MSIF Stock: MSC Income Fund Dividend, NAV and Discount (2026)

What MSIF is, and what changed when it listed

MSC Income Fund lends mostly to private-equity-owned companies and holds equity in smaller "lower middle market" (LMM) companies alongside Main Street Capital. It was sold to individual investors as HMS Income Fund from 2012, with Hines as dealer manager. Its 10-K says it closed that offering to new investors effective September 30, 2017, and raised about $851.2 million through 2020. On October 30, 2020 the adviser changed from HMS Adviser, a Hines affiliate, to MSC Adviser I, a Main Street subsidiary, and the name changed with it. The shares began trading on the NYSE as MSIF on January 29, 2025.

Sources: Form 10-K for 2024 (repurchase program), Form 10-Q for June 30, 2026 (fees), Q1 2026 earnings release (leverage limit) and the February 4, 2025 press release (offering). The 10-K says that before the listing the fund "made quarterly offers to purchase shares at the estimated NAV per share". That window has closed: a holder who wants out now sells at whatever the market pays, which is the point of the next section. Our list of listed BDCs shows MSIF next to the other listed BDCs, and the manager's parent has its own page: Main Street Capital (MAIN).

The dividend against what MSIF earns

Sources: the quarterly earnings releases (NII, ANII, dividends declared, NAV) and the "Market value as of the end of the period" line in each Form 10-Q and the 2025 Form 10-K. ANII appears from the fourth quarter of 2025, when the fund began accruing the capital gains incentive fee. Dividends declared are the regular dividend plus the supplemental declared in the quarter.

Three readings of that table. First, the dividend declared has been $0.36 a quarter in every quarter since the fourth quarter of 2024; from the first quarter of 2025 it was $0.35 regular plus a $0.01 supplemental. Second, in its Q2 release the fund announced a change from quarterly to monthly payment beginning in July 2026, at $0.11 a month ($0.33 a quarter) for July to September, and the August 6 dividend release repeated it for October to December. Raising the supplemental to $0.03 kept the total at $0.36, but it moved $0.02 a quarter from the regular dividend to the discretionary one (our arithmetic). The August 6, 2026 release says the supplemental is paid from undistributed taxable income as of June 30, 2026, which is an accumulated balance, not a running earnings figure. Third, ANII of $0.33 matches the regular $0.33 exactly.

Sources: Q2 2026 earnings release and Form 10-Q (six-month per-share figures), and the table above. Why the gap between NII and ANII? The incentive fee on capital gains is accrued on unrealized appreciation as well as realized gains, so a quarter in which the portfolio is marked up charges NII for a fee that is not paid in cash unless the gains are realized and survive to year end. The balance sheet shows the accrual at $5.1 million on June 30, 2026 (about $0.11 a share, our arithmetic), up from $2.8 million at December 31, 2025, and the release puts the Q2 charge at $0.07 a share. Whether a holder counts it as a cost or as a timing item is a judgement; this page shows both lines. On the June 30 price of $11.57, $1.44 a year is a 12.4% run rate; on NAV of $16.51 it is 8.7% (our arithmetic). The regular dividend alone, $1.32 a year, is 11.4% of the June 30 price.

The monthly schedule for the rest of 2026

Source: Form 8-K and press release of August 6, 2026. Nothing for 2027 has been declared in the filings we read. The declaration pattern in 2025 and 2026 has been one per quarter, a few weeks before the quarter it covers, so the next one should come with the third-quarter results.

Ten years of NAV and distributions

Source: Form 10-K for 2025, financial highlights (per share amounts adjusted for the two-for-one reverse split; the company defines total return as ending NAV plus dividends divided by beginning NAV). The distribution was cut in half in 2020, from $1.40 to $0.70, and rebuilt in steps to $1.45 in 2024. It was $1.44 in 2025 and is $1.44 a year at the current $0.36 quarterly rate. In pre-split terms, the NAV was $9.02 at the end of 2011, $8.86 in 2012, $8.91 in 2013, $8.40 in 2014 and $7.88 in 2015, with distributions of $0.70 a share in each of 2013, 2014 and 2015 (our doubling gives the post-split figures: $17.82, $16.80 and $15.76 for 2013 to 2015).

What an HMS Income Fund investor paid and has received

The offering price was $10.00 a share from June 4, 2012, cut in steps to $8.50 by February 18, 2016 and raised again to $9.30 by January 19, 2017, the last price in the 10-K's schedule. Of the $10.00, the 2013 10-K says $0.70 went to selling commissions and $0.30 to the dealer manager, a 10.0% sales load (our arithmetic). The first annualized distribution rate was 7.00% of $10.00. A buyer of one $10.00 share in 2013 or 2014 owns half a share after the reverse split, so the same money is $20.00 per post-split share.

How this is built: seven years at $1.40 (2013 to 2019), then $0.70, $1.05, $1.29, $1.40, $1.45 and $1.44 for 2020 to 2025, which adds to $17.13. It assumes the shares were bought at the start of 2013, ignores 2026 payments, taxes and any reinvestment, and does not compute an annual rate. The point is the shape: most of the return has been paid out, and the capital that the $10.00 started with has been worth 79% of the price paid at NAV and 66% at the $13.14 market close of December 31, 2025 (our arithmetic). A buyer in the January 2025 offering at $15.53 stands differently: NAV is 6.3% above that price and the market price on June 30, 2026 was 25.5% below it (our arithmetic).

Credit: non-accruals and the portfolio

Sources: the quarterly earnings releases and the Form 10-Q for June 30, 2026. In dollars, non-accruals were $13.7 million at fair value and $49.0 million at cost on December 31, 2025, and $26.7 million and $76.3 million on June 30, 2026: cost up 56% and fair value up 95% (our arithmetic). Fair value is now 35% of cost, from 28% (our arithmetic). The $76.3 million is 10.2% of net assets of $748.8 million (our arithmetic). One inconsistency to know: the 2025 Form 10-K gives the December 31, 2025 figure as 1.0% and 3.9% in the notes, and also carries a sentence saying 1.4% and 4.6%, which are the September 30 numbers. We use the notes, which match the company's January 20, 2026 pre-release.

Source: Q2 2026 earnings release. The private loan book is marked at 99.1% of cost and the LMM book, where the fund owns equity in every company, at 126.7% (our arithmetic); the release says LMM equity was valued at 202% of its cost. That is why NAV can rise while non-accruals rise: the markup sits in the LMM equity, and Q2 included an $11.6 million realized gain on one LMM exit and a $1.9 million realized loss on a private loan restructuring. The fund's total investments were $1,389.4 million at fair value on June 30, 2026, 106% of the $1,307.8 million of cost. The weighted-average yield on private loan debt including non-accruals fell from 10.3% to 9.7% between December 31, 2025 and June 30, 2026.

The October 8, 2026 8-K says the private loan portfolio was about $849.6 million at cost across 81 companies on September 30, 2026, with 90.1% in first-lien senior secured debt and 9.9% in equity investments or other securities. During the third quarter the fund originated $62.2 million of commitments and funded $61.4 million. The June release used different wording (debt as a share of cost, with first-lien shares inside it), so we do not compare the 9.9% with June's 7.1% equity share. NAV, non-accruals and dividends for September 30 come with the Form 10-Q.

Debt: the October 30, 2026 maturity

Sources: Form 10-Q for June 30, 2026 (Note D), the August 31 and September 1, 2026 Form 8-K and press release. The company says it will use the proceeds "to repay the $150.0 million of outstanding 4.04% Series A Senior Notes due 2026 on or before their maturity on October 30, 2026". Interest on the new notes is due each March 31 and September 30 from March 31, 2027. The second $75.0 million was due "in October 2026"; the filings we read (the latest is an October 8 8-K) do not yet show it, so we cannot say it has closed.

The arithmetic: $150.0 million times the 2.79-point difference between 6.83% and 4.04% is $4.2 million a year, or $0.092 a share on 45,345,229 shares and about $0.023 a quarter. Against Q2 ANII of $0.33 that is 7% a quarter (our arithmetic). It is a full-year effect only once all $150.0 million is replaced, and until then the interim cost is the credit facilities' 5.7% to 5.9%. Leverage has room: the regulatory minimum asset coverage fell from 200% to 150% on January 29, 2026, and debt was 0.88 times net assets at June 30, 2026 (0.82 at December 31, 2025, 0.72 at September 30, 2025). Liquidity was $210.5 million. The rating the company cites is BBB- (stable) from Kroll Bond Rating Agency.

Other items a holder should know

• Selling shares below NAV. At the August 5, 2026 annual meeting, holders voted 18,884,942 for, 4,672,697 against and 1,348,625 abstaining on a proposal to let the fund sell shares below NAV during the next 12 months, "subject to certain limitations described in the definitive proxy statement". With the price 29.9% under NAV at June 30, any such sale would be dilutive to NAV per share. The 8-K does not say one is planned.
• Buybacks. The fund repurchased 1,243,379 shares ($16.0 million) in Q1 2026, which the release says added about $0.08 a share to NAV. A new $20.0 million plan runs September 2026 to February 2027, and Main Street authorized up to $20.0 million of open-market purchases of MSIF shares in the same window.
• CEO change. The 8-K of June 30, 2026 says Nicholas T. Meserve is expected to become CEO in the fourth quarter of 2026, with Dwayne L. Hyzak moving to Executive Chairman.
• Holders. There were 12,963 holders of record on February 25, 2026, not counting shares held in street name. Shares outstanding were 45,345,229 on June 30, 2026, a market value of about $524.6 million at the $11.57 close (our arithmetic).
• Tax on 2025 dividends. The company said about 81% was ordinary income, 18% qualified dividends and 1% long-term capital gains; the breakdown has no return-of-capital line. See our notes on return of capital in REIT and BDC payouts.

What a reader can do with this

This is not advice to hold or sell. These are the checks the filings support.

• Compare the dividend with ANII and with NII, not with the yield on a screen. The regular $0.33 is covered by ANII in Q2; the $0.36 is not covered by NII. The next two data points are the third-quarter NII and the first dividend declared for 2027.
• Watch non-accrual cost and the LMM marks together. NAV of $16.51 includes LMM equity valued at 202% of its cost, and non-accruals at cost have risen two quarters in a row.
• Know your own basis before you decide. A holder from the HMS Income Fund years has a basis near $10.00 per old share (about $20.00 per post-split share) and a market price under it, so a sale at a price under that basis is a capital loss reported on Form 8949. Our pages on the wash-sale rule for BDC and REIT shares and Form 8949 and Schedule D for these sales cover the mechanics. For the discount itself, see how non-traded REITs behave when they list and how CION, another former non-traded BDC, trades.
• Check a live quote. Every price here is a quarter-end close from a filing. We have no price for October 22, 2026.

To be emailed when MSC Income Fund files its next report, use the row below.

This is analysis of public documents, not investment, legal or tax advice.

Frequently asked questions

Sources: MSC Income Fund, Inc. (CIK 1535778), formerly HMS Income Fund, Inc.: Form 10-K for 2025 (accession 0001535778-26-000026), for 2024 (0001535778-25-000073), for 2020 (0001047469-21-000783), for 2017 (0001535778-18-000010), for 2015 (0001535778-16-000212) and for 2013 (0001535778-14-000018); Form 10-Q for June 30, 2026 (0001535778-26-000085), March 31, 2026 (0001535778-26-000048), September 30, 2025 (0001535778-25-000148), June 30, 2025 (0001535778-25-000126) and March 31, 2025 (0001535778-25-000088); Form 8-K earnings releases of March 19, May 12, August 13 and November 13, 2025 and February 26, May 7 and August 6, 2026 (0001535778-25-000069, -000084, -000122, -000145; 0001535778-26-000022, -000043, -000081); Form 8-Ks of January 20, March 12, June 30, August 5, August 6, September 1 and October 8, 2026 (0001535778-26-000012, -000033, -000072, -000077, -000079, -000092, -000096) and of February 4, 2025 (0001535778-25-000053). Primary texts are saved with the dataset. Calculations marked as our arithmetic use the displayed source inputs.