Ares Capital remains a top business development company (BDC) pick, delivering a durable 9.6% dividend yield supported by strong credit underwriting and stable earnings. In Q2 2026, the company showed resilient credit metrics, increased deal flow, and enhanced funding flexibility with $6 billion in liquidity and a new commercial paper program. Its dividend coverage is robust, backed by net investment income, core earnings, and reserves, supporting a consistent $0.48 quarterly payout with 60 consecutive stable or rising payments. Trading at a premium to net asset value and forward earnings, Ares Capital's scale, quality, and reliable cash returns make it attractive compared to risk-free alternatives.
