5 Best BDC Stocks To Buy

1. Ares Management Corporation (NYSE:ARES)

Number of Hedge Fund Holders: 29

Ares Management Corporation (NYSE:ARES) is an American business development company that operates in credit, private equity, and real estate markets. The company is one of the best stocks on our list as it has raised its dividends consistently for the past five years. It currently offers a quarterly dividend of $0.61 per share and has a dividend yield of 3.49%, as of December 15.

At the end of Q3 2022, 29 hedge funds tracked by Insider Monkey owned stakes in Ares Management Corporation (NYSE:ARES), compared with 30 in the previous quarter. These stakes are collectively worth over $650.4 million.

Vulcan Value Partners mentioned Ares Management Corporation (NYSE:ARES) in its Q3 2022 investor letter. Here is what the firm has to say:

“Ares Management Corporation (NYSE:ARES), is a global, diversified alternative asset manager with a focus on credit and debt funds. Among alternative asset managers, Ares has a leading market share in credit products. These credit products generate fee-related revenue, which we believe translates to stable earnings power. Ares is benefiting from increasing investor demand for private credit assets. According to industry data, the gap between current and target allocations for institutions is wider for private credit than for private equity, implying that private credit has substantial opportunity for growth. Ares has generated strong historical returns in private credit and demand from private equity sponsors, who are Ares’s primary customers, for private credit funding has increased. This has resulted in market share gains for private credit against the banks and public markets, and we believe that trend will continue. We think that scale and relationships are Ares’ most important competitive advantages and, to the extent these advantages lead to strong returns, this should lead to continued growth in AUM. The alternative asset management space is very competitive, but we believe that Ares is well positioned.”

You can also take a look at 12 Defensive Healthcare Dividend Stocks To Buy and 10 Best December Dividend Stocks to Buy

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