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]

Sergey_P We last covered Ares Capital (NASDAQ:ARCC) back at the beginning of May following its Q1 earnings release. At the time, we were neutral on the stock's forward outlook as it appeared to be fundamentally sound and offered an attractive 9.2% forward dividend yield, while its 7.3% premium to NAV was rich relative to its history of trading roughly in line with NAV. We also noted Ares Capital's management commentary, as well as the commentary of other management teams in the BDC sector, indicating that t ...

Ares Capital Corporation (NASDAQ:ARCC) Q2 2024 Earnings Conference Call July 30, 2024 10:00 AM ET Company Participants John Stilmar - Partner, Co-Head of Public Markets IR Kipp DeVeer - CEO Scott Lem - CFO Kort Schnabel - Co-President, Los Angeles Conference Call Participants Melissa Wedel - JPMorgan Finian O'Shea - Wells Fargo Securities Paul Johnson - ABW Kenneth Lee - RBC Capital Markets Robert Dodd - Raymond James Mitchel Penn - Oppenheimer Casey Alexander - Compass Point Operator Good morning. Welcome ...

Ares Capital (ARCC) came out with quarterly earnings of $0.61 per share, beating the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.17%. A quarter ago, it was expected that this private equity firm would post earnings of $0.59 per share when it actually produced earnings of $0.59, delivering no surprise.Over the last four quarters, the company h ...

Title of each class Trading symbol Name of each exchange on which registered Common stock, par value $0.001 per share ARCC NASDAQ Global Select Market Class Outstanding at July 26, 2024 Common stock, $0.001 par value 630,386,591 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECU ...

Exhibit 99.1 As of ARES CAPITAL CORPORATION ANNOUNCES JUNE 30, 2024 FINANCIAL RESULTS AND DECLARES THIRD QUARTER 2024 DIVIDEND OF $0.48 PER SHARE DIVIDEND DECLARATIONS New York, NY — July 30, 2024 — Ares Capital Corporation ("Ares Capital") (NASDAQ: ARCC) announced that its Board of Directors has declared a third quarter 2024 dividend of $0.48 per share. The third quarter 2024 dividend is payable on September 30, 2024 to stockholders of record as of September 13, 2024. JUNE 30, 2024 FINANCIAL RESULTS Ares C ...

Core Viewpoint - Ares Capital Corporation (ARCC) is expected to report second-quarter 2024 results on July 30, with revenues anticipated to improve year-over-year, while earnings are likely to remain unchanged [1] Earnings & Sales Projections for Q2 - The Zacks Consensus Estimate for ARCC's second-quarter earnings is 58 cents, indicating no change from the prior-year quarter [2] - The consensus estimate for sales is $714.3 million, suggesting a 12.7% rise year-over-year [2] Other Key Estimates for Q2 - The Zacks Consensus Estimate for interest income from investments is $524 million, reflecting a 10.1% increase from the prior-year quarter [3] - The consensus estimate for dividend income is $140 million, indicating a year-over-year growth of 13.8% [3] - The estimate for capital structuring service fees is $33 million, suggesting a 57.1% year-over-year rise [3] - The consensus estimate for other income is $14 million, implying no growth from the prior-year quarter [3] Expense Projections - Ares Capital has been experiencing higher expenses, with total expenses estimated at $378.7 million, indicating a year-over-year rise of 20.6% [4] Earnings Whispers - Ares Capital has an Earnings ESP of 0.00% and currently holds a Zacks Rank 3, indicating uncertainty in beating the Zacks Consensus Estimate for earnings [5]

Core Viewpoint - The article highlights three ultra-high-yield dividend stocks that are considered reliable sources of passive income for long-term investors. Group 1: Ares Capital - Ares Capital (ARCC) offers a dividend yield of over 9.2%, as it is required to return at least 90% of its income to shareholders to maintain tax exemptions [2] - The company has a strong track record of 15 years of steady to growing dividends and is expected to continue generating strong free cash flow [2] - Ares Capital has outperformed the S&P 500 since its public trading began in October 2004, with a cumulative total return over 65% higher than the index [3] Group 2: Enbridge - Enbridge (ENB) provides a dividend yield of nearly 7.4% and has increased its dividend for 29 consecutive years [4] - The company's distributable cash flow payout ratio is between 60% and 70%, with 98% of cash flow generated from reliable contracted assets [4] - Enbridge has multiple growth drivers, including pipeline expansions and revenue escalators, which support its ability to maintain and grow dividends [4] Group 3: Verizon Communications - Verizon Communications (VZ) has a dividend yield over 6.6% and has increased its dividend for 17 consecutive years [5] - The company generated $8.5 billion in free cash flow in the first half of 2024, an increase from $8 billion in the same period of 2023, indicating strong cash flow generation [5] - Verizon's management emphasizes the importance of dividends and aims to manage its payout ratio to support continued dividend growth [5]

benjaminalbiachInvesting in high-flying growth stocks can be like a game of musical chairs. Everything may seem fine when the music is playing and the stocks are going up, but you don’t want to be holding the bag when frothy valuations eventually come down, as appears the case with frothy stock valuations in Nvidia (NVDA) and Apple (AAPL) stock over the past week. Perhaps that’s why a market rotation of sorts is happening right now, with the iShares Select Dividend ETF (DVY) outperforming the S&P 500 (S ...