Ares Capital Corporation Stock News

When investing for 10%+ BDC yields, investors have to pay extra attention to leverage, dividend coverage, and portfolio quality. Going into Q3, 2024 earnings season, my expectation was that we would see elevated volatility levels and falling NII results. While the actual results have been mostly positive for high-quality BDCs (and even for some speculative picks), many risks remain open.

Investment activity in October focused on Business Development Companies, with $1,300 added to the market. Adjusted dividend income in October of $789, up 25% Y/Y and up 11% sequentially. Main picks included Blackstone Secured Lending, Goldman Sachs BDC, and Midcap Financial Investment Corporation.

Ares Capital improved its high balance sheet quality in Q3 and supports its dividend with NII, making it a reliable high-yield investment. The BDC's portfolio grew with $3.9B in gross commitments, showing 145% Y/Y growth. The non-accrual percentage dropped Q/Q to just 0.6% of investments (FV).

Ares Capital Corp and Blue Owl Capital Corp are both high-quality, high-yield BDCs. I compare them side-by-side in this article. I share why only one is a buy right now.

This Ultra-High-Yield Dividend Stock in Warren Buffett's Secret Portfolio Is a No-Brainer Buy

Closed-end funds are special income vehicles, with many positive aspects and just as many weaknesses that take time to be properly understood and evaluated. I discovered their existence about ten years ago, and over time, I became convinced of their worth by developing a personal method of selection based mainly on NAV performance. This is an analytical, data-driven approach which I then extend...

Ares Capital delivered a solid 3.3% total NAV return, trades at a 9.2% dividend yield, and has a core earnings yield of 11.1%. The NAV rose to a record $19.77, marking the seventh consecutive quarterly rise, driven by retained income and unrealized appreciation. ARCC's portfolio is highly diversified with 535 companies, focusing on larger firms, and recently acquiring Riverside Credit Solutions...

TipRanks' analyst ranking service pinpoints Wall Street's best-performing stocks, including IBM and Ares Capital.