Ares Dynamic Credit Allocation FundARDC -0.31%45 5-Year Yield-on-Cost % is 12.74 as of Jul. 11, 2026, which is 16% above its 10-year median of 10.94. GuruFocus rates ARDC with a GF Score™ of 45/100 and a GF Value™ of $8.66 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,113 Asset Management companies, Ares Dynamic Credit Allocation Fund ranks better than 83.29% on this metric.
The historical rank and industry rank for Ares Dynamic Credit Allocation Fund's 5-Year Yield-on-Cost % or its related term are showing as below:
ARDC'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.76 Med: 10.94 Max: 15.81
Current: 12.74
During the past 9 years, Ares Dynamic Credit Allocation Fund's highest Yield on Cost was 15.81. The lowest was 0.76. And the median was 10.94.
ARDC's 5-Year Yield-on-Cost % is ranked better than 83.29% of 1113
companies
in the Asset Management industry
Industry Median: 6.39
vs ARDC: 12.74
Ares Dynamic Credit Allocation Fund (NYSE:ARDC) 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 Dynamic Credit Allocation Fund 5-Year Yield-on-Cost % Related Terms
ARDC vs KWY, HRZN, KF: 5-Year Yield-on-Cost % Comparison
For the Asset Management subindustry, Ares Dynamic Credit Allocation Fund'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 Dynamic Credit Allocation Fund 5-Year Yield-on-Cost % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Ares Dynamic Credit Allocation Fund's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Ares Dynamic Credit Allocation Fund's 5-Year Yield-on-Cost % falls into.
Ares Dynamic Credit Allocation Fund 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.
Ares Dynamic Credit Allocation Fund (ARDC) has a 5-Year Yield-on-Cost % of 12.74 as of Jul. 11, 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 Dynamic Credit Allocation Fund and its competitors. This is 16% above median its historical median of 10.94. Over the past decade, Ares Dynamic Credit Allocation Fund's 5-Year Yield-on-Cost % has ranged from 0.76 to 15.81. According to the industry distribution chart, Ares Dynamic Credit Allocation Fund ranks #186 out of 1113 companies in the Asset Management industry, placing it in the top 16.7%.
Is Ares Dynamic Credit Allocation Fund's 5-Year Yield-on-Cost % too high?
Ares Dynamic Credit Allocation Fund's current 5-Year Yield-on-Cost % of 12.74 is 16% above median its 10-year median of 10.94. Over the past 10 years, this metric has ranged from a low of 0.76 to a high of 15.81. The Asset Management industry median 5-Year Yield-on-Cost % is 6.39. Ares Dynamic Credit Allocation Fund's value of 12.74 is 99.4% above this industry median. Based on the distribution chart, Ares Dynamic Credit Allocation Fund ranks #186 out of 1113 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Ares Dynamic Credit Allocation Fund has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ares Dynamic Credit Allocation Fund's 5-Year Yield-on-Cost % compare to KWY and HRZN?
According to the Asset Management industry distribution chart, Ares Dynamic Credit Allocation Fund ranks #186 out of 1113 companies for 5-Year Yield-on-Cost %. This places Ares Dynamic Credit Allocation Fund in the top 17% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 6.39. Ares Dynamic Credit Allocation Fund's value of 12.74 is 99.4% above this benchmark. Historically, Ares Dynamic Credit Allocation Fund's own 5-Year Yield-on-Cost % has ranged from 0.76 to 15.81 over the past decade. While the company's 10-year median is 10.94 vs. the industry median of 6.39, Ares Dynamic Credit Allocation Fund 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 6.39, based on 1,113 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 Dynamic Credit Allocation Fund's current 5-Year Yield-on-Cost % of 12.74 is 99.4% 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 Dynamic Credit Allocation Fund and its competitors. For the Asset Management industry, the median 5-Year Yield-on-Cost % is 6.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Dynamic Credit Allocation Fund's current 5-Year Yield-on-Cost % is 12.74, which is 16% above median its own 10-year median of 10.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ares Dynamic Credit Allocation Fund stock overvalued right now?
Based on GuruFocus' analysis, Ares Dynamic Credit Allocation Fund (ARDC) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.66, compared to a current price of $12.78 — trading 47.6% above its estimated fair value. The current 5-Year Yield-on-Cost % is 12.74, which is 16% above median its 10-year median of 10.94 and 99.4% above the Asset Management industry median of 6.39. Ares Dynamic Credit Allocation Fund's overall GF Score™ is 45/100 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 Dynamic Credit Allocation Fund (ARDC), the current 5-Year Yield-on-Cost % is 12.74 as of Jul. 11, 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 Dynamic Credit Allocation Fund (ARDC) Overvalued in 2026?
Based on GuruFocus' analysis, Ares Dynamic Credit Allocation Fund stock appears to be overvalued.
The current stock price of $12.78 is trading 47.6% above its estimated GF Value™ of $8.66.
GuruFocus considers Ares Dynamic Credit Allocation Fund to be Significantly Overvalued.
Key valuation signals for ARDC:
5-Year Yield-on-Cost %: 12.74 (16% above median its 10-year median of 10.94)
GF Value™: $8.66 vs. price of $12.78 (47.6% above fair value)
Industry Position: 99.4% above the Asset Management median (#186 of 1113)
No single metric tells the full story. See the ARDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ares Dynamic Credit Allocation Fund Business Description
Ares Dynamic Credit Allocation Fund Inc is a closed-end, diversified, management investment company. The Fund's investment objective is to seek an attractive risk adjusted level of total return, through current income and, secondarily, through capital appreciation. The Fund invests in a broad, dynamically managed portfolio of (i) senior secured loans, (ii) corporate bonds, (iii) other fixed-income instruments, and (iv) securities issued by entities commonly referred to as collateralized loan obligations and other asset-backed securities.
45GF Score
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