Ares Capital: 40 Big-Dividend BDCs Compared Summary This report compares valuable data on over 40 big-dividend BDCs. One name from the list, Ares Capital, is reviewed in detail, including its business model, portfolio characteristics, competitive advantages, dividend safety, valuation, risks and more. We conclude with a couple critical takeaways for income-focused investors. This idea was discussed in more depth with members of my private investing community, Big Dividends PLUS. Learn More »

If you are an income-focused investor, you’ve likely come across business development companies (or "BDCs") more than once. Known for their big dividend yields, these unique investment companies basically provide financing (mainly loans and sometimes equity investments) to smaller middle market businesses. In this article, we share important data on over 40 big-dividend BDCs and then dive deeper into one specific name from the list, Ares Capital (NASDAQ:ARCC).

40 Big-Dividend BDCs:

For starters, here is a look at some important data on over 40 big-dividend BDCs (sorted alphabetically), including dividend yield, current/historical price-to-book values and more.

Obviously, if you are an income-focused investor, dividend yield can be an important metric to look at, but it is not the "end all, be all" factor (as we explain in more detail later in this report). Another important factor is price to (tangible) book value—because it can give an idea about current valuation (for example, BDCs trading at a discount to book value can be attractive, but certain BDC’s also warrant trading at a premium). Also notice, the table includes 5-year price-to-book range (this can help you understand a particular BDC’s current valuation as compared to where it has traded historically).

Generally speaking, we like to own BDCs with attractive business models, trading at attractive prices (as compared to book value) and with...

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