Ares Capital Maintains $0.48 Quarterly Dividend Despite Stagnant Growth
Ares Capital (NASDAQ:ARCC) has maintained a consistent quarterly dividend of $0.48 per share for 12 consecutive quarters, with no increase since March 2023. Core EPS in Q1 and Q2 2026 fell to $0.47 each, slightly below the payout level as non-accruals rose to 2.4%. Management cites a buffer of $1.38 per share from spillover income but warns that if non-accruals exceed 3%, dividend sustainability could be at risk. The company operates under regulatory requirements for business development companies, mandating the distribution of most taxable income to shareholders. While the current payout remains stable and reliable, it has not grown in line with inflation or rising costs. Analysts have noted that ARCC did not make a recent list of top stocks to buy, raising questions about its long-term growth potential despite consistent dividend payments. The key concern for investors is whether Core EPS can rise above $0.48 and if new loan commitments will improve yields from the current 9.1% level post-Q3 2025.
Tickers: $ARCC
Topics: BDC performance dividends earnings