ARDC: A Lot To Offer Income Investors, Regardless Of Interest Rate Direction

Power Hedge
Investing Group Leader

Summary

  • Ares Dynamic Credit Allocation Fund, Inc. offers a competitive 11.02% distribution yield, appealing to income-focused investors.
  • The ARDC closed-end fund's performance has been stable, outperforming the Bloomberg U.S. Aggregate Bond Index over the past three months.
  • The fund's allocation to both fixed-rate bonds and floating-rate loans allows it to capitalize on changing interest rates.
  • The fund's 11.02% current yield is fully covered by net investment income, which should ensure that it is reasonably sustainable.
  • ARDC is currently trading at an attractive discount on net asset value.
  • This idea was discussed in more depth with members of my private investing community, Energy Profits in Dividends. Learn More »

Large fragment of 100 hundred dollars bill banknote. Old American money banknote, vintage retro, usd

Ilja Enger-Tsizikov

The Ares Dynamic Credit Allocation Fund, Inc. (NYSE:ARDC) is a very popular closed-end fund, or CEF, that is frequently purchased by those individuals who are seeking to earn a very high level of income from the assets

At Energy Profits in Dividends, we seek to generate a 7%+ income yield by investing in a portfolio of energy stocks while minimizing our risk of principal loss. By subscribing, you will get access to our best ideas earlier than they are released to the general public (and many of them are not released at all) as well as far more in-depth research than we make available to everybody. In addition, all subscribers can read any of my work without a subscription to Seeking Alpha Premium!

We are currently offering a two-week free trial for the service, so check us out!


This article was written by

Power Hedge
15.65K Followers

Power Hedge has been covering both traditional and renewable energy since 2010. He targets primarily international companies of all sizes that hold a competitive advantage and pay dividends with strong yields.

He is the leader of the investing group Energy Profits in Dividends where he focuses on generating income through energy stocks and CEFs while managing risk through options. He also provides micro and macro-analysis of both domestic and international energy companie. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ARDC, AIF 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About ARDC Ticker

SymbolLast Price% Chg
Expense Ratio
Div Frequency
Div Rate
Yield
Assets (AUM)
Volume
Compare to Peers

More on ARDC

Related Stocks

SymbolLast Price% Chg
ARDC
--
Compare

Trending Analysis

Trending News