WL1 ARCC

Ares Capital: Big Dividend, 3 Big Risks

Ares Capital (ARCC) is an attractive big-dividend (9.9%) Business Development Company (BDC) trading at a discounted price. And despite the risks, such as heightened short-interest, an increasingly hawkish fed, and management conflicts of interest, we believe Ares is an attractive long-term investment for income-focused investors because of its big dividend, recently discounted price, and attractive fundamentals.