BIZD - Ares Capital Vs. Capital Southwest: Are These 10% Yields A Buy?

2024-02-02 11:00:00 ET

Summary

• Ares Capital and Capital Southwest are blue chip dividend stocks with ~10% yields.
• We issued Buy ratings on them 13 months ago and the stocks have delivered exceptional performance since then.
• We compare ARCC and CSWC side-by-side and offer our take on which is the better buy today.

A little over a year ago, I compared two blue-chip Business Development Companies ( BIZD ) in Ares Capital Corp stock ( ARCC ) and Capital Southwest stock ( CSWC ). In that analysis, we rated both stocks as Buys . Since then, our bullishness has been rewarded, as both (and CSWC in particular) have delivered very strong total returns for shareholders:

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