Ares Dynamic Credit Allocation Fund, Inc.
ARDCFinancial Services · Stock · monthly payer
Forward Yield
10.91%
Annual Dividend
$1.35
Payout Ratio
141%
5-Yr Growth
2.4%
Ex-Date
Aug 21, 2026
Frequency
Monthly
Summary
As of August 2026, Ares Dynamic Credit Allocation Fund, Inc. (ARDC) yields 10.91% ($1.35 per share annually), with a blended fair-value estimate of $23.10 — +85% upside, so it screens as undervalued. Dividend safety grade: D (45/100).
Is ARDC a good dividend stock?
MixedAres Dynamic Credit Allocation Fund, Inc. (ARDC) pays a monthly dividend yielding 10.91% ($1.35/yr), with 0 years of growth and a dividend-safety grade of D. The picture is mixed — the dividend pays, but safety or growth signals are weaker than ideal.
Advantages
Risks
- Cut its dividend in 2025
- Elevated payout ratio (141%)
- Very high yield can signal elevated risk
- Share price is down over the past 5 years
- Below-average dividend safety score
Key Data
- Dividend Yield
- 10.91%
- Payout Ratio
- 141%
- Annual Dividend
- $1.35
- 5-Yr Avg Growth
- 2.4%
- Ex-Dividend Date
- Aug 21, 2026
- Years of Growth
- 0
- Frequency
- monthly
- Beta
- —
- Market Cap
- $297.7M
- P/E Ratio
- 12.9
- 5-Yr Total Return
- -23%
- 52-Week Range
- $11.60 – $15.03
- Dividend Safety
- D · 45/100
- Ever Cut?
- Yes (2025)
Frequently Asked Questions
ARDC Price — Last 12 Months
Daily close
Price Return
1 Year
-15%
3 Years
-3%
5 Years
-23%
52-Week Range
$11.60 – $15.03
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is ARDC worth?
Undervaluedlow confidenceOur blended fair-value estimate for Ares Dynamic Credit Allocation Fund, Inc. is $23.10 per share, versus a market price of $12.48. That implies 85% of upside — a margin of safety of about 46%.
Fair Value
$23.10
Current Price
$12.48
Upside
+85%
Margin of Safety
46%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
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 -10.0% annual free-cash-flow growth. We model 2.9% — below our estimate, leaving room for upside if the business executes.
Assumptions: 9.3% discount rate (CAPM), 2.9% stage-1 growth, 2.5% terminal growth, $0.96 EPS, $1.35 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
ARDC Dividend Safety Score
Risky
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 |
|---|---|---|---|
| Jul 20, 2026 | — | $0.1130 | regular |
| Jun 22, 2026 | — | $0.1130 | regular |
| May 21, 2026 | — | $0.1130 | regular |
| Apr 20, 2026 | — | $0.1130 | regular |
| Mar 20, 2026 | — | $0.1130 | regular |
| Feb 20, 2026 | — | $0.1130 | regular |
| Jan 20, 2026 | — | $0.1130 | regular |
| Dec 22, 2025 | — | $0.1130 | regular |
| Nov 21, 2025 | — | $0.1130 | regular |
| Oct 20, 2025 | — | $0.1130 | regular |
| Sep 22, 2025 | — | $0.1130 | regular |
| Aug 21, 2025 | — | $0.1130 | regular |
| Jul 21, 2025 | — | $0.1130 | regular |
| Jun 20, 2025 | — | $0.1130 | regular |
Income Calculator
At $1.35 / yr per share
