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.
In April, net investment activity dropped to a multi-year low due to rising stock valuations and weakness in the Business Development Company (BDC) sector, which also faced multiple dividend cuts. Despite these challenges, selective investments in Ar...
Ares Capital is experiencing a tough environment with reduced merger and acquisition activity and rising funding costs due to higher interest rates. The company's net asset value recently dropped by 1.8%, reflecting broader private credit market pres...
The VanEck BDC Income ETF (BIZD) is rated a Buy due to its balanced exposure to Business Development Companies (BDCs) with lower risk from venture and software lending. Its portfolio focuses on large, diversified lenders like ARCC, OBDC, and MAIN, wh...
In Q1 2026, Ares Management significantly increased its holdings in various Business Development Companies (BDCs) and direct lending assets, buying at prices now lower than their purchase cost. This move reflects Ares' strong conviction in the value ...
A $1 million portfolio in high-yield dividend stocks generating $60,000 income faces a $14,400 annual tax bill at the 24% federal bracket if held in a taxable account. Placing these stocks in a Roth IRA avoids this tax, allowing the full income to gr...
