Ares Capital, a business development company (BDC), is backed by Ares Management and offers a high dividend yield. However, its loans to smaller companies come with a steep 10.9% interest rate, posing risks during economic downturns. The company survived the 2007-2009 recession and may cut its dividend in the next five years if faced with another recession. While Ares Capital is well-respected and resilient, its volatile dividend history may not suit all investors. Consider the risks before investing in this BDC for long-term dividend consistency. The Motley Fool Stock Advisor did not include Ares Capital in their top 10 stock picks for potential high returns.

Read more at Nasdaq, Inc.: Where Will Ares Capital Be in 5 Years?