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The Motley Fool

Where Will Ares Capital Corporation Be in 3 Years?

The Motley Fool
Summary
Nutrition label

81% Informative

Ares Capital makes loans to middle-market companies, which generate between $10 million and $250 million in annual earnings before interest, taxes, depreciation, and amortization (EBITDA) The Federal Reserve cut its benchmark rates three times in 2024 but only anticipates two more rate cuts in 2025 .

BDCs thrive in a Goldilocks market with elevated but sustainable interest rates.

Investors will probably be more focused on its dividends, which should continue climbing.

But if the market swoons again, investors should brace for a hit as its business buckles under the pressure of unstable rates and defaulted loans.

Now is the best time to buy before it’s too late. Don’t miss this second chance at a potentially lucrative opportunity.

VR Score

85

Informative language

86

Neutral language

20

Article tone

informal

Language

English

Language complexity

33

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

medium-lived

Source diversity

2

Affiliate links

no affiliate links