Ares Capital's dividend yield of just over 10% means a $5,000 investment could generate a little more than $500 a year in passive income, assuming the business development company maintains its current payout. The BDC reported first-quarter core earnings of $0.47 per share, down from $0.50 in the prior quarter and year-ago period, falling short of its $0.48 quarterly dividend. However, realized gains of $0.15 per share and a spillover income cushion of $1.38 per share from prior excess earnings provide ample coverage. Management also cited modest leverage, a stabilizing interest rate environment, and credit performance in line with historical trends as factors supporting continued dividend stability and growth.
Ares Capital CorporationArticle discusses Ares Capital's dividend yield and coverage, supporting income stability.
NVIDIA Corporation