Ares Capital Maintains 9.6% Dividend Yield for 16 Consecutive Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Yahoo Finance
- Stable Dividend Record: Ares Capital has maintained a stable or growing dividend for 16 consecutive years, currently boasting a 9.6% yield, which reflects its robust performance in investing in middle-market companies and enhances investor confidence.
- Investment Strategy: In the third quarter, the company committed to investing $3.9 billion across 35 new and 45 existing portfolio companies, successfully offsetting $2.6 billion in exited investments, ensuring the sustainability of its high-yield dividend.
- Industry Comparison: While the S&P 500's dividend yield has dropped to a historical low of 1.1%, Ares Capital's high yield distinguishes it among peers, attracting income-seeking investors.
- Future Outlook: Ares Capital's strong financial profile and ongoing investment strategy lay the groundwork for future dividend growth, likely continuing to draw increased investor interest.
ARCC
$20.2+Infinity%1D
Analyst Views on ARCC
Wall Street analysts forecast ARCC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARCC is 22.44 USD with a low forecast of 21.00 USD and a high forecast of 24.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 20.000
Low
21.00
Averages
22.44
High
24.00
Current: 20.000
Low
21.00
Averages
22.44
High
24.00
About ARCC
Ares Capital Corporation is a specialty finance company focused on providing direct loans and other investments in private middle market companies in the United States. The Company invests primarily in first lien senior secured loans (including unitranche loans, which are loans that combine both senior and subordinated debt, generally in a first lien position), and second lien senior secured loans. In addition to senior secured loans, it also invests in subordinated debt, which in some cases includes an equity component, and preferred equity. It also may invest up to 30% of its portfolio in non-qualifying assets. Its investment activities are focused on industries, such as software and services, health care services, commercial and professional services, financial services, commercial and professional services, insurance services, energy, food and beverage and others. The Company is externally managed by Ares Capital Management LLC (investment adviser).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
