Investors who are looking for growth in their portfolio may be captivated by technology stocks, especially given all of the recent hoopla around artificial intelligence (AI). But portfolio construction requires balance, and one of the pillars of a well-diversified portfolio is dividend stocks.

Business development companies (BDCs) can be a great source of dividend income, in part because they are required to pay out at least 90% of their taxable income each year as dividends.

One leading BDC that has consistently outperformed the S 500 is Ares Capital (NASDAQ: ARCC). With the shares trading at about $20, its dividend yield is now 9.5%, making this an opportune time to open a position and set yourself up to reap the passive income rewards.

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Source Fool.com