Ares Capital Corporation Announces Tax Reporting Information for Calendar Year 2024

Rhea-AI Summary

Ares Capital (NASDAQ: ARCC) has disclosed its tax treatment for 2024 common stock distributions. The company will distribute $1.92 per share throughout 2024, paid in four quarterly installments of $0.48 each on March 29, June 28, September 30, and December 30.

Of the total distributions, 83.66% ($1.606291 per share) is classified as ordinary income, while 16.34% ($0.313709 per share) represents long-term capital gains. The company has designated these distributions as qualified dividend income and eligible for the dividends received deduction for U.S. domestic corporations. Additionally, specific percentages of each dividend payment are designated as interest-related dividends under IRC section 871(k).

Positive

• Consistent quarterly dividend payments of $0.48 per share throughout 2024
• Total annual distribution of $1.92 per share
• Distributions qualify for favorable tax treatment as qualified dividend income

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- Ares Capital Corporation (“Ares Capital” or the “Company”) (NASDAQ: ARCC) announced today the tax treatment of the Company’s 2024 common stock distributions (CUSIP #: 04010L103).

Record Date	Payable Date	Total Paid Per Share	Ordinary Income Per Share		Long Term Capital Gains per Share (2)	Interest - Related Dividends (3)
			Ordinary Rate	20% Rate (1)
3/15/2024	3/29/2024	$ 0.4800	$ 0.401573	$ 0.078427	$ 0.0000	92.2104%
6/14/2024	6/28/2024	$ 0.4800	$ 0.401573	$ 0.078427	$ 0.0000	92.2104%
9/13/2024	9/30/2024	$ 0.4800	$ 0.401573	$ 0.078427	$ 0.0000	92.2104%
12/13/2024	12/30/2024	$ 0.4800	$ 0.401573	$ 0.078427	$ 0.0000	78.4916%
		$ 1.9200	$ 1.606291	$ 0.313709	$ 0.0000
% of Total Dividends Paid Per Share		100.0000%	83.6610%	16.3390%	0.0000%

(1)		The Company hereby designates these distributions as amounts eligible for treatment as qualified dividend income in accordance with IRC section 854(b) as well as eligible for the dividends received deduction available to certain U.S. domestic corporations.
(2)		No portion of the Company’s distributions is designated as an amount eligible for treatment as a capital gain dividend in accordance with IRC sections 852(b)(3) and 854(a).
(3)		The Company hereby designates the above percentages of each of the total dividends by payment date as “interest-related dividends” within the meaning of IRC section 871(k).

This press release is not intended to constitute tax, legal, investment, or other professional advice. This is general information and should not be relied upon for tax purposes. Stockholders should consult their tax advisor for tax guidance pertinent to specific facts and circumstances.

ABOUT ARES CAPITAL CORPORATION

Founded in 2004, Ares Capital is a leading specialty finance company focused on providing direct loans and other investments in private middle market companies in the United States. Ares Capital’s objective is to source and invest in high-quality borrowers that need capital to achieve their business goals, which often times can lead to economic growth and employment. Ares Capital believes its loans and other investments in these companies can help generate attractive levels of current income and potential capital appreciation for investors. Ares Capital, through its investment manager, utilizes its extensive, direct origination capabilities and incumbent borrower relationships to source and underwrite predominantly senior secured loans but also subordinated debt and equity investments. Ares Capital has elected to be regulated as a business development company (“BDC”) and was the largest publicly traded BDC by market capitalization as of December 31, 2024. Ares Capital is externally managed by a subsidiary of Ares Management Corporation (NYSE:ARES), a publicly traded, leading global alternative investment manager. For more information about Ares Capital, visit www.arescapitalcorp.com.

FORWARD-LOOKING STATEMENTS

Statements included herein or on the webcast/conference call may constitute “forward-looking statements,” which relate to future events or Ares Capital’s future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results and conditions may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Ares Capital’s filings with the Securities and Exchange Commission. Ares Capital undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250131415675/en/

Ares Capital Corporation

Carl G. Drake

John Stilmar

888-818-5298

Source: Ares Capital Corporation

FAQ

What is ARCC's dividend payment schedule for 2024?

ARCC will pay quarterly dividends of $0.48 per share on March 29, June 28, September 30, and December 30, 2024, totaling $1.92 per share annually.

How much of ARCC's 2024 distributions are classified as ordinary income?

83.66% of ARCC's 2024 distributions ($1.606291 per share) are classified as ordinary income.

What percentage of ARCC's 2024 distributions are long-term capital gains?

16.34% of ARCC's 2024 distributions ($0.313709 per share) are classified as long-term capital gains.

Are ARCC's 2024 distributions eligible for qualified dividend income treatment?

Yes, ARCC has designated these distributions as eligible for qualified dividend income treatment and the dividends received deduction for U.S. domestic corporations.