PM ImagesWeeks like this are exactly why I love diversification. We started the week out strong after Meta Platforms (META) announced earnings, then headed into a Fed meeting where Fed Chair Powell left the door open for a rate cut in September. This was immediately followed by what I consider a misinterpretation by the market on Amazon's (AMZN) earnings and an unemployment number that kicked recession fears into high gear. We ended the week with the DOW falling -610.71, the S&P 500 retracing by -100.12 ...

Dimitri Otis Performance assessment I had a 'Strong Sell' rating in my last coverage of Ares Capital (NASDAQ:ARCC) to reflect a high confidence view that the stock would lag the broader S&P500 (SPY) (SPX) market index. The active return on this view has been +0.95% so far: Performance since Author's last article on Ares Capital (Seeking Alpha, Author's Last Article on Ares Capital) Thesis update After Q2 FY24 results, I am changing my stance to a more neutral view: Investment activity has been strong ...

Making passive income should be easy with these great stocks.Let your money work for you. You've probably heard that said multiple times over the years, but it's still good advice.One of the best ways to put your money to work is through dividend stocks. Some can make your money work especially hard for you. Investing $100,000 in these seven high-yield dividend stocks could generate over $7,000 in annual passive income.1. Ares CapitalAres Capital (ARCC -2.59%) is a leading business development company (BDC) ...

With an average yield above 7% at recent prices, these stocks could give your passive income stream a big boost.Whether you're interested in outperforming the broad market or producing a passive income stream, dividend-paying stocks are what you want in your portfolio.Nearly everyone knows that dividend payers deliver quarterly payouts, but that's not all they're good for. It's a well-documented fact that companies committed to distributing their profits usually outperform companies that don't have a divide ...

Second Quarter 2024 Earnings Presentation 0 42 65 155 112 42 GENERAL PALETTE 4 94 109 127 127 127 120 163 198 Credit 0 42 65 Private Equity BUSINESS SECTOR PALETTE 2 87 133 Real Estate 71 126 163 Strategic Initiative s Important Notice This presentation has been prepared for Ares Capital Corporation ("Ares Capitalˮ) for the benefit of its public stockholders. This presentation is solely for information purposes in connection with evaluating the business, operations and financial results of Ares Capital. Thi ...

John M Lund Photography Inc It is high time to dive back into the world of private credit. The past five years have reshaped the credit industry as the pandemic era transitioned into the era of unprecedented rising interest rates. As a reminder, just last year, the federal funds rate increased to the highest level in decades and has remained steady for months. Data by YCharts The Federal Reserve is slated to meet this week to discuss monetary policy and the possibility of near term rate cuts. Investors ...

Henrik SorensenAres Capital (NASDAQ:ARCC) presented robust net investment income results for 2Q24 on Tuesday that showed that the business development company has no problems covering its $0.48 per share per quarter dividend payout with net investment income. As a matter of fact, Ares Capital’s dividend margin of safety improved 4 percentage points in the second quarter and Ares Capital’s portfolio enjoyed strong growth while its quality remained high. The First Lien representation also increased due to ...

Nathan Howard/Getty Images News Ares Capital: Market-Leading BDC Is Hard To Beat Ares Capital (NASDAQ:ARCC) is a leading business development company with a market cap of over $13B. The BDC focuses on direct lending for the middle market, leveraging its market leadership and scale to outcompete its rivals. Its well-diversified portfolio allows ARCC investors to benefit from income investing and potential capital appreciation. Externally managed by Ares Management Corporation (ARES), the BDC benefits from ...

PM Images It's a busy week, and earnings reports can get lost in the mix as big tech is at the center stage, and an FOMC meeting is underway. While the spotlight is shining on Microsoft (MSFT), Ares Capital (NASDAQ:ARCC) just delivered a strong quarter that should set up the rest of 2024 for income investors. ARCC is the largest BDC by market cap and just beat analyst estimates on the top line by $39.87 million as they generated $755 million in revenue during Q2. ARCC delivered $0.61 in non-GAAP EPS, a ...

Core Insights - Ares Capital Corporation (ARCC) reported a 1.9% increase in shares following its second-quarter 2024 results, with core earnings of 61 cents per share exceeding the Zacks Consensus Estimate of 58 cents, reflecting a 5.2% increase from the prior-year quarter [1] Financial Performance - Total investment income rose to $755 million, a 19.1% year-over-year increase, driven by higher interest income, capital structuring service fees, and dividend income, surpassing the Zacks Consensus Estimate of $714.3 million [2] - Total quarterly expenses increased to $356 million, up 13.4% year-over-year, which was below the estimated $378.7 million [2] Portfolio Activity - The company made gross commitments of $3.86 billion to new and existing portfolio companies in the second quarter, significantly higher than the $1.22 billion in the prior-year quarter [3] - Ares Capital exited $1.38 billion of commitments compared to $1.14 billion a year ago, with a fair value of portfolio investments at $25 billion as of June 30, 2024 [3] Balance Sheet Strength - As of June 30, 2024, cash and cash equivalents totaled $601 million, an increase from $535 million as of December 31, 2023 [4] - The company had $4.5 billion available for additional borrowings, with total outstanding debt at $13 billion and total assets at $26.1 billion, exceeding the estimated $24.3 billion [4] - Stockholders' equity was reported at $12.4 billion, higher than the projected $11.5 billion, with a net asset value of $19.61 per share, up from $19.24 as of December 31, 2023 [4] Future Outlook - The growth in total investment income is expected to continue due to rising demand for customized financing, with increased investment commitments likely supporting financial performance [5]