■ Announcement · July 30, 2026
Ares Capital Extends Dividend Streak to 17 Years; Q2 Core Earnings Below Payout
Ares Capital declared its latest $0.48 quarterly dividend, extending its streak to 17 years. Q2 core earnings of $0.47 per share fell short of the payout, but spillover income and net gains provide a cushion.
Dividend Streak Reaches 17 Years
Ares Capital (NASDAQ: ARCC) has declared its regular quarterly dividend of $0.48 per share, marking 17 consecutive years of stable or growing dividends. The business development company (BDC) is one of the few in its sector that has not reduced its payout over that period.
Q2 Earnings Report
For the second quarter of 2025, Ares Capital reported core earnings of $0.47 per share, unchanged from the first quarter and down from $0.50 per share a year earlier. Core earnings fell slightly below the current dividend rate for the second consecutive quarter. However, the company recorded a net realized gain of $0.01 per share in Q2, following a $0.15 per share gain in Q1, bringing the year-to-date net gain to $0.14 per share. Combined with $1.38 per share of spillover income carried forward from 2024, total taxable income comfortably covers the dividend.
CEO Kort Schnabel described the quarter as solid, with consistent core earnings, healthy portfolio performance, and historically low levels of non-accruing loans and problem assets. The company continues to operate in a slower transaction environment, which has weighed on core earnings growth.
Portfolio and Capital Position
Ares Capital's investment activity remained selective. During Q2, the company exited $2.9 billion in investments while committing $2.6 billion to new opportunities. It raised $1.2 billion in additional financing during the quarter, contributing to $6 billion in total liquidity. Leverage remains modest, providing flexibility to grow the portfolio when market conditions improve.
The company's scale, stable capital base, and long-standing borrower relationships support its ability to deploy capital selectively. Ares Capital's dividend history is available on its dividend history page, and investors can use the ARCC dividend calculator to estimate future income.
What It Means for Income Investors
Ares Capital's core earnings have temporarily dipped below its dividend, but the company's substantial spillover income and net realized gains provide a buffer. Its strong liquidity and low leverage position it to resume portfolio growth when the transaction environment accelerates. These factors support the sustainability of the dividend, though the BDC remains a higher-risk, high-yield investment relative to other income options.
Reporting based on: The Globe and Mail. Figures verified against market data where available.