Top 10 High Dividend Stocks To Buy For 2016

Top 10 High Dividend Stocks To Buy For 2016: Ares Capital Corp (ARCC)

Ares Capital Corporation (Ares Capital), incorporated on April 16, 2004, is a specialty finance company, which is a closed-end, non-diversified management investment company. The Company's wholly owned subsidiaries and vehicles managed or sub-managed by its wholly owned portfolio company, Ivy Hill Asset Management, L.P. (IHAM). It is externally managed by its investment adviser, Ares Capital Management LLC (Ares Capital Management or its investment adviser), a wholly owned subsidiary of Ares Management LLC (Ares Management), a global alternative asset manager. Ares Operations LLC (Ares Operations or administrator), its administrator, a wholly owned subsidiary of Ares Management, provides the administrative services. It invests in United States middle-market companies. It invests in first and second lien senior loans and mezzanine debt, which in some cases includes an equity component. It also makes preferred and/or common equity investments.

The Company's portfolio company, IHAM, manages 10 unconsolidated credit vehicles and sub-manages or sub-advises four other unconsolidated credit vehicles (these vehicles managed or sub-managed/sub-advised by IHAM). It has also made direct investments in securities of certain of these vehicles. Ares Management's (Ares) finance activities include the origination, acquisition and management of senior loans, bonds, mezzanine debt and special situation investments. Ares' private equity activities focus on providing flexible, junior capital to middle-market companies.

The Company has an investment portfolio of first and second lien loans, mezzanine debt and equity investments in private middle-market companies. The Company and General Electric Capital Corporation and GE Global Sponsor Finance LLC (GE) co-invest through the Senior Secured Loan Fund LLC, which operates ! using the name Senior Secured Loan Program. As of December 31, 2011, the Senior Secured Loan Program (SSLP) consis ted of a portfolio of loans to 32 different borrowers and th! e portfolio companies in the SSLP are in industries similar to the companies in Ares Capital's portfolio. It also makes preferred and/or common equity investments. It makes senior secured loans in the form of first and/or second lien loans. Its first and second lien loans have terms of three to 10 years. The list of the industries, in which it has invested include aerospace and defense, business services, consumer products, containers and packaging, education, energy, environmental services, financial services, food and beverage, healthcare services, investment funds and vehicles, manufacturing, restaurant and food services, retail, and telecommunications. It has made investments in its portfolio company, IHAM, which manages 10 unconsolidated credit vehicles: Ivy Hill Middle Market Credit Fund, Ltd. (Ivy Hill I), Ivy Hill Middle Market Credit Fund II, Ltd. (Ivy Hill II), Ivy Hill Middle Market Credit Fund III, Ltd. (Ivy Hill III), Ivy Hill Senior Debt Fund, L.P. and related vehicles (Ivy Hill SDF and, together with Ivy Hill I, Ivy Hill II and Ivy Hill III, the Ivy Hill Funds); Knightsbridge CLO 2007-1 Limited, Emporia Preferred Funding I, Ltd., Emporia Preferred Funding II, Ltd. and Emporia Preferred Funding III, Ltd. (collectively, the Emporia Funds), and Ares Private Debt Strategies Fund II, L.P. and Ares Private Debt Strategies Fund III, L.P. (collectively, the PDS Funds). In addition, IHAM serves as the sub-adviser/sub-manager for four others: CoLTS 2005-1 Ltd., CoLTS 2005-2 Ltd. and CoLTS 2007-1 Ltd. (collectively, the CoLTS Funds), and FirstLight Funding I, Ltd. (FirstLight).

Advisors' Opinion:

• [By Jordan Wathen]

  Alas, Eliasek's second comment about making sure the assets are qualifying rules out a senior secured lending program -- a strategy employed by competitors including Golub Capital!   (NASDA! Q: GBDC  ) and Ares Capital  (NASDAQ: ARCC  ) .

• [By salamat_uri]

  For dividend investors, Prospect Capital offers a lot of reasons to get excited. But for those that are interested in the stock and are still looking for broad exposure to the BDC space as a whole, a suitable alternative can be found in the Market Vectors BDC Income ETF (BIZD) which offers well-diversified access to 28 BDCs. Prospect Capital is included in the mix, and other notable examples can be seen in names like Ares Capital (ARCC), which is one of the most stable names in the space. Ares Capital has over $8 billion in reported assets and has directed its attention at a large number of industry segments, with investment exposure in nearly 200 companies.

• [By Sally Jones]

  Highlight: Ares Capital Corporation (ARCC)

  The share price is currently around $17.57 or 5.9% off the 52-week high of $18.67. Its yield is 8.60%.

• [By Dan Caplinger]

  Next Tuesday, Ares Capital (NASDAQ: ARCC  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed, knee-jerk reaction to news that turns out to be exactly the wrong move.

source from Top Stocks For 2015:http://www.topstocksblog.com/top-10-high-dividend-stocks-to-buy-for-2016.html