Could $5,000 in Ares Capital Generate $500 a Year in Passive Income?

Ares Capital (ARCC) currently yields just over 10%, which would generate approximately $500 annually on a $5,000 investment. While the BDC has maintained a stable or growing dividend for over 16 consecutive years, recent concerns exist as core earnings fell short of the quarterly dividend in Q1. However, the company's realized gains, spillover income cushion, modest leverage, and stable interest rate environment suggest the dividend remains sustainable.