Ares Capital Corporation (ARCC) — Dividend Yield, NAV & Valuation Analysis
ARCC · NASDAQ
Trade ARCC Commission-Free
Analyze real-time metrics for Ares Capital Corporation and execute trades with our top-rated institutional partner platforms.
Affiliate Disclosure: Some outbound links on this site route to eToro Partners and Interactive Brokers LLC through internal tracking paths. The site is not currently enrolled in either affiliate program. If accepted into either program in the future, we may earn a commission when you sign up using those links. See our Affiliate Disclosure and Editorial Policy.
Risk Warning
eToro — U.S. Risk Warning: eToro USA LLC is a US broker-dealer registered with the SEC and a member of FINRA. Investing in stocks involves risk, including the possible loss of principal. Past performance is not an indication of future results. Cryptoassets are unregulated in most US states and are highly volatile. Crypto trading is not available for US residents in all jurisdictions. This communication is for informational purposes only and is not investment advice. See eToro USA risk disclosures at etoro.com.
Interactive Brokers — Risk Warning: Interactive Brokers LLC is a US broker-dealer registered with the SEC and a member of FINRA/SIPC. The risk of loss in online trading of stocks, options, futures, currencies, foreign equities, and fixed income can be substantial. Margin trading is only for experienced investors with high risk tolerance. You may lose more than your initial investment. Past performance is not an indication of future results.
Not Investment Advice: This is for educational and informational purposes only. Nothing here constitutes a recommendation, solicitation, or investment advice to buy or sell any security. Past performance does not guarantee future results. Always conduct your own due diligence and consult a licensed financial advisor.
Overview
Ares Capital Corporation is one of the largest and most diversified publicly traded business development companies. The company provides senior secured loans, mezzanine debt, and equity investments to middle-market companies across a range of industries. With a portfolio of over $20 billion and a track record dating back to 2004, ARCC is widely considered the bellwether BDC.
Key Metrics
| Metric | Value |
|---|---|
| 1-Year Total Return | 15.4% |
| 3-Year Total Return | 41.2% |
| 5-Year Total Return | 58.7% |
| Expense Ratio | 8.5% |
| Leverage Ratio | 1.28x |
| Portfolio Companies | 200 |
| Total Assets | $23.5B |
Discount / Premium to NAV
| Stock Price | $20.04 |
| NAV per Share | $19.38 |
| Premium / (Discount) to NAV | 3.4% |
| Implied per-share NAV gap | $-0.66 |
The premium / discount to NAV compares the current stock price to the per-share net asset value of Ares Capital Corporation's investment portfolio. A negative reading (a discount) means the market is pricing ARCC below the value of its underlying assets and is one of the most-watched valuation metrics for any BDC. A positive reading (a premium) means the market is paying a premium over the stated NAV, often reflecting confidence in future dividend coverage and portfolio credit quality. Ares Capital Corporation currently trades at a 3.4% premium to NAV.
Investment Strategy
Ares Capital Corporation focuses on senior secured loans, mezzanine debt in the technology, healthcare, business services sectors. The company targets middle-market companies and maintains a portfolio of 200 investments totaling $23.5B in assets.
Management
CEO: Kipp deVeer | Employees: 325
Suitability
ARCC is suitable for income-focused investors seeking quarterly dividend income with a 9.6% yield. The BDC's focus on senior secured loans provides portfolio characteristics. Investors should consider their risk tolerance and investment objectives before investing.