Ares Capital Corporation (ARCC)
Tactical BDCs For Sizable Income And Alpha: 1 To Buy, 1 To Avoid
Since BDCs carry in general above-average risks, it makes sense to prioritize defensive and prudently structured picks. Yet, if the price is right, higher risk BDCs could also become enticing investments. In this article, I discuss two tactical or higher risk BDCs - one of which is a buy, and the other one, in my view, should be avoided.
Is Ares Capital Stock Worth Buying to Earn 8.25% Dividend Yield?
ARCC's attractive dividend yield of 8.25% is impressive. Is the stock worth betting on to earn this dividend yield?
I'm Buying Up To 8% Yield For Resilient Cash Flow
Enbridge benefits from toll road-like cash flows, long-term contracts, steady distributable cash flow growth, and a reliable dividend, supported by a BBB+ credit rating. Ares Capital leverages its scale and industry expertise, generating strong returns through a well-diversified portfolio of senior loans and benefiting from rising M&A activity. Both companies maintain strong balance sheets with investment-grade credit ratings and conservative payout ratios, providing high-quality resilient cash flow in a volatile market.
Top Wall Street analysts are bullish on these dividend stocks
TipRanks' analyst ranking service highlights three dividend-paying stocks, including McDonald's and Ares Capital.
3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold Forever
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Ares Capital: Wait For A Drop (Rating Downgrade)
Ares Capital achieved its highest portfolio value in Q4'24, driven by strong net investment income and robust demand for new net originations. Despite a slight increase in the non-accrual percentage, Ares Capital maintained excellent balance sheet quality and delivered a well-supported dividend with a 1.15X coverage ratio. The BDC trades at a price-to-NAV ratio of 1.18X, making shares slightly overvalued, in my opinion.
Ares Capital Corporation (ARCC) is Attracting Investor Attention: Here is What You Should Know
Recently, Zacks.com users have been paying close attention to Ares Capital (ARCC). This makes it worthwhile to examine what the stock has in store.
Lower Levered Ares Capital Still Generates More Than Enough
Ares Capital consistently outperforms its dividend payouts, maintaining a stable $0.48 per quarter despite lower leverage and fluctuating Fed rates. Management remains cautious about increasing leverage and dividends, focusing on maintaining strong earnings and downside protection amid potential possible recession risks. The company reviewed $650 billion in opportunities, committing $5 billion, showcasing its competitive edge in various market segments.
Ares Capital: Buy The Dip
Ares Capital's strong portfolio performance and consistent dividend coverage, despite a rise in the non-accrual ratio, affirm its bullish investment case. The BDC's originations surged 3% in Q4, driven by robust demand for capital, with a notable shift towards higher-quality First Lien Senior Secured Loans. Despite higher operating expenses and non-accruals, ARCC's net investment income and core EPS comfortably covered its dividend, maintaining an 87% payout ratio.
Munger Says Invest With A Long-Term Perspective, 2 Dividends To Buy And Hold Forever
Charlie Munger's investment philosophy emphasizes focusing on long-term investments and ignoring short-term market fluctuations or even elevated prices. Given that the equity markets are aggressively valued almost across the board, a legitimate thought would be to assume a wait-and-see mode. Yet, the trick is to find good businesses that enjoy secular tailwinds and are supported by robust financials.
Ares Capital: Emotional Sell-Off Overshadows Growth (Rating Downgrade)
Ares Capital's recent earnings misled to a stock sell-off, but their solid growth and stable dividend make them a strong long-term income investment. Despite missing analysts' estimates, ARCC's net investment income and total investment income grew year-over-year, showcasing their impressive performance and growth. ARCC's defensive posture, increased first-lien exposure, and strong balance sheet position them well for navigating tough economic conditions and maintaining dividend safety.
Ares Capital Corporation (ARCC) Is a Trending Stock: Facts to Know Before Betting on It
Recently, Zacks.com users have been paying close attention to Ares Capital (ARCC). This makes it worthwhile to examine what the stock has in store.
