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Is Ares Capital Stock a Buy Now?

TheMotleyFool

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The big selling point for Ares Capital (NASDAQ: ARCC) is its huge 9.6% dividend yield. Part of the reason for that is that, as a business development company (BDC), Ares Capital's corporate structure is designed to pass income on to investors.

However, there's an important wrinkle with BDCs that you can't ignore if you are considering buying Ares Capital because of its lofty yield.

Image source: Getty Images.

Source Fool.com

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