Get a deeper insight into the potential performance of Ares Capital (ARCC) for the quarter ended December 2024 by going beyond Wall Street's top -and-bottom-line estimates and examining the estimates for some of its key metrics.
I like the idea of passive income. Making money without doing anything is appealing.
In the closing of the recent trading day, Ares Capital (ARCC) stood at $23.42, denoting a +1.04% change from the preceding trading day.
MoneyShow presents top investment ideas for 2025 from their contributors. This year's edition presents a broad mix of theme-based stock picks, momentum-driven high-flyers and beaten-up stocks with turnaround potential, along with some speculative plays and ETFs. Part 7 includes Village Super Market, MARA Holdings, Hess Midstream, ASML Holding and Ares Capital, among others.
According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade, business, or investment in which the individual does not materially participate.
ARCC's strong earnings, strategic acquisitions, and robust NII position it as the gold standard in the BDC market, justifying its premium valuation. Despite trading at a premium to NAV, ARCC's consistent dividend yield of over 8% and potential for capital appreciation make it an attractive investment. ARCC's diversified portfolio, focus on senior secured loans, and significant liquidity provide a competitive edge and mitigate downside risks.
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.
Ares Capital (ARCC) reachead $23.38 at the closing of the latest trading day, reflecting no change compared to its last close.
The opportunity for generating strong income from the market persists. Don't miss the boat! I love collecting valuable income from strong companies. BDCs are forced to provide the vast majority of their long-term returns via dividends.
High-yield stocks with strong business models and balance sheets reduce investment speculation and offer attractive total returns, but valuation still matters. I look at two big dividend blue-chip stocks that appear overvalued. I also look at two big dividend blue-chip stocks that appear undervalued.
Many high quality BDCs trade at premium or at NAV. To enhance the potential return profile, investors have to look at the discounted BDC space. It does not make sense to invest in higher risk BDCs that trade at tiny discounts. The additional risk and reward mix is not that favorable.
A little money can go a long way. That's especially the case when you invest in stocks that pay you to own them.