Ares Capital's Fat Yield Makes It Worth Keeping

Ares Capital remains a 'buy' due to its reliable 10.13% yield and disciplined distribution coverage. ARCC's cumulative profits and realized gains have consistently exceeded distributions, with a $1.05 billion surplus since 2022. Despite $440 million in unrealized losses, NAV per share has grown over recent years, and shares now trade at a discount to NAV. Higher interest rates could further boost ARCC's profitability, while short-term analyst forecasts suggest modest profit headwinds. Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More »

If you follow my work closely, you understand that I am very skeptical of many high-yielding opportunities. That is especially true when we are talking about different investment funds and BDCs. The biggest issue that I have This article was written by Daniel Jones