Ares Dynamic Credit Allocation Fund Declares A Monthly Distribution Of $0.1125 Per Share

Rhea-AI Summary

Ares Dynamic Credit Allocation Fund (NYSE:ARDC) declared a monthly distribution of $0.1125 per common share for December 2025.

Key dates: Ex‑Date and Record Date are December 22, 2025; Payable Date is December 31, 2025. Using the Fund's closing price of $13.45 on December 10, 2025, the distribution annualizes to approximately 10.04%. The notice states the distribution rate is informational only and not necessarily indicative of future results or total return.

The Fund will disclose distribution sources under Section 19(a) and may make a year‑end adjusting distribution to meet tax requirements; final tax reporting will appear on Form 1099‑DIV.

Positive

• Monthly distribution of $0.1125 per share declared
• Payable date set for December 31, 2025
• Distribution annualizes to approximately 10.04% based on $13.45 price

Negative

• Distribution rate not indicative of future results or total return
• Distribution sources are estimates and may change for tax reporting
• Future distributions are at the Fund’s discretion and may vary

Key Figures

Monthly distribution $0.1125 per share Declared December 2025 common share distribution

Ex-Date December 22, 2025 Ex-date for December 2025 distribution

Record Date December 22, 2025 Record date for December 2025 distribution

Payable Date December 31, 2025 Payment date for December 2025 distribution

Reference share price $13.45 Fund share price as of close on December 10, 2025

Annualized distribution rate 10.04% Rate based on December 2025 monthly distribution and $13.45 price

Market Reality Check

$13.45 Last Close

Volume Volume 64,667 vs 20-day average 108,973 (about 59% of typical activity) ahead of this distribution update. low

Technical Price at $13.38 is trading below the 200-day MA of $14.03 and 14.34% under the 52-week high.

Peers on Argus

Peers in asset-management closed-end funds showed mixed, mostly modest moves (e.g., ASG +0.19%, EIC +0.63%, SOR -1.22%), suggesting ARDC’s action was more stock-specific than part of a broad sector swing.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 24	Portfolio data update	Neutral	+0.8%	Routine release of October 2025 portfolio and performance data.
Nov 11	Monthly distribution	Neutral	+0.5%	Declared November 2025 monthly distribution of $0.1125 per share.
Oct 24	Portfolio data update	Neutral	+0.0%	Released September 2025 portfolio composition and performance data.
Oct 10	Monthly distribution	Neutral	+1.0%	Declared October 2025 monthly distribution of $0.1125 per share.
Sep 25	Portfolio data update	Neutral	-1.1%	Published August 2025 portfolio composition and performance data.

Pattern Detected

Recent ARDC news has been routine distributions and monthly portfolio data, typically followed by modest, low-volatility price reactions around the announcements.

Recent Company History

This announcement continues ARDC’s pattern of routine transparency and monthly income updates. Over the last few months, the fund has regularly published month-end portfolio data for August 31, 2025, September 30, 2025, and October 31, 2025, plus repeated declarations of a $0.1125 monthly distribution. Those prior items produced small price moves (from about -1.06% to +1.04%), indicating that investors have generally treated these updates as expected, incremental information rather than major catalysts.

Market Pulse Summary

This announcement detailed ARDC’s December 2025 monthly distribution of $0.1125 per share, with an indicated annualized distribution rate of 10.04% based on a prior $13.45 share price. It reiterates that amounts and sources may include income, capital gains, or return of capital, with final characterization provided on Form 1099‑DIV. Recent history shows similar routine distribution and portfolio-data updates, so investors may focus on consistency of payouts and any future adjustments.

Key Terms

distribution rate financial

"the distribution represents an annualized distribution rate of approximately 10.04%"

Distribution rate is the percentage that shows how much income an investment pays out to holders over a year, usually expressed relative to the fund’s share price or net asset value. It tells investors the income they can expect—similar to the interest rate on a savings account—and helps gauge whether a security is delivering steady cash flow or relying on capital to pay distributions, which can signal higher risk.

short-term capital gain financial

"such as from short-term capital gain, long-term capital gain, or return of capital"

A short-term capital gain is the profit an investor realizes when they sell an asset they owned for a short period—typically one year or less—and it is taxed at higher, ordinary income tax rates rather than lower long-term rates. It matters because taxes reduce the money you keep from a trade, so knowing whether a gain is short-term can change decisions about how long to hold an investment, similar to choosing between a fast but costly service and a slower, cheaper option.

long-term capital gain financial

"such as from short-term capital gain, long-term capital gain, or return of capital"

A long-term capital gain is the profit you make from selling an investment, like stocks or property, after holding onto it for more than a year. It matters because these gains are often taxed at a lower rate than quick profits, encouraging people to invest and keep their investments longer.

return of capital financial

"such as from short-term capital gain, long-term capital gain, or return of capital"

Return of capital is when an investor receives money from their investment that is not considered profit or earnings but rather a portion of the original amount they invested. It’s similar to getting back part of your initial savings rather than gains from it. This matters because it can affect how much money an investor still has in the investment and may have tax implications.

Section 19(a) of the Investment Company Act of 1940 regulatory

"As required by Section 19(a) of the Investment Company Act of 1940, a notice will be"

Section 19(a) of the Investment Company Act of 1940 is a legal rule that bars certain insiders—such as a fund’s affiliates and its principal underwriters—from buying or redeeming shares of the fund in ways that could create unfair advantages or manipulate prices. It matters to investors because it helps prevent self-dealing and preserves fair treatment and market integrity, similar to rules that stop referees from betting on games they officiate.

Internal Revenue Code regulatory

"to satisfy the minimum distribution requirements of the Internal Revenue Code"

The Internal Revenue Code is the U.S. federal law that sets the rules for calculating, collecting, and enforcing taxes — essentially the country's tax rulebook. It matters to investors because those rules determine how much companies and individuals actually keep after taxes, affecting profits, cash flow, dividend payouts, deal structures and the after-tax return on investments; changes in the Code can change financial outcomes and investment strategy much like a rule change in a game.

Form 1099‑DIV regulatory

"investors will be sent a Form 1099‑DIV for the previous calendar year"

Form 1099‑DIV is a U.S. tax document that brokers and investment firms send to investors and the IRS to summarize dividends, capital gain distributions, and other investment payouts received during the year. Investors use it like a year‑end receipt to report taxable income on their tax return and to determine whether those payments are taxed at ordinary rates or at typically lower qualified dividend/capital‑gains rates, which affects after‑tax returns.

net investment income financial

"derived from sources other than undistributed net investment income, such as from"

Net investment income is the money an investor or fund actually keeps from its investments after subtracting the costs of running those investments (like management fees, interest, and losses). Think of it as your paycheck from owning assets: gross returns minus the bills needed to earn them. Investors watch it because it shows how profitable the investment activities are, influences dividend payouts and cash available for growth, and helps compare true performance across funds or companies.

AI-generated analysis. Not financial advice.

NEW YORK, NY / ACCESS Newswire / December 11, 2025 / Ares Dynamic Credit Allocation Fund, Inc. (the "Fund") (NYSE:ARDC) announced today the declaration of its distribution for the month of December 2025 of $0.1125 per common share, payable as noted below.

The following dates apply to the declared distribution:

Ex-Date: December 22, 2025
Record Date: December 22, 2025
Payable Date: December 31, 2025
Per Share Amount: $0.1125

Based on the Fund's current share price of $13.45 (as of its close on December 10, 2025), the distribution represents an annualized distribution rate of approximately 10.04% (calculated by annualizing the distribution amount and dividing it by the current price). Information regarding the distribution rate is included for informational purposes only and is not necessarily indicative of future results, the achievement of which cannot be assured. The distribution rate should not be considered the yield or total return on an investment in the Fund.

The timing and amount of future distributions, if any, are at the discretion of the Fund. As required by Section 19(a) of the Investment Company Act of 1940, a notice will be distributed to the Fund's stockholders in the event that a portion of a monthly distribution is derived from sources other than undistributed net investment income, such as from short-term capital gain, long-term capital gain, or return of capital. Such notices will also be posted on the Fund's website at www.arespublicfunds.com.

The amounts and sources of distributions reported are only estimates and are not provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment performance during the remainder of its fiscal year and may be subject to change based on tax regulations. The final determination of the source of these distributions will be made after the Fund's fiscal year end. If necessary, the Fund may elect to pay an adjusting distribution in December that includes any additional income and net realized capital gains in excess of the monthly distributions for that year to satisfy the minimum distribution requirements of the Internal Revenue Code. In January or February of each year, investors will be sent a Form 1099‑DIV for the previous calendar year that will define how to report these distributions for federal income tax purposes.

This press release is not intended to, and does not constitute, an offer to purchase or sell shares of ARDC.

About Ares Dynamic Credit Allocation Fund, Inc.

Ares Dynamic Credit Allocation Fund, Inc. ("ARDC") is a closed-end management company that is externally managed by Ares Capital Management II LLC, a subsidiary of Ares Management Corporation. ARDC seeks to provide an attractive level of total return primarily through current income and, secondarily, through capital appreciation. ARDC invests in a broad, dynamically-managed portfolio of credit investments. There can be no assurance that ARDC will achieve its investment objective. ARDC's net asset value may be accessed through its NASDAQ ticker symbol, XADCX. Additional information is available at www.arespublicfunds.com.

Forward-Looking Statements

Statements included herein may constitute "forward-looking statements" within the meaning of the U.S. securities laws, and may relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and others beyond the Fund's control. Ares Dynamic Credit Allocation Fund undertakes no duty to update any forward-looking statements made herein.

This document is not an offer to sell securities and is not soliciting an offer to buy securities in any jurisdiction where the offer or sale is not permitted. An investor should consider the Fund's investment objective, risks, charges and expenses carefully before investing.

Ares Dynamic Credit Allocation Fund is a closed-end fund, which does not engage in a continuous offering of its shares. Since its initial public offering, the Fund has traded on the New York Stock Exchange under the symbol ARDC.Investors wishing to purchase or sell shares may do so by placing orders through a broker dealer or other intermediary.

Contact

Ares Dynamic Credit Allocation Fund, Inc.
John Stilmar
jstilmar@aresmgmt.com
(888) 818-5298
or
Destra Capital Advisors LLC
ARDC@destracapital.com
(877) 855-3434

SOURCE: Ares Dynamic Credit Allocation Fund

View the original press release on ACCESS Newswire

FAQ

What distribution did ARDC declare for December 2025 and when is it payable?

ARDC declared a monthly distribution of $0.1125 per share, payable December 31, 2025.

What are the ex‑date and record date for ARDC's December 2025 distribution?

Both the Ex‑Date and Record Date are December 22, 2025.

How was the ARDC distribution annualized to 10.04%?

The monthly distribution was annualized and divided by the Fund's close price of $13.45 (close on December 10, 2025) to yield ~10.04%.

Will ARDC investors receive tax reporting for the December 2025 distribution?

Yes; final distribution sources for tax purposes will be reported on Form 1099‑DIV in January or February.

Could part of the ARDC distribution be a return of capital?

Possibly; the Fund will notify shareholders under Section 19(a) if any portion is from sources other than undistributed net investment income.

Can ARDC change the timing or amount of future distributions?

Yes; the timing and amount of future distributions are at the discretion of the Fund and may change.