Realty Income, W.P. Carey, and Ares Capital Offer Yields Up to 9.1%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 55m ago
0mins
Source: Fool
- Realty Income Advantage: Realty Income, the largest net lease REIT with over 15,500 properties and a market cap of $56 billion, leverages its scale for lower capital costs, making it ideal for conservative dividend investors.
- W.P. Carey Restructuring: After cutting its dividend in 2023, W.P. Carey has increased it every quarter, indicating a strategic reset post-exit from the troubled office sector, with new investments in industrial and retail assets expected to enhance growth potential.
- Ares Capital High Yield: Ares Capital boasts a 9.1% dividend yield, and as a large business development company, its average loan yield of 10.6% sufficiently covers its hefty dividends, despite facing increased loan risks during economic downturns.
- Diverse Investment Options: These three stocks offer distinct characteristics, with Realty Income providing stable dividends, W.P. Carey showing growth potential, and Ares Capital appealing to risk-tolerant investors, allowing investors to choose based on their risk preferences.
Analyst Views on ARCC
Wall Street analysts forecast ARCC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARCC is 22.50 USD with a low forecast of 21.00 USD and a high forecast of 24.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 20.900
Low
21.00
Averages
22.50
High
24.00
Current: 20.900
Low
21.00
Averages
22.50
High
24.00
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.
