Ares Capital Corporation Stock News

Ares Capital hit a record high NAV. ARCC realized significant gains from PIK investments. Despite fears, credit quality remains strong and defaults are well below average.

Credit spreads are flashing complacency as too much capital chases too few deals. This creates a tricky situation for the market. Personally, I see tight spreads not as safety but as distortion, as this has become an unusual market for private lenders. Ares Capital and Hercules Capital show how strong underwriting and balance sheet discipline still create value.

BDCs have been clearly out of favor this year. Yet, there are some clear pockets of opportunity, which have started to showcase a nice momentum - just as I outlined in my recent BDC strategic piece. It does not mean, however, that all deep-discount BDCs will recover.

Ares Capital's business is picking up. Energy Transfer is benefiting from the AI boom.

Ares Capital is seeing pressure on its net investment income, but saw a sequential improvement in its non-accrual percentage in Q3. ARCC's dividend coverage ratio in Q3 was 1.0X, which means the investment firm could potentially under-earn its dividend in the short term. The company's non-accrual ratio improved 0.2 PP Q/Q to 0.8%, based off of fair value.

This article is part of our monthly series where we highlight five large-cap, relatively safe, dividend-paying companies offering significant discounts to their historical norms. We go over our filtering process to select just five conservative DGI stocks from more than 7,500 companies that are traded on U.S. exchanges, including OTC networks. In addition to the primary list that yields 4%, we ...

Dividends matter. So do losses. Look at a couple of charts and call it a day. Most people don't want to go through all the history, but we can sum up over a decade in a few images. When we compare prices and book value over time, we can see that the huge dividends were not enough. They still are not enough.

Ares Capital offers a 9.3% dividend yield, fully covered by net investment income, despite recent share price declines. The recent dip in ARCC shares has been driven by sector-wide fears of a dividend cut and credit events from unrelated companies. ARCC reported healthy third-quarter results, with total investment income beating consensus and net asset value growing by 12 cents versus its year-...