This 9.1%-Yielding Top-Shelf BDC Just Raised Its Dividend

This company recently reported Q2-2018 results. The BDC raised its dividend from $0.38/share to $0.39/share, reflecting an increase of 2.6 percent. It still has considerable interest rate upside. Shares are affordable, selling for about net asset value. An investment in the stock yields 9.1 percent.

Ares Capital Corp. (ARCC), one of the largest BDCs in the country, reported solid second quarter results yesterday and raised its quarterly dividend payout. Ares Capital Corp. reported stable net investment income and continued to cover its dividend payout. The business development company also has positive interest rate sensitivity, which could translate into NII growth in a rising rate environment. Shares sell for about net asset value now, but the risk-reward is still attractive. An investment in ARCC yields 9.1 percent.

Source: Seeking Alpha

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