Ares Capital reported second-quarter net investment income of $0.50 per share, leaving only a two-cent cushion over its $0.48 quarterly dividend. The business development company's net investment income has declined from $2.28 per share in 2023 to $2.02 per share in 2025, narrowing dividend coverage. Non-accrual loans rose to 2.4% of the portfolio in the second quarter from 1.8% at the start of the year, adding to concerns. A recession could further pressure net investment income and force a dividend cut, given the reduced coverage.
Ares Capital CorporationNet investment income fell to $0.50 per share, barely covering the $0.48 dividend, with non-accrual loans rising and coverage thinning.
