■ Announcement · July 30, 2026
Ares Capital Extends Dividend Streak to 17 Years with Q2 Results
Ares Capital reported Q2 core earnings of $0.47 per share, below its $0.48 dividend, but spillover income and net gains provide a cushion.
Q2 Earnings and Dividend Update
Ares Capital (ARCC) reported second-quarter core earnings of $0.47 per share, flat with the prior quarter but down from $0.50 per share a year ago. The company declared a quarterly dividend of $0.48 per share, maintaining its payout and extending its streak of stable or growing dividends to 17 years. Core earnings fell slightly short of the dividend for the second consecutive quarter.
Dividend Coverage and Financial Position
Despite core earnings not fully covering the dividend, Ares Capital has other sources of income. In the first half of 2024, the company recorded net realized gains of $0.14 per share (a $0.15 gain in Q1 and a $0.01 loss in Q2). Combined with core earnings, total earnings per share exceeded the dividend. Additionally, Ares Capital entered 2024 with $1.38 per share of spillover income from 2023, providing a substantial cushion. The company also maintains $6 billion in liquidity and modest leverage, supporting its ability to continue paying dividends.
CEO Kort Schnabel noted in the earnings release that the company reported solid results with consistent core earnings, healthy portfolio performance, and historically low levels of non-accruing loans and problem assets. However, a slower transaction environment continues to weigh on core earnings.
Portfolio Activity and Outlook
During the second quarter, Ares Capital exited $2.9 billion in investments while committing $2.6 billion, resulting in net outflows. The company raised $1.2 billion in additional financing, positioning it to grow its portfolio when opportunities arise. With its scale, stable capital base, and long-standing borrower relationships, Ares Capital remains selective in the current environment but is well-positioned for future growth.
What It Means for Income Investors
Ares Capital's dividend history shows 17 years of stability and growth, supported by spillover income and net gains. While core earnings currently lag the payout, the company's financial flexibility and track record suggest the dividend remains sustainable. The stock yields over 10%, reflecting the higher-risk nature of BDC investments.
Reporting based on: The Motley Fool. Figures verified against market data where available.