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

Key Points

• Ares Capital declared a quarterly dividend of $0.48 per share, payable June 30 to holders of record June 15, implying a $1.92 annualized payout and a 10.1% yield.
• The dividend is currently largely covered but potentially vulnerable: Ares has a 96% payout ratio now and analysts expect $1.92 EPS next year, which would imply a ~100% payout ratio if estimates hold.
• In the latest quarter Ares reported $0.47 EPS (missing estimates by $0.01) on $763M revenue (below the $779.1M consensus), and the stock recently traded near $18.92 with a P/E of ~10.2 and $13.6B market cap.

Ares Capital Corporation (NASDAQ:ARCC - Get Free Report) declared a quarterly dividend on Tuesday, April 28th. Stockholders of record on Monday, June 15th will be given a dividend of 0.48 per share by the investment management company on Tuesday, June 30th. This represents a c) annualized dividend and a dividend yield of 10.1%. The ex-dividend date of this dividend is Monday, June 15th.

Ares Capital has increased its dividend payment by an average of 0.0%annually over the last three years. Ares Capital has a payout ratio of 96.0% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Research analysts expect Ares Capital to earn $1.92 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 100.0%.

Ares Capital Stock Performance

Shares of ARCC stock traded up $0.31 on Tuesday, reaching $18.92. The stock had a trading volume of 6,407,185 shares, compared to its average volume of 7,317,409. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.70 and a current ratio of 1.70. Ares Capital has a 1 year low of $17.40 and a 1 year high of $23.42. The stock has a market cap of $13.58 billion, a P/E ratio of 10.17 and a beta of 0.58. The company has a 50 day simple moving average of $18.53 and a 200 day simple moving average of $19.61.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The investment management company reported $0.47 EPS for the quarter, missing analysts' consensus estimates of $0.48 by ($0.01). Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The firm had revenue of $763.00 million for the quarter, compared to analysts' expectations of $779.10 million. During the same quarter last year, the company posted $0.50 EPS. The firm's revenue was up 4.2% compared to the same quarter last year. Equities research analysts expect that Ares Capital will post 1.93 EPS for the current year.

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.

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