This company released a robust set of financials for the second quarter. It continued to cover its dividend payout with net investment income in Q2 2019. Portfolio quality remained very high. Shares are probably fully valued by now, have an unappealing risk/reward near 52-week highs. I continue to see outsized downside risks for cyclical BDCs including this company.
Ares Capital Corp. (ARCC) released decent second quarter results at the end of July. The business development company once again covered its dividend payout with net investment income and reported an improvement in credit quality in the second quarter. That being said, though, I am cautious about the economic trajectory in the United States now that the Fed is lowering interest rates. Ares Capital Corp.'s shares are probably about fully valued today and have an unattractive risk/reward for new investors.
Source: Seeking Alpha
Related Articles:
- 5 Dividend Stocks For The Ultimate In Deferred Gratification
- The Most Important Thing To Consider When Selecting A Dividend Stock
- 5 Healthcare Stocks With Growing Dividends Yielding In Excess of 2%
- 3 Powerful Concepts for Compounding Wealth with Dividend Stocks
- Why We Are Dividend Growth Investors
8.6%-Yield, But The Air Is Getting Thinner
Posted by D4L | Thursday, September 05, 2019 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
In short, dividend-bearing stocks are one of the smartest approaches stock investors have available currently. The same is true in strong ec...
-
Finding cheap dividend stocks is critical for another reason. By the time the Federal Reserve meets for the second time in 2023, the central...
-
Investing in passive income can allow you to make money with minimal portfolio management. There are many types of investments to make passi...
-
Many companies make very predictable fixed dividend payments each quarter. When they do, their investors have a pretty good idea of how much...
-
As 2022 wraps up, many investors are likely looking for ways to position their portfolio for more macroeconomic uncertainty next year. After...
-
If your growth-investing days are over (or nearly so) and you're more interested in steady income, start your search with all-weather st...
-
Dividends drive significant returns for Berkshire Hathaway's portfolio. One common theme of Warren Buffett's Berkshire Hathaway is d...
-
With inflation appearing to have peaked and fears of a recession dimming somewhat, investors have some positive catalysts to look forward to...
-
Dividends can be an underrated source of income for investors. With so much volatility in the stock market right now, it can be comforting t...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.