If you're searching for passive income from your investments, dividend stocks can help deliver the goods. Dividend-paying companies share a portion of their profits with shareholders, typically quarterly, although some pay out monthly dividends.

Ares Capital (ARCC) delivered a solid 2.9% NAV return in Q2, maintaining a stable dividend and strong portfolio credit metrics. Portfolio quality remains solid, though non-accruals and internal ratings worsened slightly; management remains cautious on leverage. Given its elevated valuation, we would wait for a pullback relative to the sector before adding a position.

Ares Capital is one of the very best BDCs in history. However, ARCC faces two big, growing headwinds. ARCC's dividend coverage is thin, prompting us to take a deeper look at its sustainability.

Despite a tough week for markets, I remain bullish and continue to buy dips, expecting a multi-year bull market fueled by AI and robotics. My Dividend Harvesting Portfolio's diversification helped mitigate losses, and forward dividend income continues to trend higher, hitting record monthly levels. Recent additions include NEOS Bitcoin High Income ETF, Ares Capital, and Flagstar Financial, all chosen for their yield and value in a lower-rate environment.

Should you buy a weak company at a wonderful price or a wonderful company at a fair price? We look at ARCC to discuss. BDCs are heading into rougher seas, so where should you get your best income? I find wonderful income sources all over the market. Let's journey together.

Ares Capital's Q2 showed mixed results, with declining net investment income but stable fundamentals and a strong yield above 8%. Tighter dividend coverage and increased non-accruals are concerns, but ample liquidity and spillover income support near-term dividend safety. NAV grew slightly and the balance sheet remains solid, but macro headwinds limit upside and may pressure future dividends.

Relatively higher rates and lingering tariff-related headwinds will affect demand for personalized financing. Yet, Zacks SBIC & Commercial Finance industry players like ARCC, MAIN and HTGC are worth a look.

According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade, business, or investment in which the individual does not materially participate.

ARCC's Q2 earnings slip 18% y/y as investment income declines and rising fees push total expenses up 11%.

Political drama between Trump and Powell over interest rates is entertaining, but I avoid letting it influence my investment decisions. The Income Method focuses on building a diversified income portfolio that generates reliable cash flow regardless of political or monetary policy shifts. Use your portfolio to create a lasting legacy of income, like great leaders aspiring to leave behind a powerful legacy.