Ares Dynamic Credit Allocation Fund, Inc. (ARDC)
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3 Closed-End Funds to Maximize Dividend Payments
Ultra-high dividend yields for individual stocks may appeal to investors seeking additional income—after all, who doesn't want high dividend payments? At the same time, though, a very high yield can sometimes be a giant red flag for investors.
ARDC: Valuation Has Fallen Back To Earth But With Elevated Risks
Ares Dynamic Credit Allocation Fund remains a hold due to valuation and near-term debt market risks. ARDC trades at a 6.7% discount to NAV, with a 10.8% yield, but faces risk from rising borrower defaults and aggressive leverage (40.9%). The portfolio is 80% below-investment-grade debt, making ARDC sensitive to credit deterioration if interest rates remain elevated.
ARDC: Buy This High-Yield Dynamic Credit Fund Before The Sale Ends
Ares Dynamic Credit Allocation Fund is rated Buy, offering a 10.7% yield and trading at a -7.5% discount to NAV. ARDC's distribution is well covered with significant undistributed net investment income, following a recent reduction to $0.1125 per month. The fund employs dynamic allocation across high-yield bonds, senior loans, and CLOs, with 40% leverage currently above its 33% target.
Ares Dynamic Credit Allocation Fund, Inc. Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| PER Paul E. Rasmussen SIT INVESTMENT ASSOCIATES Inc. | 92,478 | $1.23M | $1.15M | -$78,471.25 | -6.38% |
 Jeff Ameen Spire Wealth Management | 8,500 | $122,635 | $105,230 | -$17,405 | -14.19% |
| PF Phillip Fitzsimmons Hennion & Walsh Asset Management Inc. | 219,107 | $2.77M | $2.71M | -$55,457.57 | -2% |
 Kyle P. Smith NewEdge Wealth LLC | 249,723 | $3.46M | $3.1M | -$360,675.33 | -10.41% |
| CAL CoreCap Advisors LLC CoreCap Advisors LLC | 3,584 | $52,131.63 | $44,369.92 | -$7,761.71 | -14.89% |
