Top High-Yield Stocks: Ares Capital and More
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy ARCC?
Source: Fool
- Ares Capital Stability: Ares Capital currently boasts a 9.5% dividend yield, and as a registered investment company, it must distribute at least 90% of its taxable income, ensuring its stability and attractiveness in middle-market financing.
- Starwood Property Trust Success: Leading with a 10.7% dividend yield, Starwood Property Trust has maintained its dividend without cuts for over a decade, successfully diversifying its portfolio to enhance its competitive edge in the real estate market.
- Western Midstream Partners Growth Potential: With a distribution yield of 9%, Western Midstream Partners has rebounded its payout to pre-pandemic levels after a reset during the pandemic, and it plans to further increase distributions through acquisitions and infrastructure investments.
- Attracting Passive Income Investors: Ares Capital, Starwood Property Trust, and Western Midstream Partners all offer yields up to 10.7%, appealing to investors seeking stable passive income and demonstrating strong future distribution potential.
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Analyst Views on ARCC
Wall Street analysts forecast ARCC stock price to rise
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 18.690
Low
20.00
Averages
21.75
High
23.00
Current: 18.690
Low
20.00
Averages
21.75
High
23.00
About ARCC
Ares Capital Corporation is a specialty finance company focused on providing direct loans and other investments in private middle market companies in the United States. The Company invests primarily in first lien senior secured loans (including unitranche loans, which are loans that combine both senior and subordinated debt, generally in a first lien position), and second lien senior secured loans. In addition to senior secured loans, it also invests in subordinated debt, which in some cases includes an equity component, and preferred equity. It also may invest up to 30% of its portfolio in non-qualifying assets. Its investment activities are focused on industries, such as software and services, health care services, commercial and professional services, financial services, commercial and professional services, insurance services, energy, food and beverage and others. The Company is externally managed by Ares Capital Management LLC (investment adviser).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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