Most dividend stocks pay investors every three months. Main Street Capital (MAIN +0.70%) and Gladstone Investment (GAIN +0.38%) do it every month.
Both are business development companies, or BDCs, which provide capital to businesses that often have limited access to traditional financing. And because BDCs generally distribute most of their taxable income to shareholders, they can offer dividend yields considerably higher than the broader market.
Here's a closer look at both of them.
Main Street Capital
This is one of the larger and more established BDCs in the market, with roughly $9 billion in capital under management. Its primary business involves providing debt and equity capital to lower-middle-market companies, typically those too small to easily access public debt markets yet large enough to require significant financing. This has created an impressive income stream for shareholders.
Main Street currently pays a regular monthly dividend of $0.265 per share, or $3.18 annually. At a recent share price of around $57.00, that works out to a yield of roughly 5.6% from the regular dividend alone.
Image source: Getty Images.
Main Street has also been paying supplemental dividends. In September, for instance, shareholders are scheduled to receive an additional $0.30 per share. At a $57 share price, annualizing its current regular and supplemental dividends produces a yield of roughly 7.7%.
In Q2, Main Street generated $149.6 million in total investment income and $90.3 million in net investment income. Distributable net investment income reached $1.04 per share. Main Street also ended June with a net asset value of $33.92 per share, up from $33.33 at the end of 2025. Annualized return on equity reached 18.9% during the quarter, while investments on non-accrual status represented just 1.1% of the portfolio at fair value.
NYSE: MAIN
Key Data Points
There is interest rate risk here, though. Many BDC loans carry floating rates, so falling rates can reduce investment income. Credit deterioration among portfolio companies could also pressure earnings.
Still, Main Street has never reduced its regular monthly dividend since going public in 2007. In fact, its current monthly payout is nearly 4% higher than it was a year ago. If you're an income investor, that's a strong track record.
Gladstone Investment
Gladstone Investment is much smaller, with a market capitalization of roughly $631 million, but it offers another attractive monthly income stream. Unlike BDCs that concentrate primarily on lending, Gladstone typically invests in both debt and equity securities of established lower-middle-market businesses. That equity exposure also lets Gladstone make money when one of its portfolio companies is sold at a profit.
Shareholders currently receive a monthly distribution of $0.08 per share. That translates to $0.96 annually and a yield of approximately 6% at a stock price of around $16. Gladstone has maintained that $0.08 monthly distribution throughout 2025 and 2026. It has also periodically returned additional cash through supplemental distributions, including a $0.54-per-share supplemental payment in June 2025. That structure can make Gladstone particularly attractive if you want current income but don't necessarily want to give up the potential upside associated with equity investments, although there are risks.
NASDAQ: GAIN
Key Data Points
Gladstone is significantly smaller than Main Street, and its portfolio companies can be more vulnerable during an economic downturn. Gladstone primarily invests in businesses generating $5 million to $25 million in annual earnings before interest, taxes, depreciation, and amortization (EBITDA). These are companies, it says, that are generally too small for the larger capital marketplace. Essentially, these businesses can have fewer financial resources than larger companies, leaving them more exposed when economic conditions deteriorate.
That said, you're also being compensated for taking those risks with a roughly 6% yield and monthly payments. So if you're looking to generate regular portfolio income, Main Street and Gladstone offer something most financial stocks don't: cash arriving 12 times a year instead of four.
