The Motley Fool

AUGUST 23, 2023

A yield trap is a company that pays a potentially unsustainable dividend. A yield trap can come about for a few reasons, including a burdensome debt load, a declining business, or an elevated dividend payout ratio. Arguably no company has filled this funding gap as much as Ares Capital. The company's $21.5

Capital 130

Capital Amortization Depreciation Earnings Before Interest 130

The Motley Fool

AUGUST 10, 2024

Most companies pay out their dividends on a quarterly, semi-annual, or annual basis. The company has paid consecutive monthly dividends since its founding in 1969, and it's raised its payout 126 times since its initial public offering in 1994. companies that are valued at less than $250 million.

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Initial Public Offering Amortization Depreciation Earnings Before Interest 130

The Motley Fool

JUNE 23, 2024

The company hasn't raised the payout since slashing it a couple of years ago, and at recent prices, the telecom stock offers a 6.1% At the end of March, the company's net debt level was 2.9 times the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) it generated over the past 12 months.

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Debt Investing Amortization Depreciation 130

The Motley Fool

APRIL 20, 2024

One type of business that income-focused investors might have come across is the business development company (BDC) , which invests in the debt and equity of middle-market companies. At the end of 2023, it had warrants in 103 companies and equity investments in 74. per share last quarter for Hercules.

Capital 130

Capital Initial Public Offering Debt Collateral 130

The Motley Fool

OCTOBER 24, 2024

Ares Capital is a business development company ( BDC ) that provides financing for middle-market companies (businesses that generate between $10 million and $250 million in earnings before interest, taxes, depreciation, and amortization ( EBITDA ) every year).

Capital 130

Capital Debt Amortization Depreciation 130

The Motley Fool

AUGUST 10, 2024

Sales of Pfizer's COVID-19 products fell faster than expected but not before the company reinvested heaps of the revenue they generated back into its development pipeline. For example, the pharma giant acquired Seagen, a cancer drug developer in late 2023 for about $43 billion. times their interest expenses.

Investing 130

Investing Amortization Depreciation Earnings Before Interest 130

The Motley Fool

DECEMBER 28, 2024

That's because Ares is a business development company (BDC) that mainly focuses on paying high dividends to income-oriented investors. Let's review its business model, growth rates, and valuations to decide. It usually invests between $30 million and $500 million in debt and equity in each company.

Capital 246

Capital Debt Assets Banks 246

The Motley Fool

JANUARY 1, 2025

Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC). As a BDC, Ares provides financing primarily to middle-market businesses with market caps between $100 million and $1 billion. The chances look very good that the company will extend that streak this year.

Investing 130

Investing Taxes Amortization Depreciation 130

The Motley Fool

DECEMBER 23, 2024

This year, though, the company slashed its quarterly payout by 48% down to just $0.25 31, the company reported a $14.1 Sadly, this isn't the only problem the company needs to fix. The BDC currently lends to 131 middle-market companies. After its price collapsed by about 57% in 2024 the stock offers a huge 10.5%

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Portfolios Financial Institutions Amortization Depreciation 130