PFLT - Ares Capital's NAV Dividend And Valuation Vs. 13 BDC Peers - Part 2 (Includes Q2 2021 Dividend Projection)

• Part 2 of this article compares ARCC’s recent dividend per share rates, yield percentages, and several other highly unique (and useful) dividend sustainability metrics to thirteen BDC peers.
• This includes a comparative analysis of ARCC’s cumulative undistributed taxable income ratio, percentage of floating-rate debt investments, recent weighted average annualized yield, and weighted average interest rate on outstanding borrowings.
• Most BDC peers have sustainable dividends over the foreseeable future. That said, current valuations in some BDC peers are “stretched” (especially with potential tax law changes on the horizon).
• Potential tax law changes will not impact the BDC themselves at the parent level (passthrough status unaffected). However, some underlying portfolio companies will be negatively impacted.
• My current buy, sell, or hold recommendation, price target, and dividend sustainability projection for ARCC is stated in the “Conclusions Drawn” section of the article.

For further details see: