subman Investment Thesis At the end of August 2023, I started building The Dividend Income Accelerator Portfolio. The portfolio has the objective to not only provide investors with the generation of annually increasing dividend income, but also with a reduced risk level. This reduced risk level is a result of the portfolio’s broad sector diversification and the inclusion of financially healthy companies with strong competitive advantages and wide economic moats. In today’s article, I will explain my rea ...

Business development companies can be a lucrative source of passive income.One of the key ingredients in a diversified investment portfolio is dividend stocks. Passive income can be helpful for investors looking to supplement any gains they might have from growth stocks. Retirees in particular can benefit from earning some extra cash that's essentially free.Business development companies (BDC) can be particularly good sources of dividend income, paying above market returns. Let's explore three BDCs that off ...

If you are looking for stocks with the highest yields, look no further! First, I would make it clear that the stocks in this list are not necessarily the ones with the “highest yields.” For example, if you screen for dividend stocks with only the yield in mind, you will find lots of stocks with triple-digit yields. The drawback is that they are all unsustainable, and you are unlikely to profit from them. If it looks too good to be true, it probably is.That is why you should always keep the payout ratio in m ...

Seiya Tabuchi Ares Capital (ARCC) and Blue Owl Capital Corporation (NYSE:OBDC) are both blue-chip business development companies (BDCs) (BIZD) with investment-grade balance sheets and attractive, well-covered dividends. ARCC, in particular, has an impressive track record, delivering market-crushing total returns since it began trading publicly earlier this decade. Meanwhile, OBDC has a shorter operating history, having gone public in 2019. Data by YCharts This article compares these two companies and provid ...

Ares Capital (ARCC) closed the most recent trading day at $20.52, moving -0.73% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.09% for the day. Meanwhile, the Dow experienced a drop of 0.1%, and the technology-dominated Nasdaq saw an increase of 0.16%. Analysts and investors alike will be keeping a close eye on the performance of Ares Capital in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.58, showcasing no movement ...

The most recent trading session ended with Ares Capital (ARCC) standing at $20.67, reflecting a +0.44% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a loss of 0.31% for the day. At the same time, the Dow added 0.67%, and the tech-heavy Nasdaq lost 1.09%.Shares of the private equity firm have depreciated by 3.61% over the course of the past month, underperforming the Finance sector's loss of 1.77% and the S&P 500's gain of 2.73%.Market participants will be c ...

FotoDuets/iStock via Getty Images Since the Fed started to increase the interest rates in 2022, the yield chasing investors have finally accessed a better option space to cherry pick assets at meaningful yields without assuming too much of a risk. Higher interest rates have imposed a downward pressure on the valuations of duration-heavy assets such as fixed income, preferred stocks and value equities, where the cash flows are relatively stable / fixed. For example, I remember that before the outbreak of ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Ares Capital (ARCC) .Ares Capital currently has an average broker ...

Sashkinw Market fear can be a trying time for some investors, but for enterprising investors, it can represent terrific buying opportunities. This is especially the case for dividend stocks that yield higher than the market average. For example, a 10% drop in price on a stock that’s already yielding results in an 8.8% yield, whereas the same percentage drop on the S&P 500 (SPY) would result in just a 13 basis point jump in yield, due to the current low 1.25% dividend yield of SPY. This brings me to the ...

aluxum While I have written a lot about high-yield investing covering many value plays, I have not elaborated so much on the portfolio construction, my investing objectives, and strategy. So, the goal of this article is to elaborate on 3 specific aspects that characterize my overall investment allocation process, where, hopefully, some of this will seem interesting and beneficial in the context of your investment approach: What are the objectives? What asset classes fulfill these objectives? What is the ke ...