Ares Capital offers a 10.2% yield, far exceeding the S&P 500’s record-low 1% average, amid strong earnings coverage.
Ares Capital (NASDAQ: ARCC) is delivering a 10.2% dividend yield, sharply higher than the S&P 500’s record-low 1% average. The business development company distributes 90% of taxable income to comply with IRS rules, supporting its elevated payout.
The company reported $0.47 per share in core earnings for Q1, plus $0.15 in net realized gains, covering its $0.48 quarterly dividend. Ares also holds $1.38 per share in excess taxable income carried forward from 2025, providing a buffer for future distributions.
Despite its higher-risk profile, Ares has maintained or grown its dividend for over 16 years, backed by a stable interest rate environment and strong financials.