4-Star Stocks Poised to Pop: Ares Capital

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, business development company Ares Capital (NAS: ARCC) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Ares' business and see what CAPS investors are saying about the stock right now.

Ares facts

Founded

2004

Market Cap

$3.5 billion

Industry

Specialty finance

Trailing-12-Month Revenue

$666.5 million

Management

President/Director Michael Arougheti
CFO Penni Roll

Return on Equity (average, past 3 years)

19.6%

Cash/Debt

$216.4 million / $2.0 billion

Dividend Yield

9.5%

Competitors

American Capital
Apollo Investment
Newtek Business Services


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 431 members who have rated Ares believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, CoreAndExplore, succinctly summed up the bull case for our community: "Fantastic margins, very low debt for a [business development company], a prudently managed portfolio of companies, a fat dividend, and low valuation all point to investment success -- definite BUY at this price."

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its four-star rating, Ares may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement