Why Buying $1,000 of This 10.6%-Yielding Dividend Stock Could Be a Brilliant Move
The higher the dividend yield, the higher the level of risk. That assumption has been the conventional wisdom of investors for a long time. It's usually correct -- but not always.
In some cases, stocks offer high yields without commensurately higher risk. I think that Ares Capital (NASDAQ: ARCC) stands out as a great example. Here's why buying $1,000 of this 10.6%-yielding dividend stock could be a brilliant move.
The main reason to even consider buying shares of Ares Capital is its dividend. However, some income investors might worry about whether the company can continue paying the dividend at current levels. My response to that concern is that Ares' dividend appears to be quite sustainable.
Source Fool.com
