2025-12-01 14:55:57

Just added ARCC (Ares Capital) to my portfolio for some steady passive income — 9.8% yield is no joke. Here's what caught my attention:

It's a BDC that lends directly to private companies, not some risky garbage. The portfolio is spread across 587 companies with zero average losses since inception (compared to banks' 0.6% and other BDCs' 1.1%). That's actually impressive.

The dividend story is solid — 16 years of stable payouts, up 26% over the past decade. Q3 earnings of $0.50/share covered the $0.48 dividend with room to spare. Balance sheet is clean too (1.0x leverage ratio vs. 1.25x target), so they've got cushion to weather rate cuts.

Obviously high yield = higher risk, but ARCC's track record suggests this isn't a dividend cut waiting to happen. For anyone building a passive income ladder, worth a look.

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