 70% | 44% |
| Consecutive Years | 0 | 15 |
| Price | $59.60 | $57.63 |
Yield Comparison
Main Street Capital Corporation (MAIN) currently yields 4.83%, which is attractive for the broader market. That's 1.46% more than Us Bancorp De (USB), which yields 3.37%. In dollar terms, MAIN pays $3.00/share annually versus USB's $2.04/share.
Dividend Growth
Over the past five years, MAIN has grown its dividend at a 7.7% CAGR compared to USB's 3.8%. 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%. USB: Dividend growth is slowing — the 3-year CAGR of 2.8% trails the 5-year rate of 3.8% and the 10-year rate of 7.4%.
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. USB's dividend safety is rated "Safe." The payout ratio of 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x. USB's payout ratio of 44% is more conservative than MAIN's 70%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in MAIN generates approximately $483/year in dividend income, compared to $337/year from USB — a difference of $146/year. At $100,000, that gap widens to $1460/year.
Verdict
- Best for income: MAIN
- Best for growth: MAIN
- Best for safety: USB
Frequently Asked Questions
Which has a higher dividend yield, MAIN or USB?
Main Street Capital Corporation (MAIN) has a higher dividend yield of 4.83% compared to Us Bancorp De (USB) at 3.37%.
Is MAIN or USB a better dividend growth stock?
Main Street Capital Corporation has the stronger dividend growth with a 5-year CAGR of 7.7%, compared to Us Bancorp De's 3.8%.
Which is safer for dividend income, MAIN or USB?
Main Street Capital Corporation's dividend safety is rated "Moderate" while Us Bancorp De 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 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x.
How much income does $10,000 in MAIN vs USB generate?
A $10,000 investment in MAIN generates approximately $483/year in dividends, while the same amount in USB generates about $337/year.
Is MAIN or USB a Dividend Aristocrat?
Us Bancorp De is a Dividend Contender with 15 consecutive years of increases. Main Street Capital Corporation does not currently qualify for aristocrat status.
Which has a lower payout ratio, MAIN or USB?
Us Bancorp De has a lower payout ratio of 44% compared to Main Street Capital Corporation's 70%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
MAIN vs USB: which is better for retirement income?
It depends on your priorities. MAIN for current income, MAIN for dividend growth, USB for safety. Many retirement investors hold both for diversification.
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