7.6% Yield, Outperforming The Market

After getting crushed in the 2020 Covid Crash, Business Development Companies, known as BDCs, have had strong support from retail income investors looking for attractive dividend yields and exposure to privately held companies. This one just reported Q3 '21 earnings this week. Valuations, performance, and profitability vs. the BDC industry are covered in this article.

Ares Capital Corp. (ARCC) is one of the largest BDCs - it's a U.S. direct lender with a $17.1B portfolio. ARCC specializes in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.

Source: Seeking Alpha

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