Ares Capital (ARCC) concluded the recent trading session at $19.53, signifying a -2.59% move from its prior day's close.
The market's fear-based narrative is causing the BDC sector to sell off. Blue-chip Ares Capital is now trading at a discount to NAV. Ignore the panic and grow your income by buying premium income at a discount price.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Ares Capital (ARCC -1.05%) is what is known as a business development company (BDC). This is a unique corporation that is designed to pass income on to shareholders.
Ares Capital (ARCC) reached $19.1 at the closing of the latest trading day, reflecting a -2.9% change compared to its last close.
In the latest trading session, Ares Capital (ARCC) closed at $19.86, marking a -1.29% move from the previous day.
In the most recent trading session, Ares Capital (ARCC) closed at $20.13, indicating a -1.37% shift from the previous trading day.
Investors love dividend stocks, especially those with ultra-high yields, because they provide a substantial passive income stream and offer significant total return potential.
Ares Capital (ARCC) closed the most recent trading day at $20.94, moving 2.88% from the previous trading session.
Interest rates are one of the most important drivers of asset valuations, directly impacting discount rates and valuations. So, as the Fed lowers rates, yield compression occurs, making it harder to find safe, high-yield investments - now even above 8%. In the current environment, reliable yields of 6% to 8% are still achievable (at scale), while yields above 10% are mostly speculative.
I've decided to upgrade Ares Capital stock back to a "Buy" following my caution in July, which has proved to be timely. Despite near-term interest rate headwinds from expected Fed rate cuts, ARCC's strong balance sheet and spillover income support dividend sustainability into 2026. Management's disciplined capital allocation and robust Q2 backlog position ARCC well for future growth, mitigating the threat of imminent changes to its dividend strategy.
The disappointing August employment report showed that only 22,000 jobs were created.