Analysis: Ares Capital's Stock Price Decline Pushes Dividend Yield Near 10%, Rising Non-Performing Loans Spark Concern
The Motley Fool's analysis indicates that Ares Capital (ARCC) stock price has fallen approximately 10% from its 52-week high to around $20 per share, bringing its dividend yield close to 10% (recently about 9.6%). The stock price decline is attributed to factors such as rising interest rates, decreasing core earnings, and an increase in non-accruals. The company's second-quarter report showed that non-accruals accounted for 2.4% of total investments, up from the previous 2.1%. Although still below its historical average of 3%, this upward trend has raised concerns about the stability of future dividends.
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