Ares Capital remains a buy with a strong 10.13% yield and solid profit coverage despite some unrealized losses.

Ares Capital (ARCC) is recommended as a buy due to its reliable 10.13% dividend yield and disciplined distribution coverage. Since 2022, ARCC's cumulative profits and realized gains have exceeded its distributions by $1.05 billion, showing strong financial health. Although the company faces $440 million in unrealized losses, its net asset value (NAV) per share has grown over recent years, and shares currently trade at a discount to NAV. Higher interest rates could improve ARCC's profitability further, though short-term analyst forecasts indicate modest profit challenges ahead.