Ares Capital Corporation (ARCC) provides a 10.8% dividend yield, significantly higher than the S&P 500's 1.2% average. As a business development company, it operates under unique regulatory and financial structures that may support its high yield.
- Ares Capital (ARCC) offers a 10.8% dividend yield, much higher than the S&P 500's 1.2%.
- As a BDC, Ares must distribute at least 90% of taxable income as dividends, contributing to its high yield.
- Ares has a $29.4 billion portfolio and is part of Ares Management, which manages $623 billion in assets.
- The company's core earnings of $2.01 per share in 2024 exceeded its dividend payout of $1.92 per share.
- Ares has maintained stable or growing dividends for over 16 years with minimal loan losses.
- The firm carries forward $1.38 per share of excess taxable income to support future dividends.
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