2Wk·

Ares down 8%

Hello, am with $ARCC (+0%) down 8% since purchase (€18.85), hope for a medium-term recovery, the dividends are only a small consolation, am invested with approx. €5,800. How do you rate the situation?

12 Comments

Smudo@Smudeo

2Wk

Holding is a dividend value. Annual returns of 10% are better than overnight money or fixed-term deposits. If you want a share with an annual double-digit price, $ARCC is the right place for you.

•

Wolf@Eurosammler

2Wk

@Smudeo I've already taken a break ;-), but I won't sell as long as the dividend remains so high. What do you think of the $HTGC share as an alternative?

•

Smudo@Smudeo

2Wk

@Eurosammler I don't know, but with a turnover of only 300 million, this is a very small figure.

••

Frank@schlimmschlimm

2Wk

I feel the same way. The share is oversold according to the RSI. JPMorgan rates Ares Capital 'overweight' on 01.10.2025 - price target: $22.00 From what I could read, fundamentally ARCC remains a dividend giant with a stable business model and strong analyst support. Unfortunately, the technical data signal further pressure and little momentum in the short term. Sales growth also turned negative in the last quarter at -1.3 % after a strong previous year (+14.4 %). When will the turnaround come, good question! It is probably currently an oversold stock with a high payout - according to analyses, the technical chart picture probably calls for patience.

In short: In the long term certainly still attractive, in the short term technically battered.

•

Álvaro P.@DonAlvaro14

2Wk

@schlimmschlimm He is talking about $ARES not $ARCC

••

Dividendenopi👴@Dividendenopi

2Wk

@DonAlvaro14 you're wrong, he's actually talking about Ares Capital $ARCC

•

Wolf@Eurosammler

2Wk

@Dividendenopi Yes, sorry, had corrected it, had used the wrong abbreviation.

••

Dividendenopi👴@Dividendenopi

2Wk

@Eurosammler 👍, then sorry @DonAlvaro14, I hadn't noticed

••

Stefan@Asgard19

2Wk

You first have to realize what is going on here, interest rates are falling and the prospects of interest rate cuts are increasing. Margins are therefore falling.
That sounds bad at first, which could lead to a fall in share prices and possibly a reduction in dividends.
However, the volume of new loans usually also increases, which can and could generate good money again later on.

Ares is actually well positioned and I think you can keep an eye on it for acquisitions.

I hold a few bdc's myself, including Ares, as long as the dividend holds up I'm not too worried, even if sharp falls in the share price are scary.

•

Dividenden Dompteur@Dividenden_Dompteur

2Wk

@Asgard19 very well summarized. In addition, refinancing is more favorable with lower interest rates.

•

BockaufDividenden@BockaufDividenden

2Wk

Just hold and enjoy the great dividends. I also have the share, overall the prices are also in the red as far as BDCs are concerned, but by holding and collecting dividends they are all in positive overall balance. If you like dividends :)

•

Dividenden Dompteur@Dividenden_Dompteur

2Wk

I continue to hold and build up via a savings plan. Especially as most of the loss was caused by the exchange rate and the weakness of the dollar.

•