Why I Trust ARCC's Nearly 10%-Yielding Dividend and Wouldn't Touch ACRE's Double-Digit Payout
These high-yielding dividend stocks have very different track records.
Overview
I own shares of Ares Capital (NASDAQ:ARCC) for its lucrative dividend (9.9% current yield). I trust that payout, which is why I have been adding to my position over the past few months to boost my passive income. That trust led me to consider its sibling, Ares Commercial Real Estate Corporation (NYSE:ACRE), which currently yields an even more enticing 13.7%. However, after taking a closer look at ACRE's financial profile, I wouldn't touch it for dividend income.
Here's why I think one of these Ares Management (NYSE:ARES) affiliates is worth owning for dividend income, and the other is a potential yield trap.
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Originally published at www.fool.com.
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