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Ares CapitalARCC 57 5-Year Yield-on-Cost % is 12.03 as of Aug. 20, 2026, which is 6% above its 10-year median of 11.39. GuruFocus rates ARCC with a GF Score™ of 57/100 and a GF Value™ of $19.69 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,108 Asset Management companies, Ares Capital ranks better than 81.23% on this metric.
Ares Capital's yield on cost for the quarter that ended in Jun. 2026 was 12.03.
The historical rank and industry rank for Ares Capital's 5-Year Yield-on-Cost % or its related term are showing as below:
ARCC'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 9.07 Med: 11.39 Max: 21.73
Current: 12.03
During the past 13 years, Ares Capital's highest Yield on Cost was 21.73. The lowest was 9.07. And the median was 11.39.
ARCC's 5-Year Yield-on-Cost % is ranked better than 81.23% of 1108
companies
in the Asset Management industry
Industry Median: 6.33
vs ARCC: 12.03
Ares Capital (NAS:ARCC) 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
ARCC vs PS, IVZ, EQH: 5-Year Yield-on-Cost % Comparison
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 5-Year Yield-on-Cost % vs 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.
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
Ares Capital (ARCC) has a 5-Year Yield-on-Cost % of 12.03 as of Aug. 20, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Ares Capital and its competitors. This is near median its historical median of 11.39. Over the past decade, Ares Capital's 5-Year Yield-on-Cost % has ranged from 9.07 to 21.73. According to the industry distribution chart, Ares Capital ranks #208 out of 1108 companies in the Asset Management industry, placing it in the top 18.8%.
Is Ares Capital's 5-Year Yield-on-Cost % too high?
Ares Capital's current 5-Year Yield-on-Cost % of 12.03 is near median its 10-year median of 11.39. Over the past 10 years, this metric has ranged from a low of 9.07 to a high of 21.73. The Asset Management industry median 5-Year Yield-on-Cost % is 6.33. Ares Capital's value of 12.03 is 90% above this industry median. Based on the distribution chart, Ares Capital ranks #208 out of 1108 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Ares Capital has a GF Score™ of 57/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ares Capital's 5-Year Yield-on-Cost % compare to PS and IVZ?
According to the Asset Management industry distribution chart, Ares Capital ranks #208 out of 1108 companies for 5-Year Yield-on-Cost %. This places Ares Capital in the top 19% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 6.33. Ares Capital's value of 12.03 is 90% above this benchmark. Historically, Ares Capital's own 5-Year Yield-on-Cost % has ranged from 9.07 to 21.73 over the past decade. While the company's 10-year median is 11.39 vs. the industry median of 6.33, Ares Capital has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for an Asset Management company?
The median 5-Year Yield-on-Cost % among Asset Management companies is 6.33, based on 1,108 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ares Capital's current 5-Year Yield-on-Cost % of 12.03 is 90% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Ares Capital and its competitors. For the Asset Management industry, the median 5-Year Yield-on-Cost % is 6.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Capital's current 5-Year Yield-on-Cost % is 12.03, which is near median its own 10-year median of 11.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ares Capital stock overvalued right now?
Based on GuruFocus' analysis, Ares Capital (ARCC) is currently considered Fairly Valued. The stock's GF Value™ is $19.69, compared to a current price of $19.80 — trading 0.6% above its estimated fair value. The current 5-Year Yield-on-Cost % is 12.03, which is near median its 10-year median of 11.39 and 90% above the Asset Management industry median of 6.33. Ares Capital's overall GF Score™ is 57/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Ares Capital (ARCC), the current 5-Year Yield-on-Cost % is 12.03 as of Aug. 20, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ares Capital (ARCC) Overvalued in 2026?
Based on GuruFocus' analysis, Ares Capital stock appears to be overvalued.
The current stock price of $19.80 is trading 0.6% above its estimated GF Value™ of $19.69.
GuruFocus considers Ares Capital to be Fairly Valued.
Key valuation signals for ARCC:
5-Year Yield-on-Cost %: 12.03 (near median its 10-year median of 11.39)
GF Value™: $19.69 vs. price of $19.80 (0.6% above fair value)
Industry Position: 90% above the Asset Management median (#208 of 1108)
No single metric tells the full story. See the ARCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 in first lien senior secured loans (including unitranche loans, which are loans that combine both senior and subordinated debt, generally in a first lien position) and second lien senior secured loans. In addition to senior secured loans, the company also invests in subordinated loans and preferred equity, it also makes common equity investments.
57GF Score
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