A diversified, funds-only portfolio can deliver reliable 6-7% income and market-matching growth, ideal for retirees seeking simplicity and peace of mind. Asset allocation spans dividend growth, bonds, real estate, energy, covered calls, utilities, commodities, preferreds, and specialty funds for broad diversification. Fund selection prioritizes low fees, competent management, and minimal levera...
We take a look at the action in business development companies through the first week of August and highlight some of the key themes we are watching. BDCs underperformed despite strong early earnings, with sector valuations dipping below historical averages. Tight lending spreads continue to pressure BDC net income.
Ares Capital (ARCC) delivered a solid 2.9% NAV return in Q2, maintaining a stable dividend and strong portfolio credit metrics. Portfolio quality remains solid, though non-accruals and internal ratings worsened slightly; management remains cautious on leverage. Given its elevated valuation, we would wait for a pullback relative to the sector before adding a position.
Ares Capital is one of the very best BDCs in history. However, ARCC faces two big, growing headwinds. ARCC's dividend coverage is thin, prompting us to take a deeper look at its sustainability.
Despite a tough week for markets, I remain bullish and continue to buy dips, expecting a multi-year bull market fueled by AI and robotics. My Dividend Harvesting Portfolio's diversification helped mitigate losses, and forward dividend income continues to trend higher, hitting record monthly levels. Recent additions include NEOS Bitcoin High Income ETF, Ares Capital, and Flagstar Financial, all ...
Should you buy a weak company at a wonderful price or a wonderful company at a fair price? We look at ARCC to discuss. BDCs are heading into rougher seas, so where should you get your best income? I find wonderful income sources all over the market. Let's journey together.
Ares Capital's Q2 showed mixed results, with declining net investment income but stable fundamentals and a strong yield above 8%. Tighter dividend coverage and increased non-accruals are concerns, but ample liquidity and spillover income support near-term dividend safety. NAV grew slightly and the balance sheet remains solid, but macro headwinds limit upside and may pressure future dividends.
Blue-chip dividend stocks are great for compounding wealth, but valuation discipline is crucial for strong returns. I discuss 3 popular blue-chip dividend stocks that are due for a sharp pullback. I'm avoiding these three names and focusing on blue-chip dividend stocks with more compelling valuations in my portfolio.
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