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Ares Capital posts 2.3% NAV return in Q3, its best in a year, with strong dividend yield but high valuation limits buying interest.

Company Fundamentals
09 Nov 2026, 18:48 WIB
Seeking Alpha
View Source
Bullish
Ares Capital posts 2.3% NAV return in Q3, its best in a year, with strong dividend yield but high valuation limits buying interest.

Ares Capital (ARCC) reported a 2.3% net asset value (NAV) return in the third quarter, marking its strongest quarterly performance in the past year. The recent acquisition of MFIC adds valuable diversification to ARCC's portfolio and is expected to modestly boost core earnings. Despite a high dividend yield of 10%, coverage remains below 100%, though rising net investment income and a significant spillover help maintain dividend stability. Due to ARCC's elevated valuation compared to peers, investors are advised to wait for a more attractive entry point before buying.

Ares Capital Corporation (ARCC) trades at USD 19.27 on Pluang as of Nov 10, 2026 00:01 WIB, showing a modest 0.73% increase in the last day. The stock holds a dividend yield of 10.04% and a market cap of $13.82 billion. This steady trading aligns with the company's recent strong quarterly NAV return and portfolio diversification efforts highlighted in the news.

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