Is Ares Capital Stock a Buy, Sell, or Hold Below Its Net Asset Value?

Ares Capital (ARCC) currently trades at a 4.3% discount to its net asset value of $19.35 per share, with a 10.4% forward dividend yield. The stock has lost approximately 3.25% of underlying value over six months. While the discount and high yield present opportunities for income investors, the author recommends waiting for Q3 earnings (Oct. 27) to assess two key metrics: whether realized losses dominate NAV declines and if the nonaccrual rate remains stable at 2.4%. The company's dividend payout ratio is expected to remain around 100% for 2026, exceeding core earnings.