Is Ares Capital Stock a Buy?
In September, the Federal Reserve cut its benchmark interest rate for the first time in four years. That long-awaited reduction reflected the fact that inflation had cooled off significantly, and signaled that the Fed was pivoting back to a focus on promoting economic growth and employment again. It also indicated that fixed-income investments like CDs and U.S. Treasury bills would become less attractive as their yields declined.
That trend, which has already reduced the 10-year U.S Treasury's yield to 4.1%, is driving many conservative investors away from fixed-income assets and back toward high-yielding dividend stocks. One such stock that has been attracting a lot of attention is Ares Capital (NASDAQ: ARCC), which at its current share price yields a massive 8.9%. Should you invest in it today?
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Source Fool.com
