Ares Capital

Ares Capital Corp. is a closed-end, non-diversified management investment company. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. The company was founded on April 1, 2004 and is headquartered in New York, NY.

Earnings data Q1 2021

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Earnings data Q4 2024

Ares Capital reports robust Q2 earnings, poised for growth

Ares Capital's Q2 2024 earnings call highlighted strong financial performance, robust deal flow, and a commitment to shareholder returns through dividends. The company's proactive approach to accessing funding markets and maintaining a strong credit profile positions it well for future opportunities and growth.

Ares Capital reports record earnings and growth amidst market challenges

Ares Capital delivered strong financial performance in Q3 2024, with robust core earnings and record NAV per share. Despite facing potential challenges in market dynamics, the company remains well-positioned for growth and success.

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One of the largest mistakes that investors make is focusing on historical dividend coverage instead of projected dividend coverage. This article discusses historical and projected dividend coverage for ARCC, which is the largest BDC currently yielding 10% before supplemental dividends. Below I discuss many of the drivers used for projecting dividend coverage followed by my base, best, and worst-case projections for ARCC.

Ares Capital: Assessing Dividend Coverage For Its 10% Yield

BlackRock Capital Investment

ARCC and BKCC both offer investors well-covered 10%+ dividend yields. ARCC has an extremely impressive track record and some of the best management in the BDC sector. However, there are three compelling reasons why BKCC may outperform ARCC moving forward.

Better 10%+ Yield: 3 Reasons Why BlackRock Capital May Outperform Ares Capital

With Ares Capital about to kick off BDC earnings season (Tues pre-market), we share updated comparative data on 40+ big-yield BDCs. After considering current market conditions (rates, credit spreads, fear-greed), we consider Ares' growing non-accrual loans, slowing deal flow and the double-edge sword of rising rates (plus dividend safety and valuation). We briefly consider two Ares alternatives (Blue Owl Capital and Hercules Capital), and then conclude with our strong opinion about investing in select big-yield BDCs, including the ones we own.

Ares Capital: 40+ Big-Yield BDCs Compared (Earnings Season Edition)

RLJ Lodging Trust

Buffett Says Make Money In Your Sleep, +8% Yields For A Retirement Dream

Golub Capital BDC

KeyCorp

Kinder Morgan

AT&T

Vitesse Energy Inc

Verizon

All of Buffett's ultra-high-yielders are in the communications, energy, or financial services sectors. Their dividend yields range from 6.5% to nearly 10%.

Every Ultra-High-Yield Dividend Stock Warren Buffett Owns, Ranked From Best to Worst

AllianceBernstein Hld

Arbor Realty Trust

BHP Billiton

British American Tobacco

Fifth Third Bancorp

Navient

Pfizer

Vici Properties

March-April, 2022, UBS, Kiplinger, and Barron's analysts/reporters listed five sets of stocks as: “Inflation Busters.” Those five articles revealed 48 equities, with 43 paying dividends. This over one-year-old list continues to beat-back inflation.

10 Buyable Inflation-Busting July Dividend Stocks

This article discusses portfolio credit quality for Ares Capital which is the largest BDC currently yielding 10%. Credit quality is the most important consideration when selecting which BDCs are "buy and hold" as well as setting target prices. The following is a quick discussion of specific portfolio companies including the amount of "watch list" investments, non-accrual investments, and the potential impact on NAV per share.

Ares Capital 10% Yield: Need To Check Credit Quality

Blue-chip stocks like Microsoft, Amazon, and Apple are reliable for long-term investments, but high-yielding blue chips are recommended for immediate financial needs. Ares Capital and British American Tobacco are two high-yielding blue-chip stocks that offer strong total return potential and attractive dividend yields. Despite potential risks, both companies have durable business models and low valuations, making them good investment options for value and income investors.

2 Blue Chips To Buy And Hold, Averaging 9% Yield

The BDC sector is not in the most upbeat shape, but Ares Capital is well positioned. Investment activity is slowing down as evidenced by falling gross funding and gross commitment data along with management commentary indicating a dearth of investment opportunities. But rising rates are a more powerful tailwind for Ares Capital's floating-rate-dominated investment portfolio. Further rate hikes are likely to provide further propulsion, increasing investment yields.

Ares Capital: Rising Rates Make Up For Activity Slowdown (Rating Upgrade)

Devon Energy

Energy Transfer LP Unit

Medical Properties Trust

Pioneer Natural Resources

Three of these stocks offer yields of over 10% with the other two not far behind. All of the dividends appear to be relatively safe, although oil prices could be a factor with two of them.

Want $10,000 in Annual Dividend Income? Invest $94,000 in These 5 High-Yield Stocks.

NEW YORK--(BUSINESS WIRE)--Ares Capital Corporation (“Ares Capital”) (NASDAQ: ARCC) announced today that it will report earnings for the second quarter ended June 30, 2023 on Tuesday, July 25, 2023 prior to the opening of the Nasdaq Global Select Market. Ares Capital invites all interested persons to attend its webcast/conference call at 11:00 a.m. (Eastern Time) on the same day to discuss its second quarter ended June 30, 2023 financial results. All interested parties are invited to participat.

Ares Capital Corporation Schedules Earnings Release for the Second Quarter Ended June 30, 2023

Banco de Chile

Eni SpA Sponsored ADR

Ecopetrol

Icahn Enterprises

Petroleo Brasileiro

Stellantis N.V. 

Telefonica SA

Vodafone Group

Western Gas Partners

Dogsofthedow.com recently published this list of 50 large-cap high-dividend stocks as of 6/29/23. This list targeted investors who “don't want to simply focus on a high dividend yield only to discover that the stock price has plunged or that the corporation has gone belly-up”. Investors reduce volatility/risk by limiting high-dividend searches to large-well-established companies. For example, net gain estimates (as-of-6/29/23) for PXD, WES, TEF, DVN, T, ET, STLA, PBR, BTI, & topped-by VOD, ranged 31.24%-56.04%.

July's Top 50 Large-Cap High-Yield Dividend Stocks

Main Street Capital

Owl Rock Capital Corp

Fearfully ignored business development companies, or BDCs, continue to benefit from the hawkish Fed. I am hungry to build my income stream. Fat yield and blue chip present a tasty combination I can't resist.

Insider Alert: 10% Yield And Manager Loading Up

Enbridge

FS KKR Capital Corp

Goldman Sachs BDC

Dividend Harvesting Portfolio Week 121: $12,100 Allocated, $1032.11 In Projected Dividends

Oaktree Specialty Lending

Growing 11+% Yields For Retirement: Ares Capital And Oaktree Specialty Lending

Investing in 10%+ yielding blue chip dividend growth stocks can provide a sustainable and attractive passive income stream and lead to long-term outperformance. While such stocks can be difficult to find, we are finding several in the current environment. We discuss two 10%+ yielding stocks that have investment grade balance sheets, strong fundamentals, and are poised to deliver long-term outperformance along with continued dividend growth.

Two 10%+ Yielding Dividend Growers All Investors Should Own

Digital Realty Trust

Ares Capital and Digital Realty Trust are leaders within their respective industries. The two companies' payouts are each arguably well-supported.

Want $500 in Annual Dividend Income? Invest $6,700 in These 2 High-Yielding Stocks

With An Average Dividend Of 9%, These 2 Stocks Beat The Market For Over A Decade

Capital Southwest

Why Pick One When You Can Own Both? Capital Southwest And Ares Capital

Part 2 of this article compares Ares Capital's recent dividend per share rates, yield percentages, and several other highly detailed (and useful) dividend sustainability metrics to 14 other BDC peers. This includes a comparative analysis of Ares Capital's cumulative undistributed taxable income ratio, percentage of floating-rate debt investments, recent weighted average annualized yield, and weighted average interest rate on outstanding borrowings. Ares Capital's dividend sustainability remains one of the highest in the sector. When comparing/analyzing all metrics (including additional metrics not mentioned), Ares Capital is currently deemed to be undervalued (BUY).

Ares Capital's Sector Comparative Metrics - Part 2 (Includes Q3 + Q4 2023 Dividend Projection)

Ares Capital (ARCC) is expected to continue witnessing growth in total investment income, driven by the rise in demand for customized financing. However, rising costs pose a concern.

Ares Capital's (ARCC) Investment Income Rises Amid Cost Woes

Crown Castle International

Viatris

Warren Buffett owns five stocks with dividend yields of 4.9% or higher. Four of the five belong to the portfolio of one of Berkshire Hathaway's subsidiaries.

Warren Buffett Owns These 5 High-Yield Dividend Stocks. Should You?

PennantPark Floating Rate Capital

Medical Properties Trust is a real estate investment trust that owns hundreds of hospitals in the U.S. and abroad. Ares Capital is a business development company with a 10.09% yield.

Want $3,000 in Annual Dividend Income? Invest $26,500 in These 3 Stocks.

Ally Financial

Ares Capital is a business development company that offers a double-digit percentage yield right now. Ally Financial is an all-digital bank that could raise its dividend payout by leaps and bounds.

3 High-Yield Dividend Stocks to Buy Now and Hold for the Next Decade

American Tower

Alexandria Real Estate Equities

ConocoPhillips

CVS Health

Extra Space Storage

Hasbro

NexPoint Residential Trust

Philip Morris

March-April 2022, UBS, Kiplinger, and Barron's analysts/reporters listed five sets of stocks sorted as “Inflation Busters.” Those five-articles revealed 48 equities, with 43 paying-dividends. This over one-year-old list continues to beat-back new-strains-of-inflation.

11 Buyable Inflation-Busting June Dividend Stocks

News for Ares Capital ETF (ARCC)