Ares Capital

Ares Capital, the largest publicly traded business development company, holds a $29.3 billion portfolio that is about 71% floating-rate and directed 94% of new Q2 commitments into floating-rate debt. With 74% of its liabilities also floating-rate, the company can see rising income if the Fed hikes and reduced liabilities if rates fall, supporting its 9.7% dividend yield and 17-year record of stable or growing payouts. » Mere på finance.yahoo.com

Ares Capital has placed a guaranteed public bond offering of $750 million with a 6.25% coupon due September 15, 2033. The bonds are callable in whole or in part prior to maturity at par plus any applicable make‑whole premium. BofA, J.P. Morgan, RBC, SMBC Nikko and Wells Fargo are acting as joint bookrunners alongside other banks. Net proceeds are intended to repay existing borrowings under credit facilities; the company may also draw on those facilities for general corporate purposes and portfolio investments. » Mere på de.investing.com

Ares Capital holds a large floating-rate loan portfolio yielding about 10.3% at cost and reported non-accruals of 2.4% of amortized cost, below sector medians. The firm maintains roughly $6 billion of liquidity and moderate leverage, giving it flexibility to absorb higher funding costs and support dividends. Its first-lien-heavy, diversified book and scale allow selective origination and potential to capture rising income if the Fed resumes rate hikes. » Mere på finance.yahoo.com

Ares Capital's 10% yield reflects its BDC structure that must distribute most taxable income, but its portfolio of high‑rate, often floating‑rate loans to smaller companies raises default risk if rates remain high or a recession hits. The firm has cut its dividend in past recessions and dividends are likely to be volatile during broader credit stress. Ares can boost income in diversified portfolios, but relying on its payout for living expenses carries significant risk. » Mere på finance.yahoo.com

Ares Capital pays a 10.3% dividend, supported in Q1 2026 by net investment income of $0.55 per share versus a $0.48 quarterly payout. The $29.5 billion portfolio is weighted toward first‑lien senior secured loans, non‑accruals are 2.1% and leverage sits at 1.12x below the regulatory cap. The firm offers a high yield and coverage cushion but remains exposed to credit‑cycle risk that could pressure NAV and dividends if spreads widen. » Mere på finance.yahoo.com