Is Ares Capital Corporation Stock a Buy Now?
This high-yield BDC still looks like a reliable investment.
Ares Capital (NASDAQ: ARCC), the world's largest business development company (BDC), has been a dependable income investment for long-term investors. If you had invested $10,000 in its IPO on Oct. 5, 2004 and continuously reinvested your dividends, your investment would be worth $122,000 today and paying out nearly $10,700 in annual dividends.
Ares still pays a hefty forward yield of 8.8%, which is nearly double the 10-Year Treasury's 4.5% yield. So should you buy it as a stable dividend play in this unstable macro environment?
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