Ares Dynamic Credit Announces $0.1125 Dividend on Ex-Dividend Date of September 22, 2025

Introduction

Ares Dynamic Credit Fund, Inc. (ARDC) continues to demonstrate a consistent approach to its dividend policy, aligning with its role as a business development company (BDC). As of September 22, 2025, the company announced a cash dividend of $0.1125 per share, with the ex-dividend date set for the same day. This announcement occurs in a market environment where fixed-income alternatives remain in demand and high-yield opportunities are being closely monitored by income-focused investors.

ARDC's dividend approach is relatively typical for a BDC, with a consistent payout history. However, its performance and structure differ from traditional REITs or equity-focused CEFs, offering a unique blend of credit risk and yield that appeals to a niche investor base.

Dividend Overview and Context

The dividend of $0.1125 per share reflects ARDC's ongoing commitment to returning capital to shareholders, in line with its investment objective of generating current income and capital appreciation through dynamic credit strategies. Key metrics include:

• Dividend Per Share (DPS): $0.1125 (cash)
• Ex-Dividend Date: September 22, 2025
• Expected Share Price Impact: On the ex-dividend date, the stock price is expected to adjust downward by approximately the amount of the dividend, assuming all else remains constant.

This adjustment is a standard feature of dividend-paying equities and should not be interpreted as a fundamental change in the company's value or prospects. Investors should also be mindful of the timing of their trades to ensure eligibility for this payout.

Backtest Analysis

The backtest results for ARDC highlight a robust and predictable dividend price behavior. Over 34 observed ex-dividend events, ARDC has demonstrated a strong price rebound trend, with an average recovery duration of approximately 4.77 days. Additionally, there is a 91% probability that the price will recover within 15 days of the ex-dividend date.

These results suggest that the market efficiently absorbs the dividend impact, minimizing the risk of prolonged price declines. The rapid normalization of price post-dividend may offer strategic opportunities for investors seeking to capitalize on short-term volatility.

Driver Analysis and Implications

The latest financial report data provides insight into the drivers behind ARDC's dividend decision:

• Total Revenue: $23,190,000
• Net Income Attributable to Common Shareholders: $12,143,000
• Earnings Per Share (EPS): $0.5087

The reported net income of $12.143 million is more than sufficient to support the $0.1125 dividend, with a clear indication that the company is maintaining a conservative payout ratio. This supports the sustainability of the dividend, especially in a macroeconomic environment where credit spreads and interest rates are evolving.

ARDC’s ability to maintain earnings in a changing interest rate environment reflects well on its asset management and portfolio performance. Its performance also suggests resilience amid broader market volatility, particularly in the credit segment.

Investment Strategies and Recommendations

For investors, the ARDC dividend represents both a strategic and tactical consideration:

• Short-Term Strategy: Investors looking to optimize yield might consider buying the stock in advance of the ex-dividend date or holding it through the date to receive the payout. Given the backtest results, it may also be prudent to exit or rebalance shortly after the dividend date to capture the rebound.

• Long-Term Strategy: ARDC remains a compelling option for those seeking regular income with a diversified credit portfolio. Investors should monitor the fund’s earnings and portfolio performance to ensure continued alignment with their long-term goals.

The recent dividend and strong earnings performance support a favorable outlook for the fund’s continued relevance in a fixed-income constrained market.

Conclusion & Outlook

Ares Dynamic Credit’s $0.1125 dividend on September 22, 2025, reinforces its track record of consistent returns and earnings. The strong backtest data and solid earnings underline the potential for limited price dislocation post-dividend, offering investors a reliable opportunity for income generation. With the next earnings release and potential future dividend announcements on the horizon, ARDC remains a closely watched entity in the credit space.