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