# 2 BDC Stocks That Outperform Regular Dividends

> Main Street Capital and Hercules Capital offer high dividend coverage despite economic risks.
- Title: 2 BDC Stocks That Outperform Regular Dividends | Shortify
- Summary: Main Street Capital and Hercules Capital offer high dividend coverage despite economic risks. Main Street Capital covers its regular dividend 130% while…
- Keywords: main street capital, hercules capital, bdc stocks, dividend coverage, supplemental dividends, economic downturns, finance, money, BDC, Stocks, Outperform, Regular
- Source: The Motley Fool — https://fool.com/investing/2026/10/21/2-bdc-stocks-to-buy-and-hold-that-earn-more-than-t
- Author: Reuben Gregg Brewer
- Published: 2026-10-21T22:15:00+00:00
- Read time: 1 min
- Topics: main street capital, hercules capital, bdc stocks, dividend coverage, supplemental dividends, economic downturns, finance, money
## BDCs' High Yield and Risk
BDCs offer high yields but carry significant risks due to volatile investment income.
## Main Street Capital's Dividend
Main Street Capital pays $0.795 quarterly dividend with $1.04 distributable income in Q2 2026, 130% coverage.
## Hercules Capital's Dividend
Hercules Capital pays $0.40 quarterly dividend with $0.50 net investment income in Q2 2026, 125% coverage.
## Supplemental Dividends Explained
Supplemental dividends are extra payments when BDCs perform well, not a permanent income stream.
## Dividend Coverage Comparison
Main Street covers regular dividend 130% while Hercules covers it 125% with both having room for economic adversity.
## Risk During Recessions
Supplemental dividends may be cut during recessions but regular dividends remain protected by high coverage.
## Key takeaway

Main Street Capital covers its regular dividend 130% while Hercules Capital covers it 125% with supplemental dividends that may cut during recessions.