Ares Dynamic Credit Allocation Fund moves among corporate loans, bonds and structured credit to seek income and total return. The borrowers' ability to keep paying, along with the fund's financing costs, determines how much of that income reaches shareholders.
Business
Multi-sector credit CEF
Listing
ARDC · XNYS
Reporting period
2026-06-30
Dividend schedule
Monthly
How the business works
Interest from loans, bonds and structured credit becomes net investment income after expenses. Credit gains or losses are separate and can change NAV even when the monthly payment holds steady.
Extras are shown separately and are not assumed to repeat.
Reported earnings
Each measure shown separately, per share
Net investment income$0.56
Jan 1, 2026 to Jun 30, 2026
$0.00$0.56
Distribution yield11.24%Sourced distributions divided by dated market priceReported annual income yield8.87%Reported net investment income $1.1800 per share for 2025-01-01 to 2025-12-31, divided by approved 2025-12-31 market price $13.3000. Excludes capital gains; historical, not a current yield or forecast.Reported annual investment income$1.18Per share for 2025 FY. Excludes investment gains.Annual dividend$1.35Current regular payment annualized per share
Dividend payment dates
Each announced payment is shown separately. Extra payments are not assumed to repeat.
Compare the share price with the value of the fund portfolio after liabilities. Each price is matched to a dated NAV; a different price date is shown in the label. Read NAV together with cash distributions.
Cash distributions and reported returns
Cash distributions are the total paid per share during each reporting period, including any gains or return of capital. Period lengths may differ, so compare the dates before comparing amounts. Short periods are not annualized.
NAV change excludes distributions. Reported NAV total return includes reinvestment and is copied from the fund statement, not estimated by adding cash distributions to the NAV change.
How to read ARDC income
Interest after fund expenses is the main recurring income measure. Compare it with distributions for the same full reporting period.
Watch defaults, interest-rate changes and expenses. Income can hold up while falling bond or loan values reduce NAV.
Income and distributions
Income and cash distributions per share for the same dated periods. Shorter periods are kept separate and are not annualized. Interest after fund expenses is the main recurring income measure. Compare it with distributions for the same full reporting period.
Losses or weaker cash generation in corporate and securitized credit can reduce the resources available for future distributions.
Monitor
A change can affect future shareholder cash payments or the capital supporting them.
Leverage and financing
The current data service reports effective leverage of 40.31%. Financing magnifies gains and losses, and borrowing costs reduce income available to common shareholders.
Monitor
A change can affect future shareholder cash payments or the capital supporting them.
The assets behind the earnings
How ARDC makes money
Financial snapshot: 2026-06-30. Research reviewed 2026-09-21. Compare results for the reporting periods shown. Historical results are not a forecast.
The assets it owns
$321.869 million net assets328 instruments,283 companies at June30,2026
Common-share net assets at June30,2026. The investment allocation uses gross investments, before financing and other liabilities.
Senior loans37.714852%
Corporate bonds36.805206%
Collateralized loan obligations25.479942%
Three nonoverlapping investment categories at fair value total $538.451million. Each is divided by that investment total, not net assets. Borrowings, preferred financing and other liabilities are excluded from the slices.
Net realized and unrealized investment loss−$0.7900
Total distributions$0.6800
$-0.80$0.70
In the first half of 2026, ARDC reported $0.56 of net investment income per common share and $0.68 of total distributions. Income met most, but not all, of that matching six-month payment. Read the next comparable result with credit outcomes and NAV before deciding whether the difference is narrowing.
Portfolio dividends and interest, realized investment results and any option activity contribute to distribution resources after expenses. A declared distribution can include gains or return of capital as well as investment income; its amount is not an earnings figure.
The earnings available to shareholders depend on the cash generated by these activities after operating and financing costs. Portfolio gains, financing proceeds and recurring income should be evaluated separately.
The portfolio information checked September 11, 2026 reports effective leverage of 40.31%.
Financing can increase earning assets, but its cost reduces income available to common shareholders. When borrowing costs rise or portfolio income falls, the distribution can become harder to sustain.
Ares Dynamic Credit Allocation Fund, Inc. reported $0.5600 per share for 2026-01-01 through 2026-06-30, measured as Fund net investment income per common share; actual reporting period, not annualized.
Actual per-share reporting period, without annualisation. Net investment income, realized gains, unrealized changes and cash distributions are different measures. This comparison is not the Fly High forward Dividend Coverage Ratio.
Losses or weaker cash generation in corporate and securitized credit can reduce the resources available for future distributions.
Watch for changes in the underlying exposure and the next reported results before treating the current payment as evidence of continuing earnings support.
A maintained payment can exceed investment results. Review NAV and reported income together rather than treating distribution yield as total return.
Watch for changes in the underlying exposure and the next reported results before treating the current payment as evidence of continuing earnings support.
Watch the next matching income and cash figures, borrower quality, financing cost and NAV. Keep the half-year result separate from older full-year points.
Net asset value (NAV)
NAV per share$13.0900Sep 29, 2026Market price$11.4900Sep 29, 2026PREMIUM / DISCOUNT TO NAV12.22% discountCalculated from the displayed same-date values.
NAV is the fund's assets minus liabilities, divided by shares outstanding. All values are USD per share.
CEFConnect current common-share NAV and closing market price, both dated 2026-09-29. The published premium or discount agrees with the calculation within source rounding. Older audited NAV history remains unchanged.
Actual first-half2026 NII was $0.56 per common share against $0.68 distributions.
The declared September2026 monthly payment is $0.1125, payable September30.
First-half2026 net investment income of $0.56 covered82.35% of $0.68 reported distributions for that same period. Income coverage is below full coverage; credit outcomes, financing costs and future investment income remain important.
What to watch next
Watch the next matching income and cash figures, borrower quality, financing cost and NAV. Keep the half-year result separate from older full-year points.
Fly High context
Watch the next matching income and cash figures, borrower quality, financing cost and NAV. Keep the half-year result separate from older full-year points.
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U.S. federal · Tax year 2025
Dividend tax treatment
The audited2025 report classifies distributions paid during2025 as ordinary income, with no capital-gain or return-of-capital allocation. The qualified-dividend and Section199A breakdowns have not been confirmed.
This company information is a guide, not your personal tax statement. Use your Form 1099-DIV when you file.
Total ordinary dividends
100%
Qualified dividends
Not confirmed
Capital-gain distributions
0%
Return of capital
0%
Tax year: 2025.
Tax details and source
Total ordinary dividends (includes qualified)
100%
Section 199A portion (within ordinary dividends)
Not confirmed
Exempt-interest distributions
Not confirmed
Reporting form
Form 1099-DIV
Source date
2026-03-06
Qualified dividends are included in total ordinary dividends. Section 199A is a separate designation within ordinary dividends, not extra income or qualified dividend income.
Your account type, holding period and circumstances affect treatment. Use your broker’s tax statement for filing. Return of capital generally reduces cost basis; amounts beyond basis can be taxable. IRS dividend guidance.
