Ares Capital Corporation Announces Quarterly Dividend of $0.48 (NASDAQ:ARCC)

Ares Capital Corporation (NASDAQ:ARCC) announced a quarterly dividend on Wednesday, July 29th. Investors of record on Tuesday, September 15th will be paid a dividend of 0.48 per share by the investment management company on Wednesday, September 30th. This represents a c) dividend on an annualized basis and a dividend yield of 10.3%. The ex-dividend date is Tuesday, September 15th.

Ares Capital has raised its dividend by an average of 0.0%annually over the last three years. Ares Capital has a dividend payout ratio of 96.0% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Equities research analysts expect Ares Capital to earn $1.94 per share next year, which means the company should continue to be able to cover its $1.92 annual dividend with an expected future payout ratio of 99.0%.

Ares Capital Stock Performance

Shares of Ares Capital stock traded down $0.33 during trading hours on Wednesday, reaching $18.71. The company had a trading volume of 4,388,887 shares, compared to its average volume of 6,357,691. Ares Capital has a one year low of $17.40 and a one year high of $22.93. The business has a fifty day simple moving average of $18.67 and a 200 day simple moving average of $18.93. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.40 and a quick ratio of 1.40. The firm has a market cap of $13.43 billion, a PE ratio of 11.48 and a beta of 0.56.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings results on Wednesday, July 29th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.47. The firm had revenue of $768.00 million for the quarter, compared to the consensus estimate of $770.19 million. Ares Capital had a net margin of 37.30% and a return on equity of 9.85%. During the same period in the prior year, the firm posted $0.50 earnings per share. On average, analysts anticipate that Ares Capital will post 1.9 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on ARCC shares. Truist Financial reduced their target price on Ares Capital from $23.00 to $22.00 and set a “buy” rating for the company in a research report on Wednesday, April 29th. Weiss Ratings reissued a “hold (c)” rating on shares of Ares Capital in a research note on Tuesday, June 9th. Wall Street Zen upgraded Ares Capital from a “sell” rating to a “hold” rating in a research report on Saturday. Citizens Jmp dropped their target price on shares of Ares Capital from $23.00 to $22.00 and set a “market outperform” rating for the company in a report on Wednesday, April 22nd. Finally, Oppenheimer cut their price target on shares of Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Wednesday, April 29th. Eight analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $20.60.

About Ares Capital

Ares Capital Corporation (NASDAQ: ARCC) is a publicly traded business development company (BDC) that specializes in providing debt and equity financing solutions to U.S. middle-market companies. As a BDC, Ares Capital offers investors access to a diversified portfolio of tailored credit investments, including senior secured loans, unitranche financing, mezzanine debt and equity co-investments. The firm’s flexible capital structures are designed to support companies seeking growth capital, refinancing or strategic acquisitions.

Through its credit platform, Ares Capital focuses on originations, underwriting and portfolio management across a range of industries, with a particular emphasis on sectors such as healthcare, technology, industrials and business services.