Ares Capital Co. (NASDAQ:ARCC) declared a quarterly dividend on Wednesday, February 12th, RTT News reports. Stockholders of record on Monday, March 16th will be given a dividend of 0.40 per share by the investment management company on Tuesday, March 31st. This represents a $1.60 annualized dividend and a dividend yield of 8.35%. The ex-dividend date of this dividend is Friday, March 13th.
Ares Capital has raised its dividend payment by an average of 1.7% annually over the last three years and has increased its dividend annually for the last 2 consecutive years. Ares Capital has a dividend payout ratio of 87.0% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Analysts expect Ares Capital to earn $1.86 per share next year, which means the company should continue to be able to cover its $1.60 annual dividend with an expected future payout ratio of 86.0%.
NASDAQ:ARCC opened at $19.17 on Friday. The stock has a 50-day simple moving average of $18.87 and a 200-day simple moving average of $18.68. The stock has a market cap of $8.20 billion, a P/E ratio of 11.02 and a beta of 0.63. Ares Capital has a 1 year low of $16.84 and a 1 year high of $19.33. The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.05 and a current ratio of 1.05.
Several research firms have recently issued reports on ARCC. ValuEngine raised Ares Capital from a “sell” rating to a “hold” rating in a research report on Thursday, October 31st. Royal Bank of Canada assumed coverage on Ares Capital in a research report on Tuesday, November 12th. They issued an “outperform” rating and a $20.00 target price for the company. Raymond James cut Ares Capital from an “outperform” rating to a “market perform” rating in a research report on Tuesday, October 22nd. They noted that the move was a valuation call. Finally, BidaskClub cut Ares Capital from a “hold” rating to a “sell” rating in a research report on Tuesday, January 14th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and five have given a buy rating to the stock. Ares Capital has an average rating of “Hold” and an average target price of $19.92.
In other Ares Capital news, Director Steven B. Mckeever acquired 3,000 shares of the firm’s stock in a transaction dated Thursday, December 5th. The shares were acquired at an average price of $18.74 per share, for a total transaction of $56,220.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.53% of the stock is currently owned by corporate insiders.
Ares Capital Company Profile
Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.
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