Didn't see it coming. Bought on July 17th at $19.95. But, a dividend increase makes me happy.
Some of Wells' comment below. Noticed their BDC crew is now at 4 after begin down to 1. Since BDCs are my #1 investing sector I'm glad to see they are rebuilding their analyst corps.
Where times were supposed to be normalizing (i.e., competitive), ARCC showed another booming quarter similar to 4Q20, during which it beneted from the private loan market's post-Covid pent-up demand. Elevated origination ($4.9 billion commitments, $3.9 billion funded) drove heavy structuring fees and interest income, translating to $0.53 of NOI vs. our $0.45 estimate. The dividend was raised to $0.41, which is not much of a big deal given elevated spillover and generous coverage at normal rates of leverage. Management attributed this to that recent earnings strength and an improved outlook for its market opportunity. We are ne-tuning our NOI estimates to $1.86 (from $1.80) and $1.85 (NC) for 2021 and 2022, respectively. Our $22 price target reects an 8% yield on our forward NOI estimates."
Wells also says supplemental dividend would not be unexpected.