Ares Capital Corporation Stock News

NEW YORK--(BUSINESS WIRE)--Ares Capital Corporation (Nasdaq: ARCC) announced that it has priced an underwritten public offering of $650 million in aggregate principal amount of 5.100% notes due 2031. The notes will mature on January 15, 2031 and may be redeemed in whole or in part at Ares Capital's option at any time at par plus a “make-whole” premium, if applicable. BofA Securities, Inc., J.P....

In Q2, most BDCs reported negative earnings growth. Given where interest rates are heading, there will likely be the same situation going forward as well. Since the sector average base dividend coverage is only 102%, it does not bode well for BDC dividends.

Lower base rates are headwinds for most BDCs, but Fidus Investment and Capital Southwest stand out as likely to avoid dividend cuts. FDUS impresses with a low-leverage balance sheet, strong liquidity, robust base dividend coverage, and significant equity stakes that provide income flexibility. CSWC benefits from improved credit quality, strong equity investment gains, high undistributed taxable...

David Alton Clark, The Winter Warrior Investor, thinks the market is a little bit toppy with stretched valuations. Focusing on high-conviction positions, trimming the number of holdings, and reallocating gains from growth into income-producing assets for capital preservation.

Ares Capital maintains ultra-conservative leverage, resulting in stable but light earnings and limited dividend growth potential. Management expresses comfort with low leverage, prioritizing financial flexibility over maximizing returns, despite investor questions about missed opportunities. Portfolio quality remains strong, with low non-accruals and ample liquidity, but risks from lower intere...

Warren Buffett remains one of the world's most prominent investors, renowned for his long-term buy-and-hold strategies and extensive portfolio of public and private holdings.

Steven Bavaria, from Inside the Income Factory, discusses credit assets like high-yield bonds, senior loans, and BDCs for stable, high-yield income, favoring closed-end funds for their resilience and discounts. Expense ratios for BDC ETFs like PBDC appear high due to accounting rules, but actual fund expenses are low—professional management adds only about 0.4%.

I believe the current administration will prioritize broad growth over fighting inflation, creating a rare, bullish environment for certain stocks. Economic indicators show growth is bottoming, inflation remains sticky, and recent policies set the stage for cyclical opportunities to thrive. I see a perfect setup for select companies to deliver strong income and total returns, and I'm closely mo...