ARCC Dividend

Although ARCC has a dividend of 0.48 with an ex-dividend date of Sep 15, you can sell covered calls on Ares Capital Corporation - Closed End Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:45 AM ET):

Ares Capital Corporation - Closed End Fund (ARCC)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
22.59	22.60	22.59	+0.03	718K	11	16B

ARCC Dividend-Like Income Using Covered Calls

With ARCC at 22.59, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield	Annual Premium	Cents/Day
3%	0.68	0.2
5%	1.13	0.3
10%	2.26	0.6

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On ARCC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	23.00	0.20	40	0.5	0.40 (1.8%)
Dec 19	23.00	0.50	131	0.4	0.40 (1.8%)

5% Yield On ARCC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	23.00	0.20	40	0.5	0.40 (1.8%)
Dec 19	23.00	0.50	131	0.4	0.40 (1.8%)

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Want more examples? ARCB Dividend | ARCO Dividend