Top High-Yield Stocks: Ares Capital and More
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy ARCC?
Source: Fool
- Ares Capital Stability: Ares Capital currently boasts a 9.5% dividend yield, and as a registered investment company, it must distribute at least 90% of its taxable income, ensuring its stability and attractiveness in middle-market financing.
- Starwood Property Trust Success: Leading with a 10.7% dividend yield, Starwood Property Trust has maintained its dividend without cuts for over a decade, successfully diversifying its portfolio to enhance its competitive edge in the real estate market.
- Western Midstream Partners Growth Potential: With a distribution yield of 9%, Western Midstream Partners has rebounded its payout to pre-pandemic levels after a reset during the pandemic, and it plans to further increase distributions through acquisitions and infrastructure investments.
- Attracting Passive Income Investors: Ares Capital, Starwood Property Trust, and Western Midstream Partners all offer yields up to 10.7%, appealing to investors seeking stable passive income and demonstrating strong future distribution potential.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ARCC?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ARCC
Wall Street analysts forecast ARCC stock price to rise
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 18.950
Low
20.00
Averages
21.75
High
23.00
Current: 18.950
Low
20.00
Averages
21.75
High
23.00
About ARCC
Ares Capital Corporation is a specialty finance company focused on providing direct loans and other investments in private middle market companies in the United States. The Company invests primarily in first lien senior secured loans (including unitranche loans, which are loans that combine both senior and subordinated debt, generally in a first lien position), and second lien senior secured loans. In addition to senior secured loans, it also invests in subordinated debt, which in some cases includes an equity component, and preferred equity. It also may invest up to 30% of its portfolio in non-qualifying assets. Its investment activities are focused on industries, such as software and services, health care services, commercial and professional services, financial services, commercial and professional services, insurance services, energy, food and beverage and others. The Company is externally managed by Ares Capital Management LLC (investment adviser).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Markets Seek Trump's Assurance on Oil Prices: Don't Rely on It and 5 Other Key Updates for Today.
- Market Reaction: The Iran conflict is causing volatility in the markets, but there is no widespread panic among investors.
- Investor Sentiment: Investors are seeking clarity on when the fighting might end, as they are receiving mixed signals regarding potential negotiations.
See More
Market Watch: Oil Price Surge and Corporate Developments
- Oil Price Surge: Global benchmark Brent crude prices have surged 8% to over $84 per barrel, reaching a new 52-week high, driven by fears of prolonged supply disruptions that could hinder global economic recovery.
- Apple Price Target Raised: Barclays raised its price target on Apple from $239 to $248, adjusting estimates based on expectations for the upcoming foldable and Pro models, although the market's muted response suggests a need to monitor its performance among megacaps.
- MongoDB Shares Plummet: MongoDB shares fell 27% after its flagship database product Atlas reported a slower-than-expected growth rate of 29% in Q4, coupled with disappointing revenue guidance for fiscal 2027, indicating increased competitive pressures.
- Target Shares Rise: Target's stock rose over 4% in premarket trading after the retailer reported better-than-expected earnings for the holiday quarter, with new CEO indicating positive year-over-year sales in February, marking a significant milestone in the company's growth trajectory.
See More
Stocks May Face Extended Winter of Discontent Beyond the Season, Along with BDC Investment Picks.
Current Sentiment: The present is marked by a sense of discontent and dissatisfaction.
Future Concerns: There is a prevailing anxiety about a potentially dystopian future.
See More
SRLN's Performance May Signal Stock Market Trends
- ETF Asset Size: The State Street Blackstone Senior Loan ETF (SRLN) manages $5.6 billion in assets and aims to provide stable income by investing at least 80% of its net assets in senior loans, yet its low profile may affect investor confidence.
- Technical Indicator Warning: SRLN recently fell below its 200-day moving average, and if it fails to recover, it could signal larger declines in the stock market, as historical data shows such breaks often precede significant sell-offs.
- Increased Market Volatility: Concerns over potential issues in private credit and major tech companies overspending on AI have led to heightened market volatility, with direct lender Blue Owl Capital tumbling over 24% this year.
- Inflation Data Impact: Following the release of much hotter-than-expected January U.S. wholesale inflation data, stocks struggled, with Hartnett warning that breaks of key levels may indicate an impending “proper flush” in risk assets.
See More
Global M&A Activity Surges in 2025
- M&A Activity Rebound: Global M&A deal value surged to $4.9 trillion in 2025, marking a 40% increase and the second-highest level since 2021, reflecting strong market demand and confidence in large transactions.
- Funding Squeeze Impact: Despite strong appetite for deals, the proportion of capital allocated to M&A hit a 30-year low in 2025, forcing companies to be more selective in their transaction choices to ensure clear returns on investment.
- AI-Driven Transactions: Over 73% of the increase in deal value came from mega-deals valued at over $5 billion, highlighting the significant impact of AI-related demand on the M&A market, with expectations for continued large transactions in 2026.
- Private Equity Dominance: Private equity accounts for approximately 40% of global M&A activity, as firms actively seek investment opportunities amid changing capital markets, driving increased transaction activity.
See More
Deutsche Bank Downgrades Blue Owl Capital Rating
- Rating Downgrade: Deutsche Bank analyst Brian Bedell downgraded Blue Owl Capital's stock from buy to hold and slashed the price target from $15 to $10, indicating a 4% downside, reflecting concerns over the company's future profitability.
- Stock Volatility: Blue Owl's shares have plummeted 52% over the past 12 months and 30% this year, primarily due to an overall sell-off in the private credit market, exacerbated by fears surrounding exposure to software industry loans.
- Liquidity Restrictions: The company permanently restricted withdrawals from its retail debt fund amid plans to wind down the portfolio, further intensifying market concerns about its liquidity, leading to a 2% drop in stock price on Tuesday morning.
- Growth Outlook: While Bedell noted that management has diversified Blue Owl over the past two to three years, enhancing its growth outlook, he believes the stock is fairly valued at current levels and lacks near-term catalysts for price advancement.
See More
Markets Seek Trump's Assurance on Oil Prices: Don't Rely on It and 5 Other Key Updates for Today.
- Market Reaction: The Iran conflict is causing volatility in the markets, but there is no widespread panic among investors.
- Investor Sentiment: Investors are seeking clarity on when the fighting might end, as they are receiving mixed signals regarding potential negotiations.
See More
Market Watch: Oil Price Surge and Corporate Developments
- Oil Price Surge: Global benchmark Brent crude prices have surged 8% to over $84 per barrel, reaching a new 52-week high, driven by fears of prolonged supply disruptions that could hinder global economic recovery.
- Apple Price Target Raised: Barclays raised its price target on Apple from $239 to $248, adjusting estimates based on expectations for the upcoming foldable and Pro models, although the market's muted response suggests a need to monitor its performance among megacaps.
- MongoDB Shares Plummet: MongoDB shares fell 27% after its flagship database product Atlas reported a slower-than-expected growth rate of 29% in Q4, coupled with disappointing revenue guidance for fiscal 2027, indicating increased competitive pressures.
- Target Shares Rise: Target's stock rose over 4% in premarket trading after the retailer reported better-than-expected earnings for the holiday quarter, with new CEO indicating positive year-over-year sales in February, marking a significant milestone in the company's growth trajectory.
See More
Stocks May Face Extended Winter of Discontent Beyond the Season, Along with BDC Investment Picks.
Current Sentiment: The present is marked by a sense of discontent and dissatisfaction.
Future Concerns: There is a prevailing anxiety about a potentially dystopian future.
See More
SRLN's Performance May Signal Stock Market Trends
- ETF Asset Size: The State Street Blackstone Senior Loan ETF (SRLN) manages $5.6 billion in assets and aims to provide stable income by investing at least 80% of its net assets in senior loans, yet its low profile may affect investor confidence.
- Technical Indicator Warning: SRLN recently fell below its 200-day moving average, and if it fails to recover, it could signal larger declines in the stock market, as historical data shows such breaks often precede significant sell-offs.
- Increased Market Volatility: Concerns over potential issues in private credit and major tech companies overspending on AI have led to heightened market volatility, with direct lender Blue Owl Capital tumbling over 24% this year.
- Inflation Data Impact: Following the release of much hotter-than-expected January U.S. wholesale inflation data, stocks struggled, with Hartnett warning that breaks of key levels may indicate an impending “proper flush” in risk assets.
See More
Global M&A Activity Surges in 2025
- M&A Activity Rebound: Global M&A deal value surged to $4.9 trillion in 2025, marking a 40% increase and the second-highest level since 2021, reflecting strong market demand and confidence in large transactions.
- Funding Squeeze Impact: Despite strong appetite for deals, the proportion of capital allocated to M&A hit a 30-year low in 2025, forcing companies to be more selective in their transaction choices to ensure clear returns on investment.
- AI-Driven Transactions: Over 73% of the increase in deal value came from mega-deals valued at over $5 billion, highlighting the significant impact of AI-related demand on the M&A market, with expectations for continued large transactions in 2026.
- Private Equity Dominance: Private equity accounts for approximately 40% of global M&A activity, as firms actively seek investment opportunities amid changing capital markets, driving increased transaction activity.
See More
Deutsche Bank Downgrades Blue Owl Capital Rating
- Rating Downgrade: Deutsche Bank analyst Brian Bedell downgraded Blue Owl Capital's stock from buy to hold and slashed the price target from $15 to $10, indicating a 4% downside, reflecting concerns over the company's future profitability.
- Stock Volatility: Blue Owl's shares have plummeted 52% over the past 12 months and 30% this year, primarily due to an overall sell-off in the private credit market, exacerbated by fears surrounding exposure to software industry loans.
- Liquidity Restrictions: The company permanently restricted withdrawals from its retail debt fund amid plans to wind down the portfolio, further intensifying market concerns about its liquidity, leading to a 2% drop in stock price on Tuesday morning.
- Growth Outlook: While Bedell noted that management has diversified Blue Owl over the past two to three years, enhancing its growth outlook, he believes the stock is fairly valued at current levels and lacks near-term catalysts for price advancement.
See More
