ORCC - Ares Capital's NAV Dividend And Valuation Vs. 14 BDC Peers - Part 2 (Includes Q1 2021 Dividend Projection)

January, 10 2021 11:13 AM Owl Rock Capital Corp

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 14 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.
My current buy, sell, or hold recommendation, price target, and dividend sustainability projection for ARCC are stated in the “Conclusions Drawn” section of the article.
If the COVID-19 pandemic persists throughout 2021 via exceptionally slow vaccine distributions, this will likely halt/slowdown the recovery throughout broader financial markets, including the BDC sector.
So, while there should be a bit of caution over the short term (mainly pertaining to credit risk), I believe the prospects for the BDC sector are promising over the long term.

For further details see: