Ares Capital Announces First Quarter 2025 Dividend and Releases Fourth Quarter and Full Year 2024 Financial Results
Ares Capital Corporation (Ares Capital) recently announced that its Board of Directors has declared a dividend of $0.48 per share for the first quarter of 2025. This dividend is payable on March 31, 2025, to stockholders of record as of March 14, 2025. Alongside this announcement, Ares Capital also released its financial results for the fourth quarter and full year ended December 31, 2024.
Financial Highlights
The following table displays the operating results for the quarters and years ended December 31, 2024, and 2023:
| Q4-24 | Q4-23 | FY-24 | FY-23 | |
|---|---|---|---|---|
| Net Investment Income | $178.8 million | $175.1 million | $731.8 million | $707.9 million |
| Total Investment Income | $223.2 million | $217.8 million | $876.3 million | $841.1 million |
| Net Realized and Unrealized Gains (Losses) | $30.5 million | $32.5 million | $118.0 million | $123.8 million |
| Total Income | $253.7 million | $220.3 million | $1,095.1 million | $1,045.8 million |
| Net Income attributable to common stockholders | $119.3 million | $113.3 million | $455.9 million | $431.1 million |
Impact on Individual Investors
The declaration of a $0.48 per share dividend for the first quarter of 2025 by Ares Capital implies a dividend yield of approximately 3.7% based on the closing price of $12.72 per share on December 31, 2024. This dividend payout is a 2.1% increase compared to the first quarter 2024 dividend of $0.47 per share.
Impact on the World
Ares Capital’s announcement of a higher dividend for the first quarter of 2025 could have a positive impact on the broader economy, as increased dividends often translate to higher consumer spending. Moreover, it could potentially attract more investors to the business development company (BDC) sector, driving up demand for BDC stocks and contributing to the growth of the overall market.
Conclusion
Ares Capital’s announcement of a higher dividend for the first quarter of 2025 and the release of its fourth quarter and full year 2024 financial results indicate a strong performance for the company. The dividend increase, along with the solid financial results, is expected to positively impact individual investors through a higher yield and the potential for capital appreciation. Additionally, the increased dividend could contribute to the growth of the broader economy and the BDC sector.
- Ares Capital Corporation declares a first quarter 2025 dividend of $0.48 per share.
- The dividend is payable on March 31, 2025, to stockholders of record as of March 14, 2025.
- Financial results for the fourth quarter and full year ended December 31, 2024, were also released.
- Operating results showed an increase in net investment income, total investment income, and total income compared to the previous year.
- The higher dividend payout could lead to increased consumer spending and attract more investors to the BDC sector.
