5 Best Financial Stocks that Pay Dividends

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1. Ares Capital Corporation (NASDAQ: ARCC)

Number of Hedge Fund Holders: 15
Dividend Yield: 7.95%

Ares Capital Corporation (NASDAQ: ARCC), a business development company, ranks 1st on our list of the best financial stocks that pay dividends. The company focuses on acquisition, recapitalization, mezzanine debt, and related areas.

JPMorgan’s analyst Richard Shane holds a Neutral rating on Ares Capital Corporation (NASDAQ: ARCC) shares and has raised his price target on the stock this March from $18 to $19.

In the first quarter of 2021, Ares Capital Corporation (NASDAQ: ARCC) had an NII of $0.33, missing estimates by $0.09. The company’s TII was $390 million, up 5.69% year over year and beating estimates by $4.15 million. Ares Capital Corporation (NASDAQ: ARCC) has also gained 15.04% in the past 6 months and 21.87% year to date.

By the end of the first quarter of 2021, 15 hedge funds out of the 866 tracked by Insider Monkey held stakes in Ares Capital Corporation (NASDAQ: ARCC) worth roughly $84 million. This is compared to 15 hedge funds in the previous quarter with a total stake value of approximately $102 million.

You can also take a look at 10 Best Finance Stocks To Buy Now and 10 Best Consumer Finance Stocks To Buy Now.

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