Why I Just Loaded Up on This 9.2%-Yielding Dividend Stock

Core Viewpoint - Ares Capital (NASDAQ: ARCC) is a leading business development company (BDC) that has been a strong investment choice due to its high and sustainable dividend yield and solid long-term growth prospects [1]. Dividend Yield - Ares Capital offers a high dividend yield of 9.2%, which is a significant factor in attracting investors [3]. - The company has maintained or grown its dividend for 65 consecutive quarters, equating to over 16 years of consistent performance [3]. - Ares Capital has generated core earnings that exceed its dividend payout for 20 consecutive quarters, providing a cushion for potential earnings dips [4]. Total Returns - Ares Capital has delivered cumulative returns that are 40% higher than the S&P 500 and three times higher than the S&P BDC Index since its IPO in 2004 [5]. Long-term Prospects - The company is well-positioned in the direct lending market, which is increasingly favored by middle-market businesses for its efficiency in closing financing transactions [6]. - Ares Capital estimates its total addressable market at $5.4 trillion, with $3 trillion in the traditional middle market and an additional $2.4 trillion opportunity for larger companies [7]. - The company’s industry relationships, access to capital, and underwriting expertise are viewed as significant competitive advantages, enabling solid growth without needing to capture a large market share [9].