Why Ares Capital is in the top 10 financial stocks with a yield of 8.48% (ARCC)


Ares Capital Corporation (Symbol: ARCC) has been named one of the top 10 dividend-paying financial stocks, according to Dividend Channel, which released its latest report ”Dividend rank” report. The report noted that among financial company stocks, the ARCC displayed both attractive valuation metrics and strong profitability metrics. For example, ARCC’s recent stock price of $19.80 represents a price-to-book ratio of 1.0 and an annual dividend yield of 8.48% – by comparison, the average stock in the universe Dividend Channel’s hedge yields 3.7% and trades at a price-to-book ratio of 2.7. The report also cited Ares Capital Corporation’s strong quarterly dividend track record and favorable long-term multi-year growth rates in key fundamental data points.

The report stated, ”Dividend investors who approach investing from a value perspective are typically more interested in finding the strongest, most profitable companies that are also trading at an attractive valuation. This is what we seek to find by using our proprietary DividendRank formula, which ranks the coverage universe according to our various profitability and valuation criteria, to generate a list of the most “interesting” stocks, intended for investors as a source of ideas that merit further research.

The current annualized dividend paid by Ares Capital Corporation is $1.68/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 06/14/2022. Below is a table of ARCC’s long-term dividend history, which the report highlights as critically important. Indeed, studying a company’s past dividend history can be a great help in judging whether the most recent dividend is likely to continue.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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