Build the stable Income Tree with fixed income (8.5% yield) as the base. Decorate the portfolio with high-yielding opportunistic buys. Diversify with 42+ holdings, so one failure is barely noticeable.
Ares Capital (ARCC) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Ares Capital offers a nearly 10% yield, trades below book value, and maintains strong dividend coverage with spillover income reserves. ARCC's portfolio is anchored in first-lien senior secured loans, supporting stable interest income and reducing the risk of a dividend cut. Despite sector-wide fears of rate cuts and lower net investment income, ARCC's spillover reserve covers about 66% of annual dividends, providing a safety cushion.
Ares Capital (ARCC) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Dividend stocks offer a steady income stream to investors, enabling them to generate passive income. Historically, companies that pay and consistently grow their dividends have outperformed those that do not.
Ares Capital (ARCC) and Blue Owl Capital (OBDC) are top BDCs offering double-digit dividend yields and strong portfolio diversification. OBDC stands out with a higher forward yield (~13.3%), superior industry diversification, and a deeper discount to book value than ARCC. Both ARCC and OBDC maintain robust dividend safety, with high percentages of senior secured loans and consistent payout histories.
The stock market is experiencing historically high valuations, as measured by the Shiller price-to-earnings ratio and Buffett indicator. EQT Corporation and Expand Energy are positioned to benefit from the increasing demand for natural gas as a cleaner energy source.
The "Total Portfolio Approach" is reshaping investing. It rewards active skill over passive indexing, a philosophy I fully embrace for my own income-focused strategy. This method demands high-conviction picks. Sustainable retirements depend on getting these decisions right, with little room for error in building a reliable income stream. That's why I've identified five elite income stocks. They represent the gold standard, chosen for their exceptional quality and dependable dividends to secure my financial future.
Zacks.com users have recently been watching Ares Capital (ARCC) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Ares Capital, Hercules Capital and Runway Growth Finance have been highlighted in this Industry Outlook article.
Ares Capital, Hercules and Runway Growth Finance have been highlighted in this Industry Outlook article.
Declining interest rates will weigh on loan yields, while demand for personalized financing is expected to rise. The Zacks SBIC & Commercial Finance industry players like ARCC, MAIN and RWAY are worth a look.