Ares Capital Co. (ARCC) to Distribute Quarterly Dividend of $0.48 on June 28th

Ares Capital Co. (NASDAQ:ARCC) announced a quarterly dividend on Wednesday, May 1st, RTT News reports. Shareholders of record on Friday, June 14th will be given a dividend of 0.48 per share by the investment management company on Friday, June 28th. This represents a $1.92 annualized dividend and a yield of 9.35%.

Ares Capital has raised its dividend by an average of 6.3% per year over the last three years. Ares Capital has a dividend payout ratio of 86.1% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Equities analysts expect Ares Capital to earn $2.25 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 85.3%.

Ares Capital Stock Performance

NASDAQ:ARCC opened at $20.54 on Friday. The stock has a 50-day simple moving average of $20.40 and a two-hundred day simple moving average of $20.05. Ares Capital has a 52-week low of $17.53 and a 52-week high of $21.00. The company has a debt-to-equity ratio of 1.06, a quick ratio of 1.24 and a current ratio of 1.24. The firm has a market capitalization of $12.46 billion, a PE ratio of 7.69 and a beta of 0.99.

Ares Capital (NASDAQ:ARCC) last released its quarterly earnings results on Wednesday, May 1st. The investment management company reported $0.59 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.60 by ($0.01). Ares Capital had a net margin of 58.22% and a return on equity of 12.50%. The company had revenue of $701.00 million for the quarter, compared to the consensus estimate of $703.85 million. During the same period in the prior year, the firm posted $0.56 EPS. The business’s revenue for the quarter was up 13.4% on a year-over-year basis. Analysts forecast that Ares Capital will post 2.35 EPS for the current year.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on ARCC shares. Wells Fargo & Company boosted their price objective on Ares Capital from $19.00 to $20.00 and gave the company an “equal weight” rating in a research report on Monday, January 29th. Truist Financial boosted their price objective on Ares Capital from $22.00 to $23.00 and gave the company a “buy” rating in a research report on Thursday. JMP Securities reiterated a “market outperform” rating and issued a $21.00 target price on shares of Ares Capital in a research report on Tuesday, March 26th. B. Riley downgraded Ares Capital from a “buy” rating to a “neutral” rating and set a $21.00 target price on the stock. in a research report on Monday, January 8th. Finally, Oppenheimer boosted their target price on Ares Capital from $21.00 to $22.00 and gave the stock an “outperform” rating in a research report on Thursday. Three analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $21.43.

About Ares Capital

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.