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Yahoo
2 days ago
- Business
- Yahoo
This High-Yield Dividend Stock (8.3%) Has Analysts Saying ‘Strong Buy' — Should You?
If you're looking for a smart way to grow your wealth while earning passive income, investing in high-yield dividend stocks might be a strategy worth exploring. These stocks offer regular payouts as they often belong to companies with strong financials and reliable earnings. When a company can consistently pay dividends and maintain a healthy payout ratio, it's typically a sign of long-term stability and resilience. This can translate into dependable income and steady capital appreciation for investors. More News from Barchart Kraft Heinz Could Be Breaking Up. How Should You Play the High-Yield Dividend Stock Here? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Among the reliable dividend stocks, Ares Capital (ARCC) stands out for its high yield and a solid history of dividend growth. With a dividend yield of about 8.3%, this specialty finance company offers an attractive income stream for those seeking to boost their portfolio's cash flow. Moreover, the stock has also earned a 'Strong Buy' consensus rating from analysts, signaling strong confidence in its future performance. Ares Capital Is a Dependable, High-Yield Stock Ares Capital is a business development company specializing in providing direct loans and private financing to middle-market companies across the U.S. This segment of the market is often underserved by large traditional banks, creating demand for Ares Capital's services and offering attractive opportunities for long-term growth and income. Ares Capital's diversified portfolio, strong underwriting practices, and disciplined risk management positions it well to consistently deliver solid core earnings to cover its payouts. For instance, Ares Capital's portfolio is highly diversified, with 566 portfolio companies and an average exposure of less than 0.2% per investment. This broad diversification helps reduce exposure to any single company or sector, enhancing portfolio resilience in the face of market volatility. The company also focuses on lending to less cyclical, service-oriented businesses with solid fundamentals, which helps it maintain stability even in uncertain economic environments. This approach continues to support both earnings and its impressive track record of dividend payouts. In its first quarter of 2025, Ares Capital reported core earnings of $0.50 per share. Notably, credit quality remained robust, with nonaccrual loans and higher-risk credits holding at historically low levels. The company also maintained strong investment momentum, making $3.5 billion in gross commitments during the quarter. The company's balance sheet remained solid and conservatively leveraged. This leaves significant capital to deploy into new opportunities. Its investment portfolio, which stood at $27.1 billion at fair value, grew modestly from the previous quarter and remains heavily weighted toward U.S.-based service businesses, which are generally less exposed to macroeconomic shocks such as rising tariffs. All of this supports the company's ability to generate and return consistent cash to shareholders. For the second quarter of 2025, Ares Capital announced a dividend of $0.48 per share, marking its 63rd consecutive quarter of stable or increasing payouts. Moreover, this specialty finance company has increased its dividend for 15 consecutive years. Ares Capital remains well-positioned to sustain and grow its dividend in the future. Its core earnings consistently exceed current payout levels, and there's optimism around potential realized gains in the portfolio, which could further boost distributable income. Should You Buy Ares Capital Stock? Ares Capital is a compelling investment for investors seeking both income and growth. With a robust 8.3% dividend yield, a diversified and resilient portfolio, and a 15-year track record of dividend growth, Ares Capital emerges as a dependable high-yield stock. Further, analysts' 'Strong Buy' consensus reflects confidence in Ares Capital's earnings strength and long-term outlook. Its solid risk management practices, low leverage profile, and focus on less-cyclical service sectors offer meaningful insulation against market volatility and economic uncertainty. Additionally, the company's continued ability to generate core earnings above its dividend obligations suggests potential for future dividend growth. While no investment is without risk, Ares Capital's strong fundamentals and shareholder-friendly policies make it an attractive high-yield dividend stock. On the date of publication, Amit Singh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
3 Dividend Stocks to Hold for the Next 10 Years
Key Points American Express gets money from its card and also by providing loans. Coca-Cola's global footprint is a strength. McDonald's is the world's top fast-food franchise and plans to open 2,200 new locations this year. 10 stocks we like better than Coca-Cola › I've always appreciated dividend stocks as a solid strategy for any investment portfolio. While I recognize the importance of growth stocks (and hold several of them), stocks that represent companies that pay a solid, consistent dividend also are an important tool for growing wealth. The best thing about dividend stocks is that they're ideal for all types of investors. If you're just starting out or a few years into building your portfolio, dividends are a great way to turbocharge your savings. In addition to the gains you get when the stock price rises, you can take the quarterly dividend payout and reinvest it, adding to your positions and growing wealth more quickly. If you're in retirement and starting to draw down your investments, dividend stocks are an ideal way to keep the income flowing. Many investors in retirement use dividend payouts to pay for living expenses, which keeps them from drawing down their retirement funds too quickly. There are hundreds of dividend stocks from which to choose, but I prefer ones from established companies that provide consistent payouts. Here are three that are worth considering today. 1. Coca-Cola I like Coca-Cola (NYSE: KO) because it has a dominant position in the beverage industry, holding the No. 1 position in 2024 with a 48% market share, according to Statista. And there's plenty to drink aside from the famous Cola-Cola carbonated beverage. The company also sells bottled water, sports drinks, tea, juices and a line of alcoholic beverages. In all, the company has 30 brands that are each valued at a minimum of $1 billion. Revenue in the first quarter declined 2% to $11.1 billion because of slumping sales in North America. But Coca-Cola was able to mitigate losses by increasing sales in China, India, and Brazil -- and the company's global footprint will continue to be a hedge against weakness in any one geographic area. Net income attributable to shareholders as $3.33 billion and $0.77 per share, up from $3.18 and $0.74 per share in the first quarter of 2024. Coca-Cola also offers a strong dividend yield of 2.9%. 2. American Express Like Coca-Cola, American Express (NYSE: AXP) is a favored dividend stock held by Warren Buffett in Berkshire Hathaway's portfolio. Berkshire currently has a dominant 21.6% stake in American Express, holding 151.6 million shares. American Express stands out from other credit card companies because it caters to a more affluent base, with a stronger emphasis on its gold and platinum cards, as well as corporate accounts. As an American Express customer, I can attest that the travel perks are extremely generous. But American Express also is different in how it makes money. Not only does it issue cards like Visa and Mastercard, but it operates its own payment network that allows it to extend credit and earn income from the interest it charges on loans. Revenue in the first quarter was $2.6 billion and $3.64 per share, up from $2.4 billion and $3.33 billion in the same quarter of 2024. American Express also has a dividend yield of 1%. 3. McDonald's McDonald's (NYSE: MCD) is the dominant fast-food chain in the world, boasting more than 43,000 locations in over 100 countries. From its start as a single restaurant in California, McDonald's revolutionized the industry with its consistent standards and franchise model. After a customer backlash last year over higher prices and inflation, McDonald's has been aggressive in pushing value menus and deals, including the return of its chicken snack wraps this spring. It's also driving traffic through its loyalty program, which includes 175 million customers who are active at least every 90 days within 60 global markets. McDonald's attributes $30 billion in overall sales to its loyalty membership program. Global sales were down 0.1% in 2024, and that trend continued in the first quarter of 2025, as global sales dropped 0.1% from a year ago. In the U.S., sales were down 3.6% from a year ago, and earnings per share of $2.60 was down 2% from a year ago. However, McDonald's still plans to open 2,200 new locations in 2025, which it says will boost its global sales growth by more than 2% this year. With its 2.4% dividend yield, McDonald's is a quality dividend stock for a long-term investor. Should you buy stock in Coca-Cola right now? Before you buy stock in Coca-Cola, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Coca-Cola wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 American Express is an advertising partner of Motley Fool Money. Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Mastercard, and Visa. The Motley Fool has a disclosure policy. 3 Dividend Stocks to Hold for the Next 10 Years was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
3 Dividend Stocks to Hold for the Next 10 Years
Key Points American Express gets money from its card and also by providing loans. Coca-Cola's global footprint is a strength. McDonald's is the world's top fast-food franchise and plans to open 2,200 new locations this year. 10 stocks we like better than Coca-Cola › I've always appreciated dividend stocks as a solid strategy for any investment portfolio. While I recognize the importance of growth stocks (and hold several of them), stocks that represent companies that pay a solid, consistent dividend also are an important tool for growing wealth. The best thing about dividend stocks is that they're ideal for all types of investors. If you're just starting out or a few years into building your portfolio, dividends are a great way to turbocharge your savings. In addition to the gains you get when the stock price rises, you can take the quarterly dividend payout and reinvest it, adding to your positions and growing wealth more quickly. If you're in retirement and starting to draw down your investments, dividend stocks are an ideal way to keep the income flowing. Many investors in retirement use dividend payouts to pay for living expenses, which keeps them from drawing down their retirement funds too quickly. There are hundreds of dividend stocks from which to choose, but I prefer ones from established companies that provide consistent payouts. Here are three that are worth considering today. 1. Coca-Cola I like Coca-Cola (NYSE: KO) because it has a dominant position in the beverage industry, holding the No. 1 position in 2024 with a 48% market share, according to Statista. And there's plenty to drink aside from the famous Cola-Cola carbonated beverage. The company also sells bottled water, sports drinks, tea, juices and a line of alcoholic beverages. In all, the company has 30 brands that are each valued at a minimum of $1 billion. Revenue in the first quarter declined 2% to $11.1 billion because of slumping sales in North America. But Coca-Cola was able to mitigate losses by increasing sales in China, India, and Brazil -- and the company's global footprint will continue to be a hedge against weakness in any one geographic area. Net income attributable to shareholders as $3.33 billion and $0.77 per share, up from $3.18 and $0.74 per share in the first quarter of 2024. Coca-Cola also offers a strong dividend yield of 2.9%. 2. American Express Like Coca-Cola, American Express (NYSE: AXP) is a favored dividend stock held by Warren Buffett in Berkshire Hathaway's portfolio. Berkshire currently has a dominant 21.6% stake in American Express, holding 151.6 million shares. American Express stands out from other credit card companies because it caters to a more affluent base, with a stronger emphasis on its gold and platinum cards, as well as corporate accounts. As an American Express customer, I can attest that the travel perks are extremely generous. But American Express also is different in how it makes money. Not only does it issue cards like Visa and Mastercard, but it operates its own payment network that allows it to extend credit and earn income from the interest it charges on loans. Revenue in the first quarter was $2.6 billion and $3.64 per share, up from $2.4 billion and $3.33 billion in the same quarter of 2024. American Express also has a dividend yield of 1%. 3. McDonald's McDonald's (NYSE: MCD) is the dominant fast-food chain in the world, boasting more than 43,000 locations in over 100 countries. From its start as a single restaurant in California, McDonald's revolutionized the industry with its consistent standards and franchise model. After a customer backlash last year over higher prices and inflation, McDonald's has been aggressive in pushing value menus and deals, including the return of its chicken snack wraps this spring. It's also driving traffic through its loyalty program, which includes 175 million customers who are active at least every 90 days within 60 global markets. McDonald's attributes $30 billion in overall sales to its loyalty membership program. Global sales were down 0.1% in 2024, and that trend continued in the first quarter of 2025, as global sales dropped 0.1% from a year ago. In the U.S., sales were down 3.6% from a year ago, and earnings per share of $2.60 was down 2% from a year ago. However, McDonald's still plans to open 2,200 new locations in 2025, which it says will boost its global sales growth by more than 2% this year. With its 2.4% dividend yield, McDonald's is a quality dividend stock for a long-term investor. Should you buy stock in Coca-Cola right now? Before you buy stock in Coca-Cola, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Coca-Cola wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 American Express is an advertising partner of Motley Fool Money. Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Mastercard, and Visa. The Motley Fool has a disclosure policy. 3 Dividend Stocks to Hold for the Next 10 Years was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-06-2025
- Business
- Yahoo
12 Cities Where You Can Really Get Rich Right Now
Regular GOBankingRates readers may recognize the 12 cities in this article as those that ranked as the top cities where the upper-middle class is growing the most. Considering that the upper-middle class has grown by 80% or more in these places, Americans building their wealth may consider making a move to one of these 12 cities. View More: Read Next: Take a look at the top cities for upper-middle class growth along with insight as to how the upper-middle class population is becoming increasingly wealthy in these metros. Number of upper-middle class households: 7,795 % increase in upper-middle class households (2018 to 2023): 125.1% % of population that is now upper-middle class: 16% Over a five-year span, North Charleston has seen a staggering increase of 125% in its upper-middle class households. According to a 2024 SmartAsset report on the nation's richest counties, Charleston ranked No. 1 in South Carolina. The median household income in this city is $62,789 while the investment income is $146,964. Be Aware: See More: Number of upper-middle class households: 16,463 % increase in upper-middle class households (2018 to 2023): 122.2% % of population that is now upper-middle class: 21% If Port St. Lucie's upper-middle class population is booming, it may be thanks to the city's strong local economy. Named one of the best places to live in 2024 by Money, Port St. Lucie anticipates job growth increasing by more than 10% over the next three years, Moody's Analytics data shows. Check Out: Number of upper-middle class households: 10,525 % increase in upper-middle class households (2018 to 2023): 114.3% % of population that is now upper-middle class: 14% Number of upper-middle class households: 8,020 % increase in upper-middle class households (2018 to 2023): 100.7% % of population that is now upper-middle class: 18% Number of upper-middle class households: 7,314 % increase in upper-middle class households (2018 to 2023): 98.9% % of population that is now upper-middle class: 16% Americans angling to become wealthy sooner than later may decide to move to Palm Bay. In addition to our in-house study showing a 99% increase in upper-middle class households over a five-year period, SmartAsset ranked Palm Bay as the top city for high-income household growth in 2025. Find Out: Number of upper-middle class households: 11,079 % increase in upper-middle class households (2018 to 2023): 95.2% % of population that is now upper-middle class: 13% Knoxville, which ranked among Money's best places to live in 2024, may hold its steady economy accountable for the sizable increase in upper-middle class households. According to data from Moody's Analytics, Knoxville is predicted to experience a 4.4% job growth in the next three years. Number of upper-middle class households: 45,486 % increase in upper-middle class households (2018 to 2023): 93.5% % of population that is now upper-middle class: 23% Number of upper-middle class households: 11,107 % increase in upper-middle class households (2018 to 2023): 92.6% % of population that is now upper-middle class: 16% The wealthy are not only increasing in Rhode Island, but they are making strategic choices as to where to reside. The Providence Journal shared a ranking of the state's richest towns and cities in 2023 and Providence ranked in 37th place. (North Providence and East Providence ranked in 33rd and 34th place, respectively.) Learn More: Number of upper-middle class households: 7,953 % increase in upper-middle class households (2018 to 2023): 91.6% % of population that is now upper-middle class: 17% Pompano Beach might not be flying under the radar for much longer as a top Florida city for growing wealth. The massive 92% increase of upper-middle class households over five years indicates the wealthy are coming to Pompano Beach and staying there. According to The Mastropieri Group, an impending revitalization to downtown and high-end beachfront condos in development make the city's real estate one to watch. Number of upper-middle class households: 24,992 % increase in upper-middle class households (2018 to 2023): 86.5% % of population that is now upper-middle class: 13% Will Miami never not be a hotspot for wealthy Americans? Beyond the nearly 87% increase of its upper-middle class households, millionaires are increasingly Miami-bound. A study from Henley & Partners revealed Miami's millionaire population is now at 39,000 residents, increasing by 94% from 2014 to 2024. Number of upper-middle class households: 126,665 % increase in upper-middle class households (2018 to 2023): 85.5% % of population that is now upper-middle class: 16% Discover Next: Number of upper-middle class households: 50,518 % increase in upper-middle class households (2018 to 2023): 80.7% % of population that is now upper-middle class: 17% In 2025, The Palm Beach Post reported West Palm Beach is considered one of the five fastest-growing 'wealth hubs' according to a report from Henley & Partners. West Palm Beach isn't just a haven for the upper-middle class or millionaires either. As of 2025, Forbes data revealed 68 billionaires have residences in Palm Beach. Methodology: For this study, GOBankingRates analyzed cities with at least 40,000 households, according to the U.S. Census American Community Survey, to find the cities where the upper-middle class has grown the most. Households that earn between $100,000 and $149,000 are considered upper-middle class. Using the American Community Survey, the total population, total households, household median income, households in 2018 that earned $100,000 to $149,000, and households in 2023 that earned $100,000 to $149,000 were all sourced. The percent change in upper-middle-class households was calculated and the cities were sorted to show the largest increase in upper-middle-class households. All data was collected on and is up to date as of April 1, 2025. More From GOBankingRates 6 Hybrid Vehicles To Stay Away From in Retirement This article originally appeared on 12 Cities Where You Can Really Get Rich Right Now Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-06-2025
- Business
- Yahoo
12 Cities Where You Can Really Get Rich Right Now
Regular GOBankingRates readers may recognize the 12 cities in this article as those that ranked as the top cities where the upper-middle class is growing the most. Considering that the upper-middle class has grown by 80% or more in these places, Americans building their wealth may consider making a move to one of these 12 cities. View More: Read Next: Take a look at the top cities for upper-middle class growth along with insight as to how the upper-middle class population is becoming increasingly wealthy in these metros. Number of upper-middle class households: 7,795 % increase in upper-middle class households (2018 to 2023): 125.1% % of population that is now upper-middle class: 16% Over a five-year span, North Charleston has seen a staggering increase of 125% in its upper-middle class households. According to a 2024 SmartAsset report on the nation's richest counties, Charleston ranked No. 1 in South Carolina. The median household income in this city is $62,789 while the investment income is $146,964. Be Aware: See More: Number of upper-middle class households: 16,463 % increase in upper-middle class households (2018 to 2023): 122.2% % of population that is now upper-middle class: 21% If Port St. Lucie's upper-middle class population is booming, it may be thanks to the city's strong local economy. Named one of the best places to live in 2024 by Money, Port St. Lucie anticipates job growth increasing by more than 10% over the next three years, Moody's Analytics data shows. Check Out: Number of upper-middle class households: 10,525 % increase in upper-middle class households (2018 to 2023): 114.3% % of population that is now upper-middle class: 14% Number of upper-middle class households: 8,020 % increase in upper-middle class households (2018 to 2023): 100.7% % of population that is now upper-middle class: 18% Number of upper-middle class households: 7,314 % increase in upper-middle class households (2018 to 2023): 98.9% % of population that is now upper-middle class: 16% Americans angling to become wealthy sooner than later may decide to move to Palm Bay. In addition to our in-house study showing a 99% increase in upper-middle class households over a five-year period, SmartAsset ranked Palm Bay as the top city for high-income household growth in 2025. Find Out: Number of upper-middle class households: 11,079 % increase in upper-middle class households (2018 to 2023): 95.2% % of population that is now upper-middle class: 13% Knoxville, which ranked among Money's best places to live in 2024, may hold its steady economy accountable for the sizable increase in upper-middle class households. According to data from Moody's Analytics, Knoxville is predicted to experience a 4.4% job growth in the next three years. Number of upper-middle class households: 45,486 % increase in upper-middle class households (2018 to 2023): 93.5% % of population that is now upper-middle class: 23% Number of upper-middle class households: 11,107 % increase in upper-middle class households (2018 to 2023): 92.6% % of population that is now upper-middle class: 16% The wealthy are not only increasing in Rhode Island, but they are making strategic choices as to where to reside. The Providence Journal shared a ranking of the state's richest towns and cities in 2023 and Providence ranked in 37th place. (North Providence and East Providence ranked in 33rd and 34th place, respectively.) Learn More: Number of upper-middle class households: 7,953 % increase in upper-middle class households (2018 to 2023): 91.6% % of population that is now upper-middle class: 17% Pompano Beach might not be flying under the radar for much longer as a top Florida city for growing wealth. The massive 92% increase of upper-middle class households over five years indicates the wealthy are coming to Pompano Beach and staying there. According to The Mastropieri Group, an impending revitalization to downtown and high-end beachfront condos in development make the city's real estate one to watch. Number of upper-middle class households: 24,992 % increase in upper-middle class households (2018 to 2023): 86.5% % of population that is now upper-middle class: 13% Will Miami never not be a hotspot for wealthy Americans? Beyond the nearly 87% increase of its upper-middle class households, millionaires are increasingly Miami-bound. A study from Henley & Partners revealed Miami's millionaire population is now at 39,000 residents, increasing by 94% from 2014 to 2024. Number of upper-middle class households: 126,665 % increase in upper-middle class households (2018 to 2023): 85.5% % of population that is now upper-middle class: 16% Discover Next: Number of upper-middle class households: 50,518 % increase in upper-middle class households (2018 to 2023): 80.7% % of population that is now upper-middle class: 17% In 2025, The Palm Beach Post reported West Palm Beach is considered one of the five fastest-growing 'wealth hubs' according to a report from Henley & Partners. West Palm Beach isn't just a haven for the upper-middle class or millionaires either. As of 2025, Forbes data revealed 68 billionaires have residences in Palm Beach. Methodology: For this study, GOBankingRates analyzed cities with at least 40,000 households, according to the U.S. Census American Community Survey, to find the cities where the upper-middle class has grown the most. Households that earn between $100,000 and $149,000 are considered upper-middle class. Using the American Community Survey, the total population, total households, household median income, households in 2018 that earned $100,000 to $149,000, and households in 2023 that earned $100,000 to $149,000 were all sourced. The percent change in upper-middle-class households was calculated and the cities were sorted to show the largest increase in upper-middle-class households. All data was collected on and is up to date as of April 1, 2025. More From GOBankingRates 6 Big Shakeups Coming to Social Security in 2025 This article originally appeared on 12 Cities Where You Can Really Get Rich Right Now Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
