Ares Capital Stock: Our Top Pick For The Rising Interest Rate Environment

May 12, 2022 9:00 AM ETAres Capital (ARCC)71 Comments

Summary

  • Ares Capital remains an attractive investment grade BDC.
  • After the latest pullback, ARCC shares look attractively priced near NAV and boast an 8.4% dividend yield.
  • We discuss why ARCC is positioned to benefit from rising interest rates.
  • Looking for a portfolio of ideas like this one? Members of High Yield Investor get exclusive access to our model portfolio. Learn More »

Wooden blocks with percentage sign and arrow up, financial growth, interest rate and mortgage rate increase, inflation concept

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Ares Capital Corp. (NASDAQ:ARCC) is one of the preeminent blue chip BDCs with an investment grade balance sheet and an attractive 8.4% dividend yield. The company has crushed the S&P 500 (SPY) over

ARCC stock Chart
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Ares Capital stock price
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This article was written by

Samuel Smith profile picture
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Become a “High Yield Investor” with our 8% Yielding Portfolio.

Samuel Smith is Vice President at Leonberg Capital and manages the High Yield Investor Seeking Alpha Marketplace Service.


Samuel is a Professional Engineer and Project Management Professional by training and holds a B.S. in Civil Engineering and Mathematics from the United States Military Academy at West Point. He is a former Army officer, land development project engineer, and lead investment analyst at Sure Dividend.

Disclosure: I/we have a beneficial long position in the shares of ARCC, OCSL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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