Remove Business Development Companies Remove Capital Remove Taxes
article thumbnail

Is Ares Capital Stock a Buy?

The Motley Fool

One such stock that has been attracting a lot of attention is Ares Capital (NASDAQ: ARCC) , which at its current share price yields a massive 8.9%. Why does Ares Capital pay such a high dividend? It invests between $30 million and $500 million in debt and equity in each company. Should you invest in it today?

Capital 130
article thumbnail

My 3 Favorite Ultra-High-Yield Dividend Stocks to Buy in November

The Motley Fool

Ares Capital Ultra-high is certainly the right description for Ares Capital 's (NASDAQ: ARCC) forward dividend yield of 8.86%. Delivering great total returns is something Ares Capital has consistently done, by the way. Ares Capital ranks as the largest publicly traded business development company (BDC).

Capital 237
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

Better High-Yield Buy: Hercules Capital or PennantPark?

The Motley Fool

One type of business that income-focused investors might have come across is the business development company (BDC) , which invests in the debt and equity of middle-market companies. Should you invest $1,000 in Hercules Capital right now? About 96% of its debt portfolio is floating rate.

Capital 130
article thumbnail

2 Ultra-High-Yield Dividend Stocks to Buy Now for a Lifetime of Passive Income

The Motley Fool

The average dividend payer in the S&P 500 index might be unappealing, but there are underappreciated businesses with ultra high dividend yields waiting for income-seeking investors to scoop them up. Ares Capital (NASDAQ: ARCC) , and EPR Properties (NYSE: EPR) offer yields above 8% at recent prices. At recent prices, it offers an 8.9%

Legal 238
article thumbnail

2 Unstoppable Dividend Stocks Yielding More Than 9% That Income-Seeking Investors Will Want to Buy in October and Hold Forever

The Motley Fool

Right now, Ares Capital (NASDAQ: ARCC) and PennantPark Floating Rate Capital (NYSE: PFLT) offer yields above 9%, and there's a pretty good chance that they'll be able to maintain their payouts over the long term. Ares Capital Ares Capital is the world's largest publicly traded business development company ( BDC ).

Investors 245
article thumbnail

Here's How Ares Capital Can Afford Its 10% Dividend Yield

The Motley Fool

A yield trap can come about for a few reasons, including a burdensome debt load, a declining business, or an elevated dividend payout ratio. Sporting a whopping 10% dividend yield, investors may initially think that the business development company ( BDC ) Ares Capital (NASDAQ: ARCC) is a yield trap.

Capital 130
article thumbnail

Want $1,000 in Annual Dividend Income? Invest $9,550 in These 2 Ultra-High-Yield Stocks

The Motley Fool

Ares Capital (NASDAQ: ARCC) and PennantPark Floating Rate Capital (NYSE: PFLT) offer an average yield of 10.5% Ares Capital Ares Capital is a business development company ( BDC ), which means it can legally avoid paying income taxes by distributing nearly all its profit to shareholders as a dividend.

Investing 246