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Is Ares Capital Stock a Buy Now?

The Motley Fool Logo The Motley Fool By Reuben Gregg Brewer
Is Ares Capital Stock a Buy Now?

Ares Capital, a business development company, offers high-yield dividends but faces potential risks during economic downturns due to lending to smaller, higher-risk businesses. Its dividend is volatile and may not be reliable for consistent income investors.

Insights
ARCC   neutral

Well-run BDC with high dividend yield (9.6%), but dividend volatility and potential performance risks during economic downturns make it a cautious investment. High loan interest rates (10.9%) suggest lending to riskier businesses.