Inside The Bedokian’s Portfolio: Mainstreet Capital

Inside The Bedokian’s Portfolio is an intermittent series where I will reveal what is actually inside our investment portfolio, one company/bond/REIT/ETF at a time. In each post I will talk a bit about the counter, why I had selected it and what lies ahead in the future.

In this post, I shall talk about one of the dividend generating company: Mainstreet Capital (ticker: MAIN).

Business Development Company

Mainstreet Capital is classified as a business development company, or BDC for short. BDCs are organisations that invest in small and medium, as well as distressed, companies by providing funding and managerial support. To avoid being taxed, BDCs have to distribute at least 90% of their income to shareholders, similar to real estate investment trusts (REITs). This explains why their dividend yields are higher than the rest.

BDCs are a unique feature in the United States, and not…


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