Ares Capital (ARCC) came out with quarterly earnings of $0.5 per share, missing the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.61 per share a year ago.
These dividend stocks have very high yields and can surge as the economic cycle changes.
Ares Capital (ARCC) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Beyond analysts' top-and-bottom-line estimates for Ares Capital (ARCC), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended June 2025.
The value proposition for BDCs is high dividends with steady growth, but most BDCs fail to deliver on this. In the article, I elaborate on two BDC gems that present durable income and value offerings. Personally, I'm long both of them in my income-focused portfolio.
ARCC's Q2 results will likely show lower earnings and sales, with elevated costs and muted investment income weighing on performance.
We discuss the single most important metric to look for in stocks that you plan to buy and hold for the long term. We share two opportunities that yield ~7%, which score very high on this metric. We detail other reasons why these are great big dividend machines to buy and hold for the long term as well.
In the closing of the recent trading day, Ares Capital (ARCC) stood at $23.06, denoting a +1.36% move from the preceding trading day.
I maintain a bullish 'Buy' rating on Ares Capital due to its market leadership, diversified offerings, and resilience amid improving macroeconomic conditions. Q1 2025 results show revenue growth, controlled expenses, and improving margins, despite a one-off net income dip from debt extinguishment. ARCC's diversified portfolio, strong risk management, and stable, high dividend yield make it an attractive long-term investment.
ARCC is a leading BDC, but April's volatility and looming trade uncertainties warrant vigilance as we approach key trade negotiation deadlines. Core earnings are still expected to cover dividends, with management's spillover income and low leverage providing stability and investment firepower to deploy. Yet, ARCC's premium valuation, and potential Fed rate cuts could limit further upside, lowering its risk/reward appeal markedly.
ARCC has one of the most impressive track records of any BDC out there. However, it is getting increasingly risky. I detail why I am downgrading it to Sell.
Ares Capital (ARCC) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.