Ares Capital and FS KKR Capital are both business development corporations (BDCs) that provide funding to middle-market companies in the U.S. These companies offer high dividend yields due to their regulated investment company status. Ares Capital has a longer track record and a portfolio focused on software, services, and healthcare, while FS KKR has a higher dividend yield and a portfolio concentrated in software, capital goods, and healthcare. Ares Capital has a larger percentage of first lien senior secured loans in its portfolio, while FS KKR trades at a discount to its net asset value. Overall, FS KKR has a slight edge due to its higher dividend yield and improving investment portfolio.
Berkshire Hathaway's third-quarter earnings report showed flat reported revenue of $63.4 billion, with year-to-date revenue increasing to $309.2 billion. Operating earnings, excluding investment gains/losses, increased 40.6% to $10.8 billion. Book value per share declined 2.5% to $363,413, and the company's cash balances reached a record $157.2 billion. CEO Warren Buffett has expressed difficulty in finding viable investment opportunities.
Ares Capital (ARCC) and Oaktree Specialty Lending (OCSL) are two attractive defensive double-digit yielding Business Development Companies (BDCs) that offer potential for retirement income. Both companies have well-diversified portfolios of senior-secured loans and strong underwriting performance. They are positioned to benefit from rising interest rates and have investment grade credit ratings with solid balance sheets. ARCC has a history of dividend growth and benefits from its large scale and relationship with Ares Management, while OCSL has shown strong performance since being managed by Oaktree. Both dividends appear safe and have the potential for further growth. With attractive valuations and the potential for total return generation, these stocks are suitable for investors, particularly retirees looking to boost their passive income stream.
Cathie Wood, CEO of ARK Invest, believes that Bitcoin's behavior during the recent banking crisis will attract more institutions to invest in the cryptocurrency. Oliver Linch, CEO of Bittrex, notes that many big banks have already bought into crypto as an investment product. However, there is still a divide between traditional financial institutions and crypto firms, causing headwinds in institutional adoption. Wood predicts that institutional investors allocating between 2.5-6.5% of their portfolio into BTC will push the price towards $1.5 million by 2030.
