Ares Capital’s (NASDAQ: ARCC) main draw is its monster dividend yield.
At more than 10%, it’s nearly 10 times higher than the S&P 500’s yield
The business development company (BDC) has paid a stable-to-growing dividend for 67 consecutive quarters. It has endured its share of tough times over the years, including over the past quarter. Here’s a look back at its rough quarter and whether the high-yielding dividend stock is still a buy.
A rough patch Ares Capital’s core earnings dipped in the first quarter to $0.47 per share, down from $0.50 per share in the fourth quarter and the first quarter of last year. That pushed them down below the BDC’s quarterly dividend level of $0.48 per share. Despite that, Ares announced its next dividend, payable at the end of June.