Ares Capital, a leading investment firm in the business development company (BDC) sector, pays its dividends on a quarterly basis. This means that investors holding shares of Ares Capital can expect to receive dividend payments every three months.
Dividend Amount and Yield
The annual dividend payment per share of Ares Capital is $1.92, which translates to a forward yield of 9.57% based on the current stock price. This percentage indicates the return on investment that investors can expect to receive through dividend payments over the course of a year.
Ex-Dividend Date
For investors looking to receive the upcoming dividend payment from Ares Capital, it is important to be aware of the ex-dividend date. This date determines whether an investor is eligible to receive the dividend by holding the stock on that specific day.
Monthly vs. Quarterly Dividends
While Ares Capital does not pay a monthly dividend like some other investment options, the quarterly dividend payments can still provide a steady source of income for investors. Quarterly dividends offer the advantage of predictability and consistency in dividend payouts.
Benefits of Quarterly Dividend Payments
For investors who rely on dividend income to supplement their investment returns, quarterly dividend payments can offer distinct advantages. The regularity of quarterly payments allows investors to plan their finances more effectively and budget for their income stream.
Considerations for Investors
Investors considering Ares Capital for its dividend payment schedule should take into account their own financial goals and preferences. While monthly dividend payments may be attractive for some investors seeking more frequent income, the quarterly dividends from Ares Capital can still provide a reliable source of cash flow.
Long-Term Investment Strategy
When evaluating the dividend payment frequency of Ares Capital, investors should also consider their long-term investment strategy. Quarterly dividends can be advantageous for investors focused on building wealth over time and reinvesting dividends for compound growth.
Conclusion
Ultimately, while Ares Capital does not pay a monthly dividend, the quarterly dividend payments offer a viable option for investors seeking regular income from their investment. By understanding the dividend payment schedule of Ares Capital and considering their own financial objectives, investors can make informed decisions about their investment strategy.
