#9 – Ares Capital Corporation (NYSE: ARCC)
Current Yield: 9.3%
High-yield industries like business development companies (BDCs) took a bigger hit than most in 2020. BDCs provide financing to mid-market businesses that are too large for bank loans, but too small to raise funds in the public markets.
But BDCs are interesting plays in 2021. As Covid starts to get behind use, they should have a nice bounce. Ares is the world’s largest BDC and also one of the more conservatively allocated. It has 73% of its portfolio invested in first and second-lien loans. As such, Ares is the first to get paid. With a current dividend yield of over 9%, it will make your mouth water.