Summary
- In this article, we discuss the BDC, Ares Capital, trading at a 10.2% base dividend yield. ARCC has been a strong performer and trades at an attractive entry point.
- To add an allocation to ARCC in our Income Portfolios, we use capital previously allocated to OCSL, which has moved out to what looks to be an expensive valuation.
- ARCC remains on track to deliver strong results - it has recently guided to only a modest drop in Q4 NAV, equating to a +7% total NAV return for 2022.
- The stock's valuation relative to the sector has fallen off a previously high level, offering an attractive entry point.
- ARCC remains on track to raise the base dividend and deliver additional specials over the medium term.
For further details see:
Ares Capital: A Good Time To Add This 10.2%-Yielding BDC