Ares Capital Corporation (ARCC) to Issue Quarterly Dividend of $0.48 on September 30th

Ares Capital Corporation (NASDAQ:ARCC) declared a quarterly dividend on Wednesday, July 29th. Shareholders of record on Tuesday, September 15th will be given a dividend of 0.48 per share by the investment management company on Wednesday, September 30th. This represents a c) annualized dividend and a yield of 9.7%. The ex-dividend date of this dividend is Tuesday, September 15th.

Ares Capital has increased its dividend by an average of 0.0%per year 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 decline. 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 Price Performance

Shares of ARCC stock opened at $19.74 on Friday. Ares Capital has a twelve month low of $17.40 and a twelve month high of $22.50. The stock has a market capitalization of $14.17 billion, a price-to-earnings ratio of 14.62 and a beta of 0.57. The stock has a fifty day simple moving average of $19.42 and a two-hundred day simple moving average of $18.87. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 1.14.

Ares Capital (NASDAQ:ARCC) last posted 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 business had revenue of $768.00 million for the quarter, compared to the consensus estimate of $770.19 million. Ares Capital had a return on equity of 9.80% and a net margin of 30.91%.During the same quarter in the prior year, the company earned $0.50 EPS. On average, analysts predict that Ares Capital will post 1.91 EPS for the current fiscal year.

Analyst Ratings Changes

Several brokerages have issued reports on ARCC. Wall Street Zen cut shares of Ares Capital from a “hold” rating to a “sell” rating in a report on Sunday, August 2nd. JPMorgan Chase & Co. lowered their price target on shares of Ares Capital from $19.00 to $18.50 and set an “overweight” rating for the company in a research report on Thursday, July 2nd. UBS Group increased their price objective on shares of Ares Capital from $19.00 to $21.00 and gave the company a “neutral” rating in a research note on Tuesday, September 1st. Truist Financial cut their price target on Ares Capital from $22.00 to $21.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. Finally, Wells Fargo & Company reissued an “equal weight” rating and issued a $19.00 price target (down from $20.00) on shares of Ares Capital in a research report on Friday, June 12th. Eight research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, Ares Capital presently has a consensus rating of “Moderate Buy” and an average target price of $20.60.

Ares Capital Company Profile

Ares Capital Corporation (NASDAQ: ARCC) is a business development company that provides financing to middle-market companies. The company invests primarily in privately originated loans and other debt investments, helping businesses fund acquisitions, recapitalizations, refinancings, growth initiatives and other corporate purposes.

Its investment portfolio generally includes senior secured loans, subordinated debt and mezzanine financing, along with selected equity investments. Ares Capital focuses on companies with established operations across a variety of industries and typically works with private equity sponsors, management teams and other financial partners.

Founded in 2004, Ares Capital is externally managed by Ares Capital Management LLC, an affiliate of global alternative investment manager Ares Management Corporation.