Should You Buy Ares Capital Corporation Stock While It's Below $21?

Over the past few decades, banks have stepped back from lending to specific segments of the economy, creating a massive opportunity for business development companies like Ares Capital Corporation (NASDAQ: ARCC). The company lends to middle-market companies and is an appealing stock for investors seeking passive income, thanks to its 9.3% dividend yield.However, private credit has come under scrutiny amid the failures of troubled borrowers like First Brands and Tricolor, which have highlighted some of the risks of lending to mid-sized companies. Investors grew more concerned when JPMorgan Chase CEO Jamie Dimon said, "When you see one cockroach, there's probably more."Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool