This 9.1%-Yielding BDC Remains A Core Holding For High-Yield Investors

This comnpanyu is a high-quality income vehicle for dividend investors. It recently raised its dividend payout. The BDC about covers its dividend with net investment income. Shares are sensibly valued. An investment in the stock comes with a dividend yield of 9.1 percent.

Ares Capital Corp. (ARCC) reported strong earnings for its third quarter on October 31, which caused its stock to pop by more than 5 percent. The business development company about covers its dividend payout with net investment income, and has net interest income upside during the current rate hiking cycle. I see Ares Capital Corp. as a high-quality core holding in a high-yield income portfolio. Shares are moderately valued, and throw off a dividend yield of 9.1 percent.

Source: Seeking Alpha

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