My Favorite High Yielding Stock is Struggling. Is ARCC's Dividend Safe? скачать в хорошем качестве

My Favorite High Yielding Stock is Struggling. Is ARCC's Dividend Safe?

My Portfolio & Connect:   / dividendbull   For a long time Ares Capital, ticker ARCC, has been considered the gold standard in the BDC sector. They're the oldest publicly listed BDC still in operation, having been launched back in 2004. Ares is also the largest business development company in the sector, having amassed almost 28 billion dollars' worth of investments in their portfolio. Despite suffering during the financial crisis, ARCC has delivered an average annualized return of over 13% since their IPO, beating the S&P 500. Ares Capital, as well as Main Street Capital, is often regarded as the best of the best when speaking of high-quality business development companies. And both of these stocks continue to be my favorites in this category of investments. I’ve been saying for years that Ares Capital is the best BDC for those who want a higher yield than what Main Street Capital has historically offered. But if you've been tracking the progress of this company, however, you might have noticed that this company's earnings have been falling over the past few quarters. Taking a look at their last four quarters, their net investment income has been going downward for more than a year. In Q3 of last year, Ares Capital reported core earnings of 58 cents per share, followed by 55 cents in Q4, 50 cents in Q1 of this year, and 50 cents again in Q2. With their stock paying a quarterly dividend of 48 cents per share, we can see that as time has gone on, their dividend has been less covered by their earnings. Dividend Bull PO Box 6913 Chandler, AZ 85246