Ares Capital: I Overestimated This One

  • Ares Capital remains a solid BDC with strong fundamentals, but recent performance has lagged the S&P 500, prompting a downgrade from 'strong buy' to 'buy'. The company's diversified portfolio, focus on secured debt, and broad industry exposure help mitigate risk and support consistent shareholder returns. The firm's yield has dropped, but it is still quite hefty at this time.