Posted 3/25/2024, 5:30:51 PM
Ares Capital Upgraded to Buy on Attractive Dividends and Uptrend Potential
- Ares Capital is a leading business development company (BDC) with a well-diversified portfolio in direct lending
- It has benefited from rising interest rates due to its large exposure to floating-rate loans
- Valuation has normalized after a period of dislocation; forward dividend yield is 9.7%
- Uptrend remains intact, suggesting confidence in Ares' market leadership and earnings
- Rating upgraded to Buy given attractive dividends and price chart showing robust uptrend