2Mês·

Everyone's talking about NVIDIA. I'm looking at a stock that pays me a dividend of about 10%.

Unpopular.

Boring.

Hardly ever in the headlines.

And that’s exactly why I think Ares Capital ($ARCC (+0,3%)
) so exciting.

Most stocks with a 10% dividend yield have a problem.

Ares Capital, on the other hand, has been delivering for years:

• About 607 investments or credit exposures

• A portfolio of approximately $29.5 billion

• A stable or rising regular dividend for many years

• Investment-grade rating

• Billions in available liquidity for new investments. (arcc.ares.com⁠)

And now comes the part that hardly anyone talks about.

The market for private credit has been growing rapidly for years. More and more companies are securing financing outside of traditional banks. This is precisely where Ares Capital ranks among the largest and most established providers. If this trend continues, it could give the company a long-term boost. (ares.com⁠)

Of course, there are risks. Rising loan defaults or a weaker economy could weigh on earnings.

But that’s exactly why I’m asking myself this question:

What if the market is currently underestimating one of the strongest cash flow generators of the coming years?

I keep an eye on many dividend stocks.

To me, Ares Capital is currently one of the most exciting ones.

Now it’s your turn:

Would you rather own a stock with a 10% dividend yield—or a growth stock that pays no dividends at all today?

#Dividenden
#DividendenAktien
#PassiveIncome
#Cashflow
#AresCapital
#ARCC
#PrivateCredit
#IncomeInvesting
#ValueInvesting
#LangfristigInvestieren
#FinanzielleFreiheit

11 Comentários

A@xxx

2Mês

Has also seen a 17% drop in its share price since July 25…

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GHF@GHF

2Mês

@nitroxx I'm not exactly an Ares fan, but many of the stocks that have been hyped here on the forum have lost more than 17% of their value in a year… Not including dividends, mind you 😉

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Solitair@Solitair

2Mês

@GHF Unlike those, however, with Ares, you don't have to wait for a new cancer drug, a breakthrough in quantum computing, or anything else along those lines.

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Smudo@Smudeo

2Mês

I’ve been buying at 16 euros since 2021. That means a 10% annual return, so I’m up 50% on my investment.
It was nice when they were at 22 (I see they’re back there again).
For me, this investment is an alternative to overnight deposits, fixed-term deposits, and bonds.
I’m invested and will stay that way.

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Musikerie@Musikerie

2Mês

Pitting dividends against growth is and always will be a naive calculation. Only the return matters. Dividends are compensation. Before I invest in something like that, I’d rather open a pawnshop or lend money myself at usurious interest rates to people who can’t get loans anywhere else.

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Basti92@BavarianLion

2Mês

When it comes to BDCs, you really need to look at what percentage of their loans is tied up in the software sector right now! That’s putting massive downward pressure on the stock price! Of course, if the software sector recovers, the stock price will rise again here as well!

I myself am invested in $HTGC and $MAIN!

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Solitair@Solitair

2Mês

Just checked: I’ve been invested since early 2024 and have been buying more from time to time. According to Get Quinn, I’m currently at plus or minus zero thanks to the dividends. A growth stock might have been a better choice after all. Dividends aren’t being increased either. But at least the stock is working for me from now on—as long as the price doesn’t drop any further.
I still have Main from that sector. Things are looking better there.

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