2023-06-26 06:36:00 ET
Income investing can be a strategy that gets investors through times of market volatility. While a stock's share price can swing from one extreme to another, the payout is often more stable by comparison. That can help investors maintain an ownership mindset rather than a trading mindset.
Ares Capital (NASDAQ: ARCC) and Digital Realty Trust (NYSE: DLR) are two businesses that appear to pay reasonably safe dividends. Investing $3,350 in each of these two stocks could generate $500 in starting annual passive income for investors.
What is a business to do if it can't secure financing through traditional means to expand its operations? This is a valid question, because there has been an approximately 50% decline in banks' share of middle market lending over the last 29 years. Increasingly, the needs of such companies are being fulfilled by business development companies (BDCs ) such as Ares Capital.
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Want $500 in Annual Dividend Income? Invest $6,700 in These 2 High-Yielding Stocks