Ares Capital Shares Essential Tax Reporting for 2024 Dividends

Author: Dylan Bailey Updated: 01-31-2025 06:43 AM

Ares Capital Corporation Shares Tax Reporting Information for 2024

Ares Capital Corporation (“Ares Capital” or the “Company”) (NASDAQ: ARCC) has announced important information regarding the tax treatment of its common stock distributions for the year 2024. This announcement is crucial for shareholders as it outlines the details they need to understand how their dividends will be taxed. Knowing this information can help investors manage their tax responsibilities effectively.

Important Dates for Shareholders

Shareholders need to be aware of several key dates related to the Company’s dividend payments. The record date and payable date are significant as they determine eligibility for receiving these distributions. Below is a summary of the critical dists:

Dividend Payment Schedule

The Company has scheduled four major dividend payment dates throughout 2024. Here’s a breakdown:

March 15, 2024 (Record Date): Payments will be made on March 29, 2024, with a total distribution of $0.4800 per share.
June 14, 2024 (Record Date): Payments will be issued on June 28, 2024, maintaining the same distribution amount of $0.4800 per share.
September 13, 2024 (Record Date): Payments will occur on September 30, 2024, again providing a total of $0.4800 per share.
December 13, 2024 (Record Date): Concluding the year, payments will be made on December 30, 2024, with the same distribution amount of $0.4800.

Tax Treatment of Distributions

Understanding the tax treatment of these distributions is essential. Ares Capital designates its distributions under specific tax categories.

Type of Income Distribution

The total payments qualify as ordinary income and interest-related dividends, which can influence how shareholders report their taxable income. The Company specifies that:

Out of the total paid per share, $0.401573 will be classified as ordinary income.
Additionally, a portion qualifies as interest-related dividends, impacting overall tax rates.

These classifications allow shareholders to take advantage of favorable tax treatment under the Internal Revenue Code, which is beneficial for those seeking to optimize their tax outcomes.

Annual Dividend Summary for 2024

In total, Ares Capital aims to distribute a consistent dividend across all payment dates. With the total dividends paid per share set at $1.9200 for the year, the Company strives to ensure its shareholders receive significant returns on their investments.

Investment Opportunity Insights

Ares Capital Corporation continues to position itself as a leader in specialty finance. The firm is diligent in sourcing quality borrowers, leading to successful business growth that ultimately benefits shareholders with attractive returns.

By maintaining a robust dividend framework and clear tax reporting, Ares Capital not only builds shareholder confidence but also promotes an understanding of their financial positions. Shareholders are encouraged to consult their tax advisors to best navigate their specific tax situations regarding these distributions.

About Ares Capital Corporation

Established in 2004, Ares Capital is renowned for its focus on providing direct loans and investments in private middle-market companies, primarily in the United States. The Company's strategies are aimed at generating quality returns for its investors while also helping businesses achieve their goals.

Ares Capital’s management team utilizes its extensive origination capabilities to maintain a diverse, revenue-generating portfolio. As the largest publicly traded business development company (BDC) by market capitalization as of the end of the year, Ares puts emphasis on growth and profitability.

Frequently Asked Questions

What is Ares Capital Corporation?

Ares Capital Corporation is a publicly traded specialty finance company focusing on investments in private middle-market companies.

When will Ares Capital's dividends be paid in 2024?

Dividends will be paid on March 29, June 28, September 30, and December 30, 2024.

What is the total amount of dividends Ares Capital plans to distribute in 2024?

Ares Capital intends to distribute a total of $1.9200 per share in dividends throughout 2024.

How is the tax treatment of these dividends structured?

The dividends are categorized as ordinary income and interest-related dividends, impacting shareholders' tax liabilities.

How can I learn more about Ares Capital and its financial products?

Investors can visit Ares Capital’s official website for detailed information on their financial offerings and latest updates.

About The Author

My name is Dylan Bailey, and I am 28 years old. I am an author and an expert on the stock market who specializes in publicly traded companies. Early fascination with the stock market inspired me to seek a finance degree and then delve deeply into the world of stocks. I have developed over the years my abilities to spot investment prospects, assess business performance, and analyze market trends.

My books and articles try to help regular investors understand the nuances of the stock market. Anyone can, in my opinion, make wise investment choices and succeed financially if they have the correct information and resources. In my writing, I combine in-depth research with practical insights and advice that can be put into action. This is done with the intention of assisting readers in navigating the constantly shifting landscape of publicly traded companies.

In addition to writing, I also host webinars and workshops, where I give presentations and share my knowledge with a wider audience. I also write for top financial journals and show up as a guest analyst on financial news shows. I like to travel, spend time with my family, and keep active by playing different sports when I'm not buried in market research.

My goal is to enable people to choose wisely and consciously in their investments, so taking charge of their financial futures. By my work, I hope to create a community of informed and self-assured investors prepared to take advantage of the chances presented by the stock market.

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