24/7 Wall St. Insights The Federal Reserve went all in with a 50-basis-point rate cut.
The stock market is way up, which is making it hard to find stocks that offer satisfying dividend yields. Ares Capital and PennantPark Floating Rate Capital offer dividend yields above 9% at recent prices.
With the Federal Reserve kickstarting a new rate-cutting cycle, dividend stocks have become even more attractive. On Wednesday, the Fed made a hefty 50 basis points cut, surprising many who had anticipated a more modest 25 basis point reduction.
Investors looking for ways to find stocks that are set to beat quarterly earnings estimates should check out the Zacks Earnings ESP.
Rate cuts are finally here. So will we actually hit that vaunted “soft landing” everyone's been talking about?
In the most recent trading session, Ares Capital (ARCC) closed at $20.71, indicating a +0.1% shift from the previous trading day.
Ares Capital (ARCC) reachead $20.69 at the closing of the latest trading day, reflecting a +0.39% change compared to its last close.
Buying dividend-paying stocks might be the easiest way there is to build a stream of passive income. Ares Capital is the largest publicly traded business development company and it's more reliable than its ultra-high dividend yield suggests.
Ares Capital (ARCC) is a high-quality BDC with a diversified loan portfolio and strong track record, making it a solid choice for high-income portfolios. ARCC's financials are robust, with a 12% IRR on its $25 billion portfolio and a well-covered 9.4% dividend yield. Despite potential risks from falling interest rates, ARCC's credit hedging and floating-rate debt offer some protection, though dividends may dip a little bit.
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.
With the Federal Reserve kickstarting a new rate-cutting cycle, dividend stocks have become even more attractive. On Wednesday, the Fed made a hefty 50 basis points cut, surprising many who had anticipated a more modest 25 basis point reduction.
Ares Capital's earnings are influenced by interest rates and leverage, with a bias towards higher earnings under higher rates. ARCC management has been reinvesting earnings to support future growth, aiming to sustain and potentially increase the $0.48 dividend. Ares Capital's taxable income spillover and strong market environment suggest continued earnings above the dividend, with potential for future dividend increases.