Ares Capital (Ares Capital) 5-Year Yield-on-Cost % : 0.00 (As of May. 13, 2024)

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What is Ares Capital 5-Year Yield-on-Cost %?

Ares Capital's yield on cost for the quarter that ended in Mar. 2024 was 0.00.

The historical rank and industry rank for Ares Capital's 5-Year Yield-on-Cost % or its related term are showing as below:

During the past 13 years, Ares Capital's highest Yield on Cost was 21.32. The lowest was 8.89. And the median was 11.17.

AFC's 5-Year Yield-on-Cost % is not ranked ^*
in the Asset Management industry.
Industry Median: 5.925
* Ranked among companies with meaningful 5-Year Yield-on-Cost % only.

Competitive Comparison of Ares Capital's 5-Year Yield-on-Cost %

For the Asset Management subindustry, Ares Capital's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Ares Capital's 5-Year Yield-on-Cost % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Ares Capital's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where Ares Capital's 5-Year Yield-on-Cost % falls into.

Ares Capital 5-Year Yield-on-Cost % Calculation

Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of Ares Capital is calculated as

Yield-on-Cost

Dividend Yield %

Dividend Growth Rate)^5

Ares Capital (NYSE:AFC) 5-Year Yield-on-Cost % Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.

Ares Capital 5-Year Yield-on-Cost % Related Terms

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Ares Capital (Ares Capital) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Ares Capital Corp (NYSE:AFC) » Definitions » 5-Year Yield-on-Cost %

Comparable Companies

Traded in Other Exchanges

ARCC:USA 9A2:Germany

Address

245 Park Avenue, 44th Floor, New York, NY, USA, 10167

Website

https://www.arescapitalcorp.com

Ares Capital Corp is a United States-based closed-ended specialty finance company. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. The company focuses on investing primarily in U.S. middle-market companies with investment opportunities as well as in larger companies. Its portfolio comprises of first lien senior secured loans, second lien senior secured loans, and mezzanine debt (subordinated unsecured loan), which may include equity components that are diversified by industry and sector. The company may invest in preferred and common equity investments to a lesser proportion. Its revenue mainly consists of interest and dividend income received from the investment made.