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.

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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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Ares Capital continues its robust recovery from its March selloff. Dip buyers who braved the impact have been rewarded. Economists are turning less gloomy about macroeconomic conditions. The US economy has proved to be incredibly robust. While ARCC has moved well past its peak pessimism, its valuation is still attractive, suggesting buyers have not returned in full force.

Ares Capital: A High Yield Opportunity Priced At A Bargain

Part 1 of this article compares ARCC's recent quarterly change in NAV, quarterly and trailing 12-month economic return, NII, and current valuation to 14 business development company peers. Part 1 also performs a comparative analysis between each company's investment portfolio as of 12/31/2022 and 3/31/2023. This includes an updated percentage of investments on non-accrual status. I also provide a list of the other BDC stocks I currently believe are undervalued (a buy recommendation), overvalued (a sell recommendation), and appropriately valued (a hold recommendation).

Ares Capital's NAV, Valuation, And Dividend Versus 14 BDC Peers - Part 1 (Includes Recommendation For All Covered Peers As Of 6/5/2023)

VanEck Vectors BDC Income ETF

Blackstone Group

Blackstone Secured Lending Fund

Credit Suisse

SPDR S&P Bank ETF

SPDR S&P Regional Banking ETF

Vanguard Real Estate ETF

BDCs offer passive income investors well-diversified portfolios and large dividends along with several other attractive benefits. A trillion-dollar manager recently made some very bullish comments about BDCs and explained why they are investing so heavily in them. We share some of our top BDC picks that offer sustainable 10%+ yields.

Trillion Dollar Manager Says Buy BDCs: Our Top 10%+ Yielding Picks

Golub Capital BDC

Vitesse Energy Inc

Buffett owns two high-yielding business development company stocks through a Berkshire Hathaway subsidiary. He also added a high-yielding oil stock to Berkshire's portfolio in Q1.

Believe It or Not, Warren Buffett Owns 3 Dividend Stocks With Yields of Over 8%

Ares Capital Corporation offers a 10% yield and is a suitable choice for investors seeking income-producing positions in their portfolios. The company has six attractive traits, including management alignment with shareholders, modest balance sheet leverage, and a diversified asset portfolio. Cost of leverage is near rock bottom, and the portfolio largely consists of conservative senior secured loans.

Ares Capital: Why Its 10% Dividend Belongs In Any Income Portfolio

TCG BDC

Capital Southwest

Oaktree Specialty Lending

We take a look at the action in business development companies through the fourth week of May and highlight some of the key themes we are watching. BDCs were up slightly this week, with a return dispersion of around 8%. Lots of BDCs are asking shareholders to approve their capacity to issue shares below the NAV.

BDC Weekly Review: Why Are BDCs Asking To Issue Shares Below NAV?

Enterprise Products Partners

Verizon

Ares Capital's strong business prospects should instill confidence in its super-high dividend. Enterprise Products Partners has increased its distribution for 24 consecutive years.

3 Ultra-High-Yield Dividend Stocks You Can Buy in June Without Any Hesitation

Medical Properties Trust

PennantPark Floating Rate Capital

Ares Capital is America's largest business development company and now offers a big 10.2% dividend yield. Net interest income at PennantPark Floating Rate Capital is surging in response to the Federal Reserve's hawkish monetary policy.

3 Top Dividend Stocks With Yields Above 10% Right Now

Brookfield Renewable Partners

Ares Capital could be the best ultra-high-yield dividend stock on the market. Brookfield Renewable offers an attractive dividend, plus exceptional growth prospects.

Buying These 3 High-Yield Dividend Stocks Could Be Brilliant Moves

Barings BDC Inc

PennantPark Investment

Sixth Street Specialty Lending

We take a look at the action in business development companies through the third week of May and highlight some of the key themes we are watching. BDCs had a good week with a 2.5% total return. A rise in net income over Q1 has supported the sector in a difficult market.

BDC Weekly Review: Fees - A Potential Hedge For Lower Interest Income

Ares Capital (ARCC) reported earnings 30 days ago. What's next for the stock?

Ares Capital (ARCC) Up 5.3% Since Last Earnings Report: Can It Continue?

Apple

AbbVie

AGNC Investment

AGNC Investment Corp - FXDFR PRF PERPETUAL USD 25 - Ser D 1/1000th int

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Antero Midstream Partners

Apple Hospitality REIT

Apollo Commercial Real Estate Finance

Broadcom

Boeing

Alibaba

Bank of America

BASF SE

B&G Foods

Bank of Montreal

Bayerische Motoren Werke AG

Bank of Nova Scotia

Markets are racing higher as the earnings season turned out much better than expected. Sector rotation into tech stocks has led to a surge in big-tech with Nvidia clearly leading the pack.

My Dividend Stock Portfolio: New April Dividend Record - 99 Holdings With 21 Buys

AllianceBernstein Hld

Arbor Realty Trust

American Tower

Alexandria Real Estate Equities

BHP Billiton

British American Tobacco

CVS Health

Fifth Third Bancorp

Hasbro

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Pfizer

Philip Morris

Vici Properties

March-April, 2022, UBS, Kiplinger, and Barron's analysts/reporters listed five-sets of stocks sorted=as: “Inflation-Busters.” Those five articles revealed 47 equities, with 42 paying dividends. This over one-year-old list continues to beat-back rampant inflation.

Of 11 Ideal Inflation-Busting May Dividend Dogs, Buy 3

AT&T

Now that AT&T is just a telecom business again, it's attracting income investors. Medical Properties Trust is a real estate investment trust that owns hundreds of hospitals.

Want $3,000 in Annual Dividend Income? Invest $31,000 in These 3 High-Yield Stocks

W. P. Carey

Ares Capital is a business development company with a 3.7% dividend yield. W. P. Carey is a real estate investment trust with a 5.9% yield.

Before You Buy Ares Capital, Here's a Financial Stock I'd Buy First

Viatris

Ares Capital just might be the best ultra-high-yield dividend stock on the market right now. Verizon's dividend is on firmer ground than its Q1 results indicate.

3 High-Yield Dividend Stocks You Probably Didn't Know Warren Buffett Owns

High-yield investments often come with elevated risks and minimal growth, leading to poor long-term returns. Business development companies, or BDCs, mortgage REITs, or mREITs, and oil and gas midstream limited partnerships aka MLPs are common sources of high yields but underperform the S&P 500 Index and the Vanguard High-Yield ETF.

Ares Capital: The 10% Marvel That Dominates High-Yield Investing

Healthpeak Properties Inc

CVS Health is famous for its retail pharmacies, but it's the company's growing health benefits management business that makes it a great stock for retired investors. Physicians Realty Trust is a real estate investment trust that owns lots of medical office buildings.

3 Exceptional Dividend Stocks That Retirees Should Love

Investors must keep solid dividend-yielding stocks like Ares Capital (ARCC) on the radar amid the challenging macroeconomic environment.

Ares Capital (ARCC) Stock in Focus on 10.5% Dividend Yield

Horizon Technology Finance

Hercules Capital

Banking and Real Estate weaknesses are a catalyst for investors to consider high-yielding Business Development Companies (BDCs). BDCs with strong fundamentals can be an excellent opportunity to compound income over the long haul.

Earn 11% Yield: 3 BDC Stocks To Buy According To SA Quant And Philip Mause

Ares Capital Corporation is the world's largest publicly traded business development company, and it offers a 10.5% dividend yield right now. PennantPark Floating Rate Capital is a business development company that relies heavily on variable-interest debt instruments which deliver much higher rates of return now than they did a year ago.

Want $5,000 in Annual Dividend Income? Invest $43,000 in These 3 High-Yield Stocks

The time to invest for income has never been better. As earnings continue to be released, income investments continue to outperform expectations.

2 Magnificent Dividend Stocks That Dominated Earnings

Easterly Government Properties

Devon Energy

Enbridge

These seven include stocks from the energy, real estate, financial, and telecommunications sectors. They could generate substantial retirement income thanks to their ultra-high dividend yields.

Want Over $45,000 in Retirement Income? Invest $500,000 in These 7 High-Yield Dividend Stocks

We take a look at the action in business development companies through the last week of April and highlight some of the key themes we are watching. BDCs had a good week as Treasuries and stocks both rallied while early earnings reports were good.

BDC Weekly Review: We Are Moving Past The Goldilocks Phase

Ares Capital's ultra-high dividend yield appears to be sustainable. The company's business prospects are strong.

Why Buying $1,000 of This 10.6%-Yielding Dividend Stock Could Be a Brilliant Move

News for Ares Capital ETF (ARCC)