Ares Capital Corporation announced the breakdown of its 2025 common stock distributions (CUSIP 04010L103), revealing a total annual payout of $1.9200 per share across four quarterly payments of $0.4800 each. For each distribution, $0.339128 per share (approximately 70.65% of the total) qualifies as ordinary income eligible for the 20% qualified dividend rate under IRC section 854(b), while $0.140872 per share (29.35%) is designated as non-qualified ordinary income. No portion of the distributions is treated as long-term capital gains. The company also designated 100% of each payment as interest-related dividends under IRC section 871(k). Quarterly record and payable dates were March 14/31, June 13/30, September 15/30, and December 15/30 of 2025, with slight variations in the percentage of ordinary income qualifying for the 20% rate (ranging from 84.75% to 85.64% per quarter).

Founded in 2004, Ares Capital is the largest publicly traded business development company (BDC) by market capitalization as of December 31, 2025. It specializes in providing direct senior secured loans, subordinated debt, and equity investments to U.S. middle-market companies, leveraging its parent Ares Management’s origination platform. The firm’s focus on high-quality borrowers aims to generate attractive current income and potential capital appreciation for shareholders. With an externally managed structure and strong third-party origination capabilities, Ares Capital has built a diversified portfolio designed to mitigate credit risk and support consistent dividend coverage, making its common stock distributions and tax attributes a critical consideration for income-seeking investors.