ARCC Stock Recent News

This article is part of our monthly series where we highlight five large-cap, relatively safe, dividend-paying companies offering large discounts to their historical norms. We go over our filtering process to select just five conservative DGI stocks from more than 7,500 companies that are traded on U.S. exchanges, including OTC networks. In addition to the primary list that yields about 3.4%, we present two other groups of five DGI stocks each, with the goal of moderate to high yields.

Ares Capital offers a high 9.2% yield, supported by a diversified portfolio and consistent dividend growth, making it appealing to income investors. ARCC has outperformed the S&P 500 and BDC peers with a 252% total return over the past decade, showcasing strong shareholder returns. The portfolio focuses on safer first-lien loans, with a healthy exposure to floating rate debt and a low debt-to-equity ratio of 1.06x.

Ares Capital (ARCC) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.

24/7 Wall St. Insights The Federal Reserve went all in with a 50-basis-point rate cut.

Going into 2024, I compared the two largest BDCs, providing an opinion on which one of them was set to deliver stronger returns this year. While I was bullish on both of them, I went with FSK given the significant discount to NAV. So far, they have registered almost identical returns. In this article, I have reviewed the fundamentals of ARCC and FSK to determine which one is now better placed to beat the other one over the course of Q4.

The Fed's 50 basis points rate cut signals a potential recession, urging long-term investors to focus on quality companies with strong fundamentals. Blackstone Secured Lending, Ares Capital, and Golub Capital BDC are well-equipped to handle economic downturns due to their strong portfolios, first-lien loan exposures, and investment-rated balance sheets. BDCs like BXSL, ARCC, and GBDC have high liquidity, investment-grade credit ratings, and experienced management, positioning them favorably for economic volatility.

The Federal Reserve's 50 basis point rate cut impacts BDCs, which are sensitive to short-term rate changes, affecting their net investment income. BDCs thrive during rate hikes but face challenges with rate cuts, potentially leading to declining net investment income and increased non-accruals. I take a look at 10 leading BDCs and share my pick for the best one to own in the current environment.

Rate cuts are finally here. So will we actually hit that vaunted “soft landing” everyone's been talking about?

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.