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Ares Capital Corporation Dividends

ARCC Stock Analysis

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Section title

Dividend Yield
9.29%
Payout Ratio
79.34%
Dividend Amount Per Share
$1.92
Last Ex-Dividend Date
Sep 13, 2024

ARCC Dividend Safety

ARCC paid out 79.34% of its $2B earnings as dividends over the last 12 months.

Unsafe

  1. Very Unsafe

  2. Unsafe

  3. Somewhat Safe

  4. Safe

  5. Very Safe

Dividend Payout Ratio

ARCC's Dividend Payout Ratio of 79.34% is considered high for the Financial Services sector, potentially restricting the funds available for reinvestment and threatening future growth.

Interest Rate Coverage

ARCC's Interest Coverage Ratio of 3.003 indicates strong financial health with easy coverage of interest expenses.

Income Quality

ARCC demonstrates poor income quality with a ratio of 0.336. This indicates low-quality earnings and high risk of dividend cuts.

ARCC Dividend Growth

Ares Capital Corporation(ARCC) offers a dividend yield of 9.29% and pays $1.92 in dividends per share. Explore the historical dividend growth of ARCC.

Dividend Stability

ARCC has maintained stable dividend payments over the past 10 years with no cuts over 5%.

Dividend Growth

ARCC's dividend payments have shown moderate growth, growing by 3.844% annually over the last 5 years.

Earnings Growth

ARCC's earnings have grown by 13.927% annually over the last 5 years. This strong earnings growth suggests a stable and increasing income stream, supporting the sustainability and potential growth of dividend payouts.

ARCC Dividend Yield Attractiveness

Ares Capital Corporation(ARCC) provides a dividend yield of 9.29%. Compare this with the averages of its peers, industry, and sector to see how it stacks up.

Yield %

Industry

Sector

ARCC

Peers

3.14%

3.74%

9.29%

10.28%

Dividend Yield

ARCC's dividend yield of 9.29% is considered high compared to the sector average of 3.743%, indicating a higher potential risk for investors.

ARCC Free Cash Flow and Dividends Paid

This chart shows the Free Cash Flow (FCF) and the portion of FCF used to pay dividends each year by Ares Capital Corporation. The filled portion of the bar represents the dividends paid, while the remaining portion represents the remaining FCF.

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