Why Main Street Capital Is Poised to Pop

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, business development company Main Street Capital (NYSE: MAIN  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Main Street and see what CAPS investors are saying about the stock right now.

Main Street facts

Headquarters (founded)

Houston, Texas (1997)

Market Cap

$1.0 billion

Industry

Diversified investments

Trailing-12-Month Revenue

$84.0 million

Management

Chairman / CEO Vincent Foster
CFO Dwayne Hyzak

Return on Equity (average, past 3 years)

19.3%

Cash / Debt

$19.6 million / $297.1 million

Dividend Yield

5.7%

Competitors

American Capital (NASDAQ: ACAS  ) MCG Capital (NASDAQ: MCGC  ) Sentinel Capital Partners

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 234 members who have rated Main Street believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, brenoboyle, tapped Main Street as a particularly attractive income opportunity:

The company has carved out a very nice niche financing small businesses and pays a [handsome] dividend. I expect the niche has room to grow and conditions should remain favorable as banks are rather tight extending financing. An ironic outcome of [zero interest rate policy] is a lack of lending creating opportunities for a company like Main St. Capital.

If you want to retire rich, you need to put together the best portfolio you can. Of course, despite its five-star rating, Main Street may not be your top choice.

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