ARCC - Ares Capital Is Still Dirt Cheap With Highly Attractive Yields
2024-07-31 11:30:00 ET
Summary
- Ares Capital is a leading BDC that focuses on direct lending for the middle market. It benefits from market leadership and scale.
- ARCC posted a solid Q2 earnings release, justifying the market's optimism.
- Ares Capital has adjusted its focus on smaller companies, which could bolster its core EPS accretion.
- ARCC's risk profile is well-managed, with low non-accruals compared to its peers.
- I explain why ARCC's high dividend yield of more than 9% provides substantial valuation support. Read on.
Ares Capital: Market-Leading BDC Is Hard To Beat
Ares Capital ( ARCC ) is a leading business development company with a market cap of over $13B. The BDC focuses on direct lending for the middle market, leveraging its market leadership and scale to outcompete its rivals. Its well-diversified portfolio allows ARCC investors to benefit from income investing and potential capital appreciation. Externally managed by Ares Management Corporation ( ARES ), the BDC benefits from the asset manager's broad origination capabilities and substantial experience in the industry. ...
Ares Capital Is Still Dirt Cheap With Highly Attractive Yields