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Ares Capital Corporation

ARCC Stock Analysis

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Dividend Score

Dividend Score ranks stocks based on metrics important to dividend investors, helping you identify companies with a history of consistent dividends and the financial strength

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Health Checks

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.

Dividend Stability

ARCC has maintained stable dividend payments over the past 11 years with no cuts over 5%.

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About Ares Capital Corporation

Asset Management
Financial Services

Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors...

Ares Capital Corporation Key Metrics

Market Cap
$13B
52 Weeks Low
$18.55
52 Weeks High
$21.84
Dividend Yield
9.20%
P/E
7.51x
P/S
5.79x

Upcoming Events

  • Ex-Dividend Date

    To receive dividends, buy the stock before this date.

  • Dividend Payment

Ares Capital Corporation Dividends

Dividend Yield
9.20%
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 9.20% 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 11 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.

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ARCC Analyst Forecasts

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ARCC Financials

ARCC Income Statement Key Metrics

  • Revenue(TTM)2.23 B
  • Gross Profit(TTM)1.87 B
  • EBITDA(TTM)1.22 B
  • Net Income(TTM)1.68 B
  • EPS Diluted(TTM)2.84

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ARCC earnings and revenue history

Gross Profit Margin vs Peers

Profit margin ratio of ARCC (1.274) is lower than the average of its peers (415.639).

Net Profit Margin vs Peers

Net profit margin ratio of ARCC (0.930) is higher than the average of its peers (0.647).

ARCC Return on Equity

See how efficiently ARCC generates profit for it's shareholders.

13.59%

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  1. Poor

  2. Average

  3. Strong

Return on Equity vs Peers

Return on Equity ratio of ARCC (0.136) is higher than the average of its peers (0.076).

Return on Equity Growth

ARCC's Return on Equity has shown poor growth over the past 10 years, increasing by only 1.97%.

ARCC Revenue Growth

See how ARCC has grown it's revenue over the past 10 years.

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Revenue Growth

ARCC's revenue has grown modestly over the past 10 years, increasing by over 9.66%.