Ares Capital Corporation (NASDAQ:ARCC) is included among the 15 Extreme Dividend Stocks to Buy According to Hedge Funds.
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On October 29, RBC Capital lowered its price target on Ares Capital Corporation (NASDAQ:ARCC) to $23 from $24 while maintaining an Outperform rating following the company’s third-quarter results, according to a report by The Fly. The analyst noted that the company’s strong credit performance in Q3, along with management’s confidence in sustaining common dividends at current levels despite a softer interest rate outlook, addresses key concerns within the BDC sector.
Ares Capital Corporation (NASDAQ:ARCC) reported solid Q3 results, with core earnings of $0.50 per share, surpassing the regular quarterly dividend and delivering an annualized return on equity of 10%. This marked the 20th consecutive quarter in which core earnings exceeded the regular dividend. Net deployments reached $1.3 billion in Q3, more than double the previous quarter, while management remained highly selective in its investment decisions.
The company’s total portfolio at fair value stood at $28.7 billion at quarter-end, up from $27.9 billion in Q2 and $25.9 billion a year ago. As of October 23, 2025, total commitments for Q4 were $735 million, and the backlog hit a record $3 billion.
AAres Capital Corporation (NASDAQ:ARCC) is an American business development company that provides loans and equity financing to middle-market companies.
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