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Ares Capital's NAV, Dividend, And Valuation Vs. 14 BDC Peers - Part 2 (Includes Q4 2020 Dividend Projection For All Peers)

Published Tue, 29 Sep 2020 02:06:43 -0400 on Seeking Alpha

Seeking AlphaDividend Ideas | Financials Ares Capital's NAV, Dividend, And Valuation Vs. 14 BDC Peers - Part 2 (Includes Q4 2020 Dividend Projection For All Peers)Sep. 29, 2020 2:06 AM ET|| About: Ares Capital (ARCC), Includes: AINV, BDCS, BIZD, BLK, FSK, GAIN, GAINL, GAINM, GBDC, MAIN, MCC, MCV, MCX, NEWT, NEWTI, NEWTL, OCSI, OCSL, ORCC, PBB, PBC, PFLT, PSEC, SLRC, TCPC, TSLXby: Scott KennedyScott Kennedy The REIT ForumThe #1 REIT Service Measured By Total ReturnsSummaryPart 2 of this article compares ARCC’s recent dividend per share rates, yield percentages, and several other highly unique dividend sustainability metrics to fourteen BDC peers.
This includes a comparative analysis of ARCC’s cumulative undistributed taxable income ratio, percentage of floating-rate debt investments, recent weighted average annualized yield, and weighted average interest rate on outstanding borrowings.
My current buy, sell, or hold recommendation, price target, and dividend sustainability projection for ARCC is stated in the “Conclusions Drawn” section of the article.
My Q4 2020 dividend projection for the fourteen other BDC peers within this analysis is also stated in the Conclusions Drawn section of the article (valuable information for readers).
I also provide a list of the BDC stocks I currently believe are undervalued (a buy recommendation), overvalued (a sell recommendation), or appropriately valued (a hold recommendation).
Focus of Article:
The focus of this two-part article is a very detailed analysis comparing Ares Capital Corp. (ARCC) to some of the company’s business development company (“BDC”) peers (all sector peers I currently cover). I am writing this two-part article due to the continued requests that such an analysis be specifically performed on ARCC and some of the company’s BDC peers at periodic intervals. For readers who just want the summarized conclusions/results, I would suggest to scroll down to the “Conclusions Drawn”... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
PROSPECT CAPITAL 6.71   16.8 0.40 0.72 10.76
APOLLO INVESTMENT 16.78   14.2 1.18 1.80 10.73
TCP CAPITAL 13.75   29.3 0.47 1.44 10.48
OAKTREE SPECIALTY LENDING 4.90   0.0 -1.39 0.50 10.02
PENNANTPARK FLOATING RATE CAPITAL 11.68   30.0 0.39 1.14 9.81
NEWTEK BUSINESS SERVICES 22.91   0.0 0.00 2.32 8.09
SOLAR CAPITAL 20.87   12.4 1.69 1.64 7.93
OAKTREE STRATEGIC INCOME 8.10   19.8 0.41 0.62 7.51
GOLUB CAPITAL BDC 18.55   15.7 1.18 1.28 6.89
GLADSTONE INVESTMENT 12.34   7.4 1.67 0.82 6.73
MEDLEY CAPITAL 2.61   0.0 -1.62 0.15 5.81
MAIN STREET CAPITAL 43.18   16.8 2.57 2.46 5.69
BLACKROCK 434.75   16.5 26.34 13.20 3.08


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