Ares Capital offers 10% yield with stable portfolio and trades near fair value, rated Buy for income investors.

Ares Capital, the largest investment-grade business development company (BDC) in the U.S., offers a 10% dividend yield supported by $1.38 per share spillover income. Its portfolio is diversified and high-quality, with minimal risk from AI disruption and only one non-accrual in the software sector. Trading at a slight discount to net asset value (NAV) and near fair value, it presents an attractive option for income-focused investors. The analyst rates it as a Buy, recommending a stronger buy if the price falls to 0.88–0.90 times NAV for added safety.