Ares Capital Is Sliding And I Am Buying This 8% Yielding BDC

Aug. 01, 2022 9:00 AM ETAres Capital (ARCC)48 Comments
Steven Fiorillo profile picture
Steven Fiorillo
23.63K Followers

Summary

  • ARCC slid -3.58% yesterday upon news on an 8 million share public offering, and this could continue into Monday's trading session.
  • Investors should read through the public offering to see if they are in agreement with how ARCC's management will allocate the proceeds.
  • ARCC delivered a beat on its Q2 EPS and net investment income, which helped position ARCC to pay its 3rd consecutive special dividend on top of its quarterly dividend.
  • ARCC has just raised its dividend again, and after it's paid, ARCC will have paid $27.39 in dividends since it went public, which is 182.6% of its initial value IPO value.
  • I do much more than just articles at Barbell Capital: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Stock photo of an ascending staircase of coins on a blue background with a jar full of coins. Saving concept

Adrian Vidal

Shares of Ares Capital (NASDAQ:ARCC) slid more than -3% on 7/29 after news broke that ARCC would price 8 million shares in a public offering. The 8 million share offering came several days after ARCC beat

Shareholder Value

Ares Capital

Portfolio

Ares Capital

Portfolio EBITDA

Ares Capital

Dividends

Ares Capital

Core earnings

Ares Capital

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This article was written by

Steven Fiorillo profile picture
23.63K Followers
I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking Alpha or https://dividendincomestreams.substack.com/

Disclosure: I/we have a beneficial long position in the shares of ARCC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters.

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