Ares Capital (ARCC) Declares $0.48 Dividend

Ares Capital said on April 25, 2023 that its board of directors declared a regular quarterly dividend of $0.48 per share ($1.92 annualized). Previously, the company paid $0.48 per share.

Shares must be purchased before the ex-div date of June 14, 2023 to qualify for the dividend. Shareholders of record as of June 15, 2023 will receive the payment on June 30, 2023.

At the current share price of $18.12 / share, the stock's dividend yield is 10.60%. Looking back five years and taking a sample every week, the average dividend yield has been 9.56%, the lowest has been 7.90%, and the highest has been 19.80%. The standard deviation of yields is 1.47 (n=196).

The current dividend yield is 0.71 standard deviations above the historical average.

The company's 3-Year dividend growth rate is 0.20%, demonstrating that it has increased its dividend over time.

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What is the Fund Sentiment?

There are 705 funds or institutions reporting positions in Ares Capital. This is an increase of 7 owner(s) or 1.00% in the last quarter. Average portfolio weight of all funds dedicated to ARCC is 0.63%, an increase of 42.23%. Total shares owned by institutions increased in the last three months by 0.44% to 179,060K shares. The put/call ratio of ARCC is 3.47, indicating a bearish outlook.

Analyst Price Forecast Suggests 18.41% Upside

As of April 24, 2023, the average one-year price target for Ares Capital is 21.46. The forecasts range from a low of 18.18 to a high of $25.20. The average price target represents an increase of 18.41% from its latest reported closing price of 18.12.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Ares Capital is 2,410MM, an increase of 5.98%. The projected annual non-GAAP EPS is 2.27.

What are Other Shareholders Doing?

Royal Bank Of Canada holds 11,316K shares. In it's prior filing, the firm reported owning 11,000K shares, representing an increase of 2.79%. The firm increased its portfolio allocation in ARCC by 2.54% over the last quarter.

BIZD - VanEck Vectors BDC Income ETF holds 5,807K shares. In it's prior filing, the firm reported owning 5,513K shares, representing an increase of 5.05%. The firm decreased its portfolio allocation in ARCC by 6.61% over the last quarter.

Van Eck Associates holds 5,731K shares. In it's prior filing, the firm reported owning 5,432K shares, representing an increase of 5.23%. The firm increased its portfolio allocation in ARCC by 0.24% over the last quarter.

OMERS ADMINISTRATION holds 5,600K shares. In it's prior filing, the firm reported owning 5,666K shares, representing a decrease of 1.19%. The firm increased its portfolio allocation in ARCC by 3.73% over the last quarter.

Bank Of America holds 5,273K shares. In it's prior filing, the firm reported owning 5,814K shares, representing a decrease of 10.25%. The firm decreased its portfolio allocation in ARCC by 99.91% over the last quarter.

Ares Capital Background Information
(This description is provided by the company.)

Founded in 2004, Ares Capital is a leading specialty finance company focused on providing direct loans and other investments in private middle market companies in the United States. Ares Capital's objective is to source and invest in high-quality borrowers that need capital to achieve their business goals, which often leads to economic growth and employment. Ares Capital believes its loans and other investments in these companies can generate attractive levels of current income and potential capital appreciation for investors. Ares Capital utilizes its extensive, direct origination platform and incumbent borrower relationships to source and underwrite predominantly senior secured loans but also subordinated debt and equity investments. Ares Capital has elected to be regulated as a business development company ('BDC') and is the largest BDC by market capitalization as of December 31, 2020. Ares Capital is externally managed by a subsidiary of Ares Management Corporation, a publicly traded, leading global alternative investment manager.

This story originally appeared on Fintel.