Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about Ares Capital (ARCC) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Ares Capital currently has an average ...

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Analyst's Disclosure: I/we have a beneficial long position in the shares of ARCC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Join iREIT® on Alpha today to get the most in-depth research that includes REITs, mREIT, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Man ...

Providing alpha-generating investment ideas. I am an independent investor managing my family's portfolio, primarily via a Self Managed Super Fund. You can expect my articles to deliver a clearly structured, evidence-based thesis. But first and foremost, I encourage readers to judge me on my performance.I have a generalist approach as I explore, analyze and invest in any sector so long there is perceived alpha potential vs the S&P500. The typical holding period ranges between a few quarters to multiple years ...

Group 1 - Retail investors, often labeled as "dumb money," tend to underperform compared to market indices due to emotional attachment to their investments [1] - The article emphasizes the importance of creating a portfolio that generates income without the need for selling assets, which can alleviate stress associated with retirement investing [3] - The Income Method promoted in the article targets a yield of 9-10%, suggesting a focus on high dividend opportunities for investors [3]

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective. Bearing this in mind, let's now explore the average estimates of specific Ares Capital metrics that are commonly monitored and projected by Wall Street analysts. The consensus among analysts is that 'Dividend income' will reach $154.25 million. The estimate co ...

The high-yield BDC could be a safe haven investment in a stormy market.Ares Capital (ARCC 1.74%) is often considered a reliable income investment. It's the world's largest business development company (BDC), with a $26.8 billion portfolio at the end of 2024, and it pays out most of its profits as dividends. It currently pays a hefty forward dividend yield of 9.1%, and it has paid continuous dividends since its IPO in 2004. BDCs also need to pay out at least 90% of their taxable profits as dividends to maint ...

Samuel Smith has a diverse background that includes being lead analyst and Vice President at several highly regarded dividend stock research firms and running his own dividend investing YouTube channel. He is a Professional Engineer and Project Management Professional and holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and has a Masters in Engineering from Texas A&M with a focus on applied mathematics and machine learning.Samuel leads the High Yield Inve ...

Core Viewpoint - The current market downturn presents opportunities for income investors due to higher dividend yields and lower valuations across several stocks Group 1: Ares Capital - Ares Capital has a forward dividend yield of 9.42% and trades at a low forward earnings multiple of 9.6, making it attractive for income investors [2] - Despite being affected by market volatility, Ares Capital's shares are down by a double-digit percentage from their peak earlier this year [2] - The company has delivered approximately 70% greater total returns than the S&P 500 since its IPO in 2004, indicating strong long-term performance potential [4] Group 2: Enterprise Products Partners - Enterprise Products Partners offers a forward distribution yield exceeding 6.8% and has increased its distribution for 26 consecutive years [5] - The company trades at 10.3 times forward earnings, below the S&P 500 energy sector average of 13.4, suggesting a favorable valuation [6] - Enterprise's revenue is largely insulated from commodity price fluctuations, making it more stable during economic downturns [7] - Approximately 90% of the company's long-term contracts include inflation-based escalation provisions, providing additional revenue protection [8] Group 3: Pfizer - Pfizer's forward dividend yield is 7.72%, one of the highest since the Great Recession, with shares trading at 7.5 times forward earnings [9] - The stock has faced challenges, including declining COVID-19 vaccine sales and a looming patent cliff, but it also has several newer products with growing sales [10][11] - Pfizer has announced its 16th consecutive annual dividend increase, indicating confidence in maintaining its dividend policy [12] - Wall Street's consensus 12-month price target suggests nearly 35% upside potential for the stock [12]

Core Insights - Ares Capital (NASDAQ: ARCC) is identified as the largest Business Development Company (BDC) in the sector, with a Net Asset Value (NAV) approximately 9 times greater than the sector average and more than 2 times that of the second largest BDC, FS KKR Capital Corp [1] Company Overview - Ares Capital holds a dominant position in the BDC sector, showcasing significant financial strength through its NAV metrics [1] Industry Context - The BDC sector is characterized by varying NAVs, with Ares Capital setting a high benchmark compared to its peers, indicating a robust market position and potential for investment opportunities [1]