Business development companies play a pivotal role in the economy, during both slowdowns and upturns. U.S. GDP has grown steadily over the last decade, and this performance is expected to continue. I collect income by helping support the economy - you can too.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
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.
If you're trying to secure a stream of passive income to support your retirement dreams, there's more than one way to make it happen. Buying rental properties is an easy-to-understand option you're probably already familiar with.
In this article, I will share with you 10 attractive high dividend yield companies that could help you enhance your portfolio's ability to generate dividend income. I will also share allocation limits for each of the selected companies to help you reduce the risk level of your dividend portfolio, better positioning it for positive investment outcomes. Each of the companies is financially strong, pays an attractive dividend yield, has dividend growth potential, and has an attractive valuation, allowing you to invest with a margin of safety.
Ares Capital (ARCC) reported earnings 30 days ago. What's next for the stock?
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.
ARCC's portfolio risk has improved, with a decline in Grade 2 risk from 3% to 2.2%, indicating better recovery prospects. No further decline in Grade 4 risk, which represents the lowest risk and reflects strong performance and positive trends. Overall, ARCC maintains a strong portfolio with limited risk of substantial non-accruals in the near term.
24/7 Wall St. Insights The lower interest rates go, the more investors will shift to ultra-high-yield stocks.
When investing for 10%+ BDC yields, investors have to pay extra attention to leverage, dividend coverage, and portfolio quality. Going into Q3, 2024 earnings season, my expectation was that we would see elevated volatility levels and falling NII results. While the actual results have been mostly positive for high-quality BDCs (and even for some speculative picks), many risks remain open.
Ares Capital improved its high balance sheet quality in Q3 and supports its dividend with NII, making it a reliable high-yield investment. The BDC's portfolio grew with $3.9B in gross commitments, showing 145% Y/Y growth. The non-accrual percentage dropped Q/Q to just 0.6% of investments (FV).
Ares Capital Corp and Blue Owl Capital Corp are both high-quality, high-yield BDCs. I compare them side-by-side in this article. I share why only one is a buy right now.