Dividend Information About Ares Capital: Everything You Need to Know Before Its Ex-Dividend Date on Sep 15, 2025

Generated by AI AgentAinvest Dividend Digest
Friday, Sep 12, 2025 7:08 am ET2min read
ARCC--
Aime RobotAime Summary

- Ares Capital (ARCC) declared a $0.48/share quarterly dividend, payable on Sep 30, 2025, with an ex-dividend date of Sep 15.

- Institutional investors increased holdings by 9.7%-320.7%, reflecting confidence in ARCC's operational stability and long-term potential.

- Analysts gave a "Moderate Buy" rating with $22.86 price target, though falling interest rates could threaten dividend sustainability.

- ARCC maintains 8.54% annualized yield and strong financials (44.94% net margin, 10.48% ROE), but faces credit market sensitivity.

Ares Capital Corporation (ARCC) has announced a quarterly cash dividend of $0.48 per share, to be paid on Sep 30, 2025, with an ex-dividend date set for Sep 15, 2025. This declaration was made on Jul 29, 2025, and the payout represents an increase compared to the 10-year average dividend per share of $0.3435. The most recent dividend was also $0.48 per share, paid on Jun 30, 2025, and it was also a cash dividend. This consistent payout reflects ARCC’s ongoing commitment to returning value to shareholders through dividends, with an estimated annualized yield of 8.54% based on the current stock price of $22.48. Investors should note that any purchase made after the ex-dividend date of Sep 15, 2025, will not be eligible to receive this dividend.

Over the past week, Ares CapitalARCC-- has remained in focus amid shifting market dynamics and evolving analyst sentiment. Institutional investors have increased their stakes in the company, with several major firms boosting holdings significantly. Notably, Challenger Wealth Management raised its position by 9.7%, and Continuum Advisory LLC and Archer Investment Corp increased their investments by 320.7% and 281.3%, respectively. These moves highlight growing confidence in the company’s long-term potential and operational stability. Additionally, ARCCARCC-- recently reported earnings per share of $0.50, slightly below the consensus estimate of $0.51, but its strong net margin of 44.94% and return on equity of 10.48% remain positive indicators of its financial health.

Analysts have remained cautiously optimistic about Ares Capital’s future. The company has received a “Moderate Buy” rating, with an average price target of $22.86, reflecting upgraded outlooks from several leading brokerage firms. Despite recent stock price declines—ARCC fell 1.11% on Sept 10, 2025, closing at $22.24—the stock has shown resilience amid broader market gains. The stock has a current market capitalization of $15.77 billion, with institutional ownership standing at 27.38%. The company’s balance sheet remains solid, with a quick and current ratio of 1.14 and a debt-to-equity ratio of 1.01. These fundamentals support its ability to maintain dividend payments and navigate economic fluctuations. However, analysts have also noted that falling interest rates could impact ARCC’s income and, by extension, its ability to sustain its dividend in the long term.

In summary, Ares Capital continues to be a focal point for investors seeking high-yield opportunities in the business development company (BDC) sector. With a strong institutional backing, improving analyst ratings, and a consistent dividend history, ARCC presents a compelling case for long-term investors. However, its performance remains sensitive to interest rate movements and broader credit market conditions. The upcoming ex-dividend date on Sep 15, 2025, is the final day for investors to purchase shares and still receive this quarter’s $0.48 dividend. Any purchase made after this date will not be eligible to share in the payout.

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