Ares Capital Corporation
ARCCFinancial Services · Stock · quarterly payer
Forward Yield
10.02%
Annual Dividend
$1.92
Payout Ratio
118%
5-Yr Growth
3.7%
Ex-Date
Jun 15, 2026
Frequency
Quarterly
Summary
As of July 2026, Ares Capital Corporation (ARCC) yields 10.02% ($1.92 per share annually), with a blended fair-value estimate of $23.64 — +23% upside, so it screens as undervalued. Dividend safety grade: C (57/100).
Is ARCC a good dividend stock?
MixedAres Capital Corporation (ARCC) pays a quarterly dividend yielding 10.02% ($1.92/yr), with 0 years of growth and a dividend-safety grade of C. The picture is mixed — the dividend pays, but safety or growth signals are weaker than ideal.
Advantages
Risks
- Cut its dividend in 2020
- Elevated payout ratio (118%)
- Very high yield can signal elevated risk
- Share price is down over the past 5 years
Key Data
- Dividend Yield
- 10.02%
- Payout Ratio
- 118%
- Annual Dividend
- $1.92
- 5-Yr Avg Growth
- 3.7%
- Ex-Dividend Date
- Jun 15, 2026
- Years of Growth
- 0
- Frequency
- quarterly
- Beta
- 0.62
- Market Cap
- $13.6B
- P/E Ratio
- 11.8
- 5-Yr Total Return
- -4%
- 52-Week Range
- $17.40 – $23.30
- Dividend Safety
- C · 57/100
- Ever Cut?
- Yes (2020)
Frequently Asked Questions
ARCC Price — Last 12 Months
Daily close
Price Return
1 Year
-14%
3 Years
-2%
5 Years
-4%
52-Week Range
$17.40 – $23.30
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is ARCC worth?
Undervaluedmedium confidenceOur blended fair-value estimate for Ares Capital Corporation is $23.64 per share, versus a market price of $19.17. That implies 23% of upside — a margin of safety of about 19%.
Fair Value
$23.64
Current Price
$19.17
Upside
+23%
Margin of Safety
19%
How we get there
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about 7.0% annual free-cash-flow growth. We model -4.3% — so the price already assumes faster growth than we think is likely.
Assumptions: 7.4% discount rate (CAPM), -4.3% stage-1 growth, 2.5% terminal growth, $1.63 EPS, $1.92 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
ARCC Dividend Safety Score
Borderline
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Jun 15, 2026 | — | $0.4800 | regular |
| Mar 13, 2026 | — | $0.4800 | regular |
| Dec 15, 2025 | — | $0.4800 | regular |
| Sep 15, 2025 | — | $0.4800 | regular |
| Jun 13, 2025 | — | $0.4800 | regular |
| Mar 14, 2025 | — | $0.4800 | regular |
| Dec 13, 2024 | — | $0.4800 | regular |
| Sep 13, 2024 | — | $0.4800 | regular |
| Jun 14, 2024 | — | $0.4800 | regular |
| Mar 14, 2024 | — | $0.4800 | regular |
| Dec 14, 2023 | — | $0.4800 | regular |
| Sep 14, 2023 | — | $0.4800 | regular |
| Jun 14, 2023 | — | $0.4800 | regular |
| Mar 14, 2023 | — | $0.4800 | regular |
Income Calculator
At $1.92 / yr per share
