ARCC Stock Recent News

Knowing who can give you what you need most, regardless of market conditions, is a must for retirees. ARCC has a stellar track record and shows no signs of fumbling the ball. You need income. The middle market needs liquidity. ARCC is the answer to both.

The investments Pfizer made with buckets of COVID-19 profits could allow its 15-year, dividend-raising streak to continue. PennantPark Floating Rate Capital is a business development company that offers a dividend yield above 11% at recent prices.

Ares Capital reported strong Q2 results, with a growing portfolio value and surging new investment commitments. Asset quality remained high and dividend coverage remained very decent as well. Despite recent market sell-off, Ares Capital's valuation remains attractive, trading below the longer term P/B ratio.

ARCC delivered a solid 2.9% total NAV return over the quarter. It trades at a 9.2% dividend yield and 11.7% core earnings yield. Portfolio sector allocation includes software and healthcare, with a focus on larger companies and lower first-lien portfolio compared to average BDCs. Core net investment income increased due to higher leverage and a jump in fees.

24/7 Wall St. Insights  Interest rates have plunged, and dividend stocks got hit during the sell-off.

The market experienced volatility due to big tech earnings, Fed meeting, and rising unemployment, leading to S&P and Nasdaq declines. Dividend Harvesting Portfolio profitability only retraced by 0.81% despite the market downturn, with $61.95 in dividends generated in week 179. Portfolio composition includes diverse sectors with a focus on generating recurring income while mitigating downside risk, with REITs under 20%.

BDCs are experiencing a pullback in share prices due to recession fears as well as investor sentiment, creating buying opportunities for investors. Blackstone Secured Lending and Ares Capital are two high-quality BDCs that have seen their share price pullback recently and are now trading at attractive valuations. BXSL and ARCC have strong fundamentals, diversified portfolios, low leverage, and ample liquidity, making them solid long-term investments for income-focused investors.

The BDC sector is now in a correction. It also faces numerous significant headwinds. We share our outlook on and approach to the sector moving forward.

Markets are in turmoil due to a troubling US jobs report. This is creating attractive opportunities in high-yield and dividend-growth stocks. We share two attractive investment grade and defensively positioned opportunities that offer 11%+ dividend yields.

As the signs indicated last quarter, investment activity has been strong. However, on a run-rate basis, I believe it is slowing down in Q3 FY24. As expected, Ares Capital's yields seem to be peaking. Yields on incremental deals signed in July 2024 have been 40bps lower than company average levels. The chances of a rate cut have dramatically increased in recent days. Ares Capital, with its higher floating rate debt exposure, is well positioned to benefit.