ARCC vs OBDC: Which High Yield Stock is Best?

100 shares with OBDC currently. Thanks for the review. Can you do a review on UNIT (Uniti Group)? They pay a decent dividend.

could you make a video with Stellus Capital?

Great analysis. I’d get both.

👍📉📈📊

Proud owner of both.

I have both. Something you might want to think about is the high income fund PSF. It’s a leveraged preferred share fund.

ARCC, DCA monthly

MAIN is monthly and pays 8% yield with special dividends.

Arcc!

ARCC and OBDC both have good balance sheets. ARCC pays over its EPS and OBDC pays within. OBDC is the winner.

Also top 15 on a dividend bull video and without bots for once!

What about BXSL

Dividends from the stock market encouraged me to begin investing. What matters, in my opinion, is that if you invest and make additional money in addition to dividends, you will be able to live off of dividends without selling. It implies that you can provide that benefit for your children, giving them a head start in life. I've invested more than $600K in dividend stocks throughout the years; I'm currently buying more today and will continue to do so until the price falls even further.

I have both and have been slowly dollar cost averaging into OBDC

My bdcs' are Ares Capital and Hercules. Both have been very good to me so I'm gobbling up shares on both hand over fist.

We 100 💯 own both as well as ritm, main and arbor realty

Nice timing on this video, been buying both!

Super thought provoking!!!
Thank You🙂

Why not both?

You have MAIN in your portfolio too right?

Thank you for the informative video. I really appreciate your format and straight to the point discussion.

HAS NO ONE NOTICED THIS GUY HAS STOCKS HYPER LINKED IN THE DISCERPTION I mean div bull puts so much work in for only 100k followers

I own both and doin ok with them

Too much drama with blue owl

Great video. More on BDC's please!

Can you please make a video about high yield dividend stocks from Asia, I think it would be nice for diversity or if you already did something like that please give me the video name

Thank you for your content, it‘s really interesting!

Aren't both of them going to crash and burn once the business real estate renting markets collapse?

I choose HTGC, ARCC, GSBD, GAIN first and after that will be OBDC. Anyway there are a lot of BDC with a good return as dividend, and most of them are still very strong in such turbulent times.

Team ARCC here :)

Thoughts on SACH?

Perfect video! What site do you use in the video for the distribution overview?

When talking about dividend increases, you didn't also compare their AFFO and their ability to cover their dividends and possible future increases and special distributions.

ARCC vs OBDC vs PBDC? Risk investing in one company, or spread risk over multiple companies where ARCC and OBDC are among the largest components? For the short time that PBDC has been around, OBDC has outperformed, but PBDC has outperformed the other four of the top five holdings.

Update: Looking at the S&P BDC Index, price performance has gone nowhere but down since inception. The past year has been positive, however.

Arcc for the win. 707 shares so far and i will be adding more. Lovely income stock

Ben Felix just posted a video debunking every Dividend Investing Scammer argument. Ben Felix proves that dividend investing is wrong, immoral, and is stealing your wealth.

You don’t mention Ares Management Corp stock in your videos. The dividend is defenitely lower but It has achieved insane growth over the last few years

Great video. My only critique is that you did not highlight that 2% of non accrual means much more on 475 investments. Keep up the good content.

Blue own is more transparent, more senior loans, more diversified, holds higher interest in reliable and dependable industries like insurance and food, not to mention that Blue Owl has major institutional backing including that of a Middle East sovereign fund.

I bought ORCC (before the OBDC rebrand) at ~$12.90 and it has treated me well so far. I actually had priced in a capital loss because I wasn't sure how interest rates would affect the company but so far have been pleasantly surprised with the stock movement. The special divvy's are nice and I have faith in management.

BDCs are proving to be popular amongst politicians. Pete Sessions picked up some ARCC back in August. But Hollingsworth bought OBDC back when it was known as Owl Rock. Bought loads of it, then retired from politics at just 39 years old 🤯

ARCC has 25% maintenance while OBDC has 100%, something else to consider. You can't use your holdings of OBDC for leveraging your portfolio where as you can use the majority of your ARCC investment. Even if not for leverage, its good to have that margin loan option. Even better than getting a loan from the bank in some circumstances and it can be used for anything. Good to have that tool in your toolbox. M1 finance charges 7.25% interest on margin loans and my portfolio yields an average of 12% so I personally just keep running 50% of my available margin for leverage and just let it pay back the interest monthly and keep the extra 5%.

We need a video comparing, CSWC vs OCSL

Thank you for discussing both BDC's. However, to me its a no brainer. Ares Capital offers less risk, with a better dividend. Within limits , I pay little attention to market price when investing for income. Whats more important is sustainability. You didn't discuss this for either BDC. When I invest in any income producing investment, as long as I receive the dividends , I care little about what a fickle market will pay for it, because it is not for sale. Ares has a payout ratio of 80 to 82%, which is a little high , but is sustainable. Since they have more holdings, one blowing up on them is less likely to effect the dividend they pay.. When a company cuts their dividend, you get kicked in the teeth twice. First the dividend cut, and the market price drops where you can't get out without a loss. Been there, and done that. So sustainability is very important to me.

Interest rates are predicted to fall in 2024. I don't know how much that will impact income dollars for Ares. But their clients should see some relief on operating costs. If Ares can maintain their dividend, they will be more competitive with fixed income, so their share price should increase.

Thanks for the video

What are your thoughts on NAV per share as a metric in determining if a BDC is under or over valued? OBDC right now is only $15.40 NAV per share meaning it's share price of $15.01 is undervalued. Am I correct on this?

You were talking way too slow! 😅

For now, i only own MAIN but so far so good :D

💎 Ares Capital Corporation (ARCC) 💎

These have done well in a high rate environment. I would like to know your thoughts on who may perform better in a changing environment where rates come down over the next two years?

The best dividend-bearing investment on the planet is QQQ. If you'd invested $10,000 in QQQ in 2015, you'd have $50,000 today, but only $33,000 in ARCC after reinvesting dividends. And volatility would have been about 1/3rd lower in QQQ than ARCC. ARCC's dividends are given to you in cash, requiring you to reinvest them manually, whereas most of QQQ's are automatically reinvested for you. If you want the cash that ARCC would have paid out in dividends, simply sell some shares.

Sounds like they will both tank when rates get cut.