MAIN vs WFC: Dividend Yield, Growth & Safety Comparison
Main Street Capital Corporation (MAIN) and Wells Fargo & Company/Mn (WFC) are both in the Financials sector, making them natural rivals for dividend investors. MAIN offers a significantly higher 4.83% yield compared to WFC's 1.85%, a gap of 2.98%. For dividend growth, WFC leads with a 5-year CAGR of 35.8% versus MAIN's 7.7%. WFC holds the edge in dividend safety with a "Safe" rating.
Key Metrics Comparison
| Metric | MAIN | WFC |
|---|
| Dividend Yield | 4.83% | 1.85% |
| Annual Dividend | $3.00 | $1.70 |
| 5-Year CAGR | 7.7% | 35.8% |
| Payout Ratio | 70% | 27% |
| Consecutive Years | 0 | 0 |
| Price | $59.60 | $86.53 |
Yield Comparison
Main Street Capital Corporation (MAIN) currently yields 4.83%, which is attractive for the broader market. That's 2.98% more than Wells Fargo & Company/Mn (WFC), which yields 1.85%. In dollar terms, MAIN pays $3.00/share annually versus WFC's $1.70/share.
Dividend Growth
Over the past five years, WFC has grown its dividend at a 35.8% 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%. WFC: Dividend growth is slowing — the 3-year CAGR of 30.4% trails the 5-year rate of 35.8% and the 10-year rate of 4.5%.
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. WFC's dividend safety is rated "Safe." The payout ratio of 27% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.7x. WFC's payout ratio of 27% 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 $185/year from WFC — a difference of $298/year. At $100,000, that gap widens to $2980/year.
Verdict
- Best for income: MAIN
- Best for growth: WFC
- Best for safety: WFC
Frequently Asked Questions
Which has a higher dividend yield, MAIN or WFC?
Main Street Capital Corporation (MAIN) has a higher dividend yield of 4.83% compared to Wells Fargo & Company/Mn (WFC) at 1.85%.
Is MAIN or WFC a better dividend growth stock?
Wells Fargo & Company/Mn has the stronger dividend growth with a 5-year CAGR of 35.8%, compared to Main Street Capital Corporation's 7.7%.
Which is safer for dividend income, MAIN or WFC?
Main Street Capital Corporation's dividend safety is rated "Moderate" while Wells Fargo & Company/Mn 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 27% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.7x.
How much income does $10,000 in MAIN vs WFC generate?
A $10,000 investment in MAIN generates approximately $483/year in dividends, while the same amount in WFC generates about $185/year.
Which has a lower payout ratio, MAIN or WFC?
Wells Fargo & Company/Mn has a lower payout ratio of 27% compared to Main Street Capital Corporation's 70%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
MAIN vs WFC: which is better for retirement income?
It depends on your priorities. MAIN for current income, WFC for dividend growth, WFC for safety. Many retirement investors hold both for diversification.
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