Loading news...
Global instability is rising fast, but one income strategy may be built for exactly this kind of environment. These overlooked income machines combine bond-like stability with built-in growth most investors underestimate. If you're worried about inflation, AI disruption, and market turmoil, this may be the most dependable place left to hide.
Ares Capital (ARCC) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
The BDC sector faces heightened volatility in 2026 due to AI-driven software disruption and anticipated rate cuts. So far, multiple BDCs have reduced their leading dividends, with more likely in 2026. Ares Capital and Blackstone Secured Lending trade below NAV, offering yields of 10.3% and 12.9%, respectively, but near-term caution is warranted due to their 20%+ software exposure. Despite attractive yields, I recommend waiting until the back half of 2026 for better clarity on rates and software exposure before aggressive buying.
Double-digit yields look irresistible… but there are hidden risks few income investors truly understand. Business Development Company dividends are about to change – here's what everyone is missing.
March's Large Cap Value (GASV) screen highlights 14 fair-priced, 'safer' dividend stocks, including Hafnia Ltd, IRSA Inversiones, and Weibo Corp, as actionable buys. Top ten GASV stocks are projected to deliver an average 33.21% net gain by March 2027, with risk/volatility slightly below the market average. Analyst targets indicate the five lowest-priced, highest-yield GASV stocks could outperform, with Hafnia Ltd showing a potential 42.88% gain.
First, it was "First Brands" risk; now it's "AI software" risk. Market narratives shift monthly, but the cash keeps flowing. Ares Capital quality: Non-accruals remain low at 1.2% of fair value, and the stock is trading below its $19.94 NAV – a level where we are enthusiastic buyers. Blue Owl sold a loan slice to private institutions at 99.7% of par, proving the public market's discount is completely unjustified.
Market sentiment appears overly defensive in certain areas, suggesting potential mispricing in risk assets. The analysis highlights top-tier BDCs, focusing on dividend yields, price/NAV, leverage, and credit quality. Main Street Capital (MAIN), Capital Southwest (CSWC), and Ares Capital (ARCC) offer strong yields with varying risk profiles.
An overlooked opportunity is quietly delivering high current income and inflation-beating growth. I share an 8%+ yielding income machine with surprisingly strong growth. While other high-yield opportunities are wobbling in the current environment, this one may be built to endure.
Investors love dividend stocks because they provide dependable passive income streams and an excellent opportunity for solid total return.
These 10%+ yields look risky at first glance—but the numbers tell a very different story. Conservative balance sheets, strong coverage, and market mispricing are colliding. The recent sell-off may have quietly created one of the best income setups of the year.
Kayne Anderson BDC and Trinity Capital offer 11%+ yields with minimal SaaS exposure, making them attractive amid sector-wide SaaS-driven BDC selloffs. KBDC's SaaS portfolio exposure is under 3%, and TRIN's is 10.3%, both well below sector averages, limiting their risk from SaaS credit events. Both BDCs demonstrate superior credit quality, with non-accruals at 1.4% (KBDC) and 1% (TRIN), and PIK income far below sector averages.
System-wide BDC dividend cuts are highly likely as base dividend coverage averages 99% and growth is constrained. As a result, many BDC investors have decided to sit on the sidelines until the expected dividend cuts materialize. The idea is that a cut will lead to a negative share price reaction and thus provide a better opportunity to buy at a bargain price.
There are multiple risks for your BDC investments now and three that specifically create risk for certain BDCs. Business development companies offer high yields but carry significant, often misunderstood risks, especially in falling interest rate environments. Volatile interest rates can damage BDC profitability and distributable income, causing dividend cuts and share price declines.
This Major Market Rotation Just Handed Dividend Investors A Huge Gift
AGNC Investment has maintained its big-time monthly dividend for more than five consecutive years. Ares Capital has delivered a stable or increasing dividend for more than 16 years.
A $400,000 portfolio can generate $3,200 a month, but only if you're willing to hold assets that most retirement guides skip entirely.
A $1 trillion wipeout just rocked software stocks. However, the real opportunity may be hiding in plain sight. While everyone debates AI disruption, a deeply undervalued, high-quality, well-covered 11%+ yielding opportunity to profit from the SaaS carnage has just emerged.
Ares Capital pays an ultra-high dividend yield of 10.1%. Enbridge has increased its dividend for 31 consecutive years.
Zacks.com users have recently been watching Ares Capital (ARCC) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Financial stocks are extremely oversold, with the XLF, the financial sector ETF, down 5.70% year-to date.