Latest news with #AresCapitalCorporation
Yahoo
22-05-2025
- Business
- Yahoo
Should You Buy Ultra-High-Yielding Ares Capital Corporation While It's Below $22.50?
Ares Capital Corporation offers a notable dividend yield of 8.7%, significantly higher than the S&P 500 index. The company lends to medium-sized companies often underserved by the banking system today. Ares Capital is the largest BDC in the U.S., and is well-positioned to capitalize on the market for private capital lending. 10 stocks we like better than Ares Capital › If you're looking for an easy way to boost your passive income, consider investing in dividend stocks. One standout dividend stock is Ares Capital Corporation (NASDAQ: ARCC). With a dividend yield of 8.7%, Ares Capital pays a dividend over seven times that of the S&P 500 index. Ares Capital plays a key role by providing loans to mid-sized businesses, which are overlooked by traditional banks. With a solid track record of navigating economic downturns, Ares has proven its ability to manage risks effectively. However, the stock has experienced some turbulence recently, amid market volatility stemming from economic uncertainty. If you're considering adding ultra-high-yielding Ares Capital to your portfolio, here's what you need to know first. Ares Capital operates as a business development corporation (BDC), an attractive investment structure for those seeking high-yield income. When set up as a Regulated Investment Company, BDCs must distribute at least 90% of their taxable income to shareholders, allowing investors to benefit directly from the corporation's profitability. Ares Capital specifically targets middle-market companies -- those with earnings before interest, taxes, depreciation, and amortization (EBITDA) ranging from $10 million to $250 million. These mid-sized companies often find themselves underserved by traditional banks, which may shy away from lending due to their smaller size and the perceived credit risks involved. In recent decades, the number of banks has declined significantly due to consolidation. Coupled with stricter regulations following the Great Recession, banks have shifted their focus toward larger businesses, which they deem to carry less risk and offer more liquid debt. As a result, banks' share of the senior secured loan market has plummeted, creating a lending opportunity for BDCs like Ares Capital. Another aspect that makes Ares Capital appealing for investors is its use of floating-rate loans, which adjust with changes in interest rates. As rates rise, so too can Ares' income, enabling the potential for increased dividend payments to investors. Managing debt within middle-market companies presents unique challenges that investors should be aware of. Unlike larger corporations, these companies often have less flexibility and may be more susceptible to risks, especially during times of economic uncertainty characterized by inflation, rising tariffs, and supply chain disruptions. One thing to watch is credit quality. Non-accrual loans are those where principal or interest payments are 30 days overdue or when there's substantial doubt regarding their collection. An uptick in this ratio could indicate increasing credit risk, but current data suggests stability in this area. Currently, loans in non-accrual status account for just 0.9% of Ares Capital's total investments at fair value, a slight improvement from 1% at the end of the previous quarter. One way Ares mitigates some of this risk is by investing in first-lien or second-lien senior secured loans, which account for 64% of its total loans. This positions it as one of the first creditors to be paid during liquidation events. It also has 566 companies in its portfolio, and its largest single investment is only 2% of its portfolio. For now, concerns over credit quality are muted, but it's also worth noting that the first quarter didn't reflect the effect of trade tariffs. Investors should continue to monitor this in upcoming quarters as tariffs work their way through the economy. Ares has a proven track record of success across different economic environments. Since its founding in 2004, the company has delivered excellent total returns (including reinvested dividends) of 12.9% annually -- outperforming the S&P 500 index along the way. Ares Capital Corporation is the largest BDC in the U.S. and has a 20-year lending history to middle-market companies. The company has extensive knowledge of key markets and industries and has invested $160 billion since its inception. With a total addressable market of $5.4 trillion and a longer-term shift to alternative investments like private capital lending, ultra-high-yielding Ares Capital Corporation is well-positioned to grow and capitalize on future opportunities. Before you buy stock in Ares Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Ares Capital wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Should You Buy Ultra-High-Yielding Ares Capital Corporation While It's Below $22.50? was originally published by The Motley Fool
Yahoo
22-05-2025
- Business
- Yahoo
Should You Buy Ultra-High-Yielding Ares Capital Corporation While It's Below $22.50?
Ares Capital Corporation offers a notable dividend yield of 8.7%, significantly higher than the S&P 500 index. The company lends to medium-sized companies often underserved by the banking system today. Ares Capital is the largest BDC in the U.S., and is well-positioned to capitalize on the market for private capital lending. 10 stocks we like better than Ares Capital › If you're looking for an easy way to boost your passive income, consider investing in dividend stocks. One standout dividend stock is Ares Capital Corporation (NASDAQ: ARCC). With a dividend yield of 8.7%, Ares Capital pays a dividend over seven times that of the S&P 500 index. Ares Capital plays a key role by providing loans to mid-sized businesses, which are overlooked by traditional banks. With a solid track record of navigating economic downturns, Ares has proven its ability to manage risks effectively. However, the stock has experienced some turbulence recently, amid market volatility stemming from economic uncertainty. If you're considering adding ultra-high-yielding Ares Capital to your portfolio, here's what you need to know first. Ares Capital operates as a business development corporation (BDC), an attractive investment structure for those seeking high-yield income. When set up as a Regulated Investment Company, BDCs must distribute at least 90% of their taxable income to shareholders, allowing investors to benefit directly from the corporation's profitability. Ares Capital specifically targets middle-market companies -- those with earnings before interest, taxes, depreciation, and amortization (EBITDA) ranging from $10 million to $250 million. These mid-sized companies often find themselves underserved by traditional banks, which may shy away from lending due to their smaller size and the perceived credit risks involved. In recent decades, the number of banks has declined significantly due to consolidation. Coupled with stricter regulations following the Great Recession, banks have shifted their focus toward larger businesses, which they deem to carry less risk and offer more liquid debt. As a result, banks' share of the senior secured loan market has plummeted, creating a lending opportunity for BDCs like Ares Capital. Another aspect that makes Ares Capital appealing for investors is its use of floating-rate loans, which adjust with changes in interest rates. As rates rise, so too can Ares' income, enabling the potential for increased dividend payments to investors. Managing debt within middle-market companies presents unique challenges that investors should be aware of. Unlike larger corporations, these companies often have less flexibility and may be more susceptible to risks, especially during times of economic uncertainty characterized by inflation, rising tariffs, and supply chain disruptions. One thing to watch is credit quality. Non-accrual loans are those where principal or interest payments are 30 days overdue or when there's substantial doubt regarding their collection. An uptick in this ratio could indicate increasing credit risk, but current data suggests stability in this area. Currently, loans in non-accrual status account for just 0.9% of Ares Capital's total investments at fair value, a slight improvement from 1% at the end of the previous quarter. One way Ares mitigates some of this risk is by investing in first-lien or second-lien senior secured loans, which account for 64% of its total loans. This positions it as one of the first creditors to be paid during liquidation events. It also has 566 companies in its portfolio, and its largest single investment is only 2% of its portfolio. For now, concerns over credit quality are muted, but it's also worth noting that the first quarter didn't reflect the effect of trade tariffs. Investors should continue to monitor this in upcoming quarters as tariffs work their way through the economy. Ares has a proven track record of success across different economic environments. Since its founding in 2004, the company has delivered excellent total returns (including reinvested dividends) of 12.9% annually -- outperforming the S&P 500 index along the way. Ares Capital Corporation is the largest BDC in the U.S. and has a 20-year lending history to middle-market companies. The company has extensive knowledge of key markets and industries and has invested $160 billion since its inception. With a total addressable market of $5.4 trillion and a longer-term shift to alternative investments like private capital lending, ultra-high-yielding Ares Capital Corporation is well-positioned to grow and capitalize on future opportunities. Before you buy stock in Ares Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Ares Capital wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Should You Buy Ultra-High-Yielding Ares Capital Corporation While It's Below $22.50? was originally published by The Motley Fool
Yahoo
29-04-2025
- Business
- Yahoo
Ares Capital Corporation (ARCC): Among Large-Cap Stocks Insiders Were Buying in Q1 2025 Before Trump's Tariff Shockwave
We recently published a list of . In this article, we are going to take a look at where Ares Capital Corporation (NASDAQ:ARCC) stands against other large-cap stocks insiders were buying in Q1 2025 before Trump's tariff shockwave. US stocks surged last week following President Trump's statement that he had 'no intention' of removing Federal Reserve Chair Jerome Powell, which helped alleviate concerns about the central bank's independence. Additionally, Trump took a more conciliatory stance on tariffs, suggesting that high import duties on China might eventually be reduced, writes Yahoo Finance. Amid tariff wars and market uncertainty, insider trading often draws attention. Insider stock purchases may signal executive confidence, while sales aren't necessarily negative—they could reflect personal or diversification choices. It's best to view insider trading in context with a company's financials and market conditions. Today, we're focusing on stocks that have seen heavy insider buying activity in the first quarter of the year. Using Insider Monkey's insider trading screener, we identified companies with market caps above $10 billion, where at least two insiders purchased shares in the past three months. From this list, we ranked the top 12 stocks with the highest value of insider purchases Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). An executive in a sharp suit, signing a contract to close a successful leveraged buyout transaction. Market cap: $14.26 billion Ares Capital Corporation is a business development company that invests in middle-market companies, focusing on acquisitions, recapitalizations, restructurings, and leveraged buyouts. It primarily invests in industries such as manufacturing, business services, healthcare, consumer products, and technology, with investments ranging from $20 million to $400 million. The company operates from offices in New York, Chicago, and Los Angeles, and typically seeks to lead transactions and secure board representation in its portfolio companies. In the first quarter of the year, two insiders, including the company's co-president, bought around $1.07 million worth of Ares shares at an average price of $23.04 per share. The stock now trades at $20.75 per share, having declined 5.21% year-to-date, and 0.19% over the past 12 months. In 2024, Ares Capital's revenue grew by 14.38% to $2.99 billion, up from $2.61 billion in 2023. Earnings remained flat at $1.52 billion, the same as the previous year. The company's board of directors declared a first quarter 2025 dividend of $0.48 per share. Overall, ARCC ranks 4th on our list of large-cap stocks insiders were buying in Q1 2025 before Trump's tariff shockwave. While we acknowledge the potential of ARCC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ARCC but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Associated Press
02-04-2025
- Business
- Associated Press
Ares Capital Corporation Schedules Earnings Release for The First Quarter Ended March 31, 2025
NEW YORK, NY / ACCESS Newswire / April 2, 2025 / Ares Capital Corporation ('Ares Capital') (NASDAQ:ARCC) announced today that it will report earnings for the first quarter ended March 31, 2025 on Tuesday, April 29, 2025 prior to the opening of the Nasdaq Global Select Market. Ares Capital invites all interested persons to attend its webcast/conference call at 12:00 p.m. (Eastern Time) on the same day to discuss its first quarter ended March 31, 2025 financial results. All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home page of the Investor Resources section of our website at Please visit the website to test your connection before the webcast. Domestic callers can access the conference call toll free by dialing +1 (800) 225-9448. International callers can access the conference call by dialing +1 (203) 518-9708. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected and to reference the conference ID ARCCQ125. For interested parties, an archived replay of the call will be available approximately one hour after the end of the call through May 29, 2025 at 5:00 p.m. (Eastern Time) to domestic callers by dialing toll free +1 (800) 753-5479 and to international callers by dialing +1 (402) 220-2675. An archived replay will also be available through May 29, 2025 on a webcast link located on the Home page of the Investor Resources section of Ares Capital's website. ABOUT ARES CAPITAL CORPORATION 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, through its investment manager, utilizes its extensive, direct origination capabilities 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 was the largest publicly traded BDC by market capitalization as of March 31, 2025. Ares Capital is externally managed by a subsidiary of Ares Management Corporation (NYSE: ARES), a publicly traded, leading global alternative investment manager. For more information about Ares Capital, visit
Yahoo
16-02-2025
- Business
- Yahoo
Attorney With $2 Million In Dividend Stocks Pulls $16,000/Month – Says 'Young Investors Are Blowing Their Future By Cashing Out Too Soon'
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Investing is a journey that requires patience and a long-term perspective, but for some younger investors, the possibility of quick gains is too tempting to resist. This can significantly impact long-term wealth accumulation since compounding is one of the most powerful reasons to let money grow, especially when talking about dividend investing. Enter the story of an attorney who has mastered the art of dividend investing. With a $2 million portfolio generating $16,000 monthly in passive income, he shares his journey in Reddit's r/Dividends community. Don't Miss: Commercial real estate has historically outperformed the stock market, and CEO of Integris gathered a team of senior investment managers who have $34.22 billion in combined owned and managed assets in the West Coast — The poster has built his $2 million portfolio by applying a dividend and covered calls strategy. He split his investments into $300,000 tranches, which are now yielding around 10% annually. 'For me, being in all-dividends now is a dress rehearsal for full retirement. It's to work out the kinks, watch the cash flow, watch the values fluctuate, and make sure this all works as it 'should' on paper. And thus far, it's working great,' he wrote. The poster's journey wasn't built on dividends alone from the start, as he initially grew his wealth through S&P 500 and NASDAQ index funds, taking advantage of their leveraging potential. Still, as he nears retirement, he has started to focus on income-generating assets to ensure financial stability. The investor has his holdings in a self-directed Roth IRA. The attorney's portfolio consists of a combo of dividend-paying stocks and ETFs, so let's analyze them below. Trending: If there was a new fund backed by Jeff Bezos offering a ? JPMorgan Nasdaq Equity Premium Income ETF JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) is a covered call ETF that generates income by selling call options on NASDAQ-listed stocks. JEPQ has a dividend yield of around 9.53% annually. Ares Capital Corporation A business development company, Ares Capital Corporation (NASDAQ:ARCC) focuses on financing middle-market companies. With a dividend yield of over 8%, ARCC has a diversified investment portfolio and offers exposure to private debt markets. Altria Group Inc. Altria Group Inc (NYSE:MO) is a major producer of tobacco products, mainly known for the Marlboro brand. The company pays 8% to 9% in annual dividends, and because it's a classic dividend aristocrat, it appeals to income-seeking investors the Financial Inc. A mortgage real estate investment trust, Ellington Financial Inc. (NYSE:EFC) specializes in buying and managing mortgage-related assets, such as residential and commercial mortgage-backed securities. EFC generates approximately 13% in dividend yield annually. Guggenheim Strategic Opportunities Fund Guggenheim Strategic Opportunities Fund (NYSE:GOF) has a 13.88% dividend yield per year. GOF is a closed-end fund that invests in a diversified portfolio of debt and fixed-income securities. Enterprise Products Partners LP With an annual dividend yield of around 6% to 7%, Enterprise Products Partners LP (NYSE:EPD) is a leading North American midstream energy services provider that focuses on the storage and transportation of oil, natural gas and petrochemicals. Barings Corporate Investors Generating 7.69% in dividend yield annually, Barings Corporate Investors (NYSE:MCI) is a closed-end fund that invests mainly in privately placed debt and equity securities of U.S. companies. Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. to decide which one is right for you. The changing interest rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks... Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider. For instance, the from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. With payment priority and flexible liquidity options, the Ascent Income Fund is a cornerstone investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000. . Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings. This article Attorney With $2 Million In Dividend Stocks Pulls $16,000/Month – Says 'Young Investors Are Blowing Their Future By Cashing Out Too Soon' originally appeared on Sign in to access your portfolio
