Investing $1 million in the S&P 500 yields $12,100 annually. This may necessitate principal withdrawals for higher living expenses, which is risky in volatile markets like the current one. Morgan Stanley Direct Lending offers a 10% dividend yield, focusing on non-cyclical industries with a well-diversified, primarily first-lien loan portfolio and low leverage. Broadstone Net Lease provides a 6.9% yield with a diversified property portfolio, long lease terms, stable AFFO growth, and a strong balance sheet.
Investors love dividend stocks because they provide dependable passive income streams and an excellent opportunity for solid total return.
Despite my preference for individual stocks, I've added Schwab's U.S. Large-Cap Growth ETF to address my portfolio's lack of tech sector exposure. With inflation creeping up and potential tariffs on the horizon, investors might consider dividend-focused stocks as safe-havens in a high inflation environment. The Putnam BDC Income ETF offers a near 9% yield and includes high-quality BDCs like Ares Capital, Blackstone Secured Lending, and Main Street Capital.
Recently, Zacks.com users have been paying close attention to Ares Capital (ARCC). This makes it worthwhile to examine what the stock has in store.
I discuss 2 popular high-yield stocks that look overvalued—avoid them before it's too late. I also discuss why 2 underrated stocks are better buys today. Smart investors are shifting from overhyped dividend stocks to these hidden gems—here's why you should too.
Want to retire early? These 5 investments yield 12%+ and could accelerate your timeline. Diversify your income and secure financial freedom. Here's how to boost your retirement income without taking on excessive risk.
Since BDCs carry in general above-average risks, it makes sense to prioritize defensive and prudently structured picks. Yet, if the price is right, higher risk BDCs could also become enticing investments. In this article, I discuss two tactical or higher risk BDCs - one of which is a buy, and the other one, in my view, should be avoided.
ARCC's attractive dividend yield of 8.25% is impressive. Is the stock worth betting on to earn this dividend yield?
Enbridge benefits from toll road-like cash flows, long-term contracts, steady distributable cash flow growth, and a reliable dividend, supported by a BBB+ credit rating. Ares Capital leverages its scale and industry expertise, generating strong returns through a well-diversified portfolio of senior loans and benefiting from rising M&A activity. Both companies maintain strong balance sheets with investment-grade credit ratings and conservative payout ratios, providing high-quality resilient cash flow in a volatile market.
TipRanks' analyst ranking service highlights three dividend-paying stocks, including McDonald's and Ares Capital.
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Ares Capital achieved its highest portfolio value in Q4'24, driven by strong net investment income and robust demand for new net originations. Despite a slight increase in the non-accrual percentage, Ares Capital maintained excellent balance sheet quality and delivered a well-supported dividend with a 1.15X coverage ratio. The BDC trades at a price-to-NAV ratio of 1.18X, making shares slightly overvalued, in my opinion.