Ares Capital Corporation

Company Name: Ares Capital Corporation
Stock Symbol: ARCC
Industry: Asset Management
Sector: Financial Services
Number of Employees: Approximately 1,900

Company Summary:

Ares Capital Corporation (ARCC) is a leading specialty finance company primarily engaged in the business of providing debt and equity financing to middle-market companies. Established in 2004, ARCC is classified as a business development company (BDC) and is managed by Ares Management Corporation, a renowned global investment firm. The company's investment strategy is centered around direct loans, leveraged buyout transactions, and other finance structures designed to support companies through various stages of growth and capital needs. ARCC's portfolio is diverse, spanning multiple industries including healthcare, business services, manufacturing, and consumer products, allowing it to mitigate risk and capitalize on various market opportunities.

ARCC operates through several business segments to deliver its financial services. Its core segments include investment in senior secured loans, mezzanine debt, and equity investments. Senior secured loans, being the highest priority in the capital structure, minimize risk and provide stable returns. Mezzanine debt offers potentially higher returns through subordinated debt with equity kickers, while equity investments enable ARCC to participate in the growth upside potential of its portfolio companies. The balanced approach across these segments allows ARCC to generate consistent income while pursuing growth opportunities.

Financially, ARCC is recognized for its robust dividend yield, making it an attractive option for dividend investors. The company has a solid history of paying regular and special dividends, supported by its sustainable cash flow from operations. As of the latest fiscal reports, ARCC has maintained a strong balance sheet with manageable leverage ratios and a diversified, income-generating portfolio. The company’s consistent profit generation capabilities and prudent risk management practices have contributed to its financial resilience, making it a stable and reliable investment option.

Why ARCC is a Good Dividend Investment:

Ares Capital Corporation is considered a good dividend investment for several reasons. The company boasts a high dividend yield compared to the industry average, providing investors with a substantial and steady income stream. Additionally, ARCC's diversified investment portfolio minimizes risk and ensures ongoing revenue generation, essential for maintaining regular dividend payouts. The company's emphasis on senior secured loans and its effective risk management strategies further enhance its financial stability. By prioritizing investments in resilient and growth-oriented middle-market companies, ARCC maintains a solid performance record, substantiating its capacity to continue delivering attractive dividends to its shareholders.

URLs:

Ares Capital Corporation Website: (https://www.arescapitalcorp.com)

Summary:

Ares Capital Corporation (ARCC) is a prominent specialty finance company that provides debt and equity financing solutions to middle-market companies. Operating through diverse business segments, including senior secured loans, mezzanine debt, and equity investments, ARCC has demonstrated robust financial performance characterized by consistent dividend yields and solid returns. With a well-diversified portfolio and strong risk management practices, ARCC offers investors a dependable and lucrative dividend-focused investment opportunity. For more information, visit ARCC's website, LinkedIn page, or connect with its parent company Ares Management on Facebook.

 

Reminder: past performance is not indicative of how an investment will perform in the future, before making any investment decisions based on this information, and/or the information contained on the website, refer to the TERMS OF SERVICES.

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ARCC Dividend Coverage History and Fly High Projection

*Fly High Investing uses a proprietary projection algorithm that more accurately predicts dividend coverage vs common analyst sentiment. The 12 month projection is based on the most recent data and quarter

RSS Annual and Quarterly reports