Ares Capital declared its latest quarterly dividend of $0.48 per share, extending its streak of dividend stability and growth to 17 years. The business development company reported second-quarter core earnings of $0.47 per share, flat from the prior quarter but down from $0.50 a year ago, leaving core earnings slightly below the dividend for the second consecutive quarter. However, net realized gains of $0.14 per share in the first half of the year and $1.38 per share of spillover income carried forward from last year provide a comfortable cushion. CEO Kort Schnabel noted historically low non-accruals and healthy portfolio performance, though a slow transaction environment weighed on core earnings. Ares Capital raised $1.2 billion in additional financing during the quarter, exited $2.9 billion in investments against $2.6 billion in new commitments, and holds $6 billion in liquidity with modest leverage, positioning it to grow its portfolio when deal activity picks up.
Ares Capital CorporationCore earnings slightly below dividend, but dividend maintained for 17 years with cushion from realized gains and spillover income.