Ares Capital and Verizon offer high yields and strong fundamentals amid inflation and rate hike concerns.

Ares Capital (ARCC) and Verizon Communications (VZ) stand out as attractive income investments amid rising inflation and potential interest rate hikes. ARCC offers a 10% yield, benefits from floating-rate loans, and trades at a slight discount to its net asset value, supported by strong dividend coverage. Verizon yields 5.88%, showing growth under new leadership, has raised its guidance, and started its first share buyback in a decade. Both companies provide opportunities for investors seeking inflation-beating dividends and potential price gains.