About Ares Capital Corporation (ARCC) — Dividend Analysis 2026
Ares Capital is the largest Business Development Company by assets. It provides financing to middle market companies and pays a generous quarterly dividend plus occasional special dividends. With $21B+ in AUM and diversified exposure across industries, ARCC is the benchmark BDC for income investors.
Is ARCC a good dividend investment in 2026?
ARCC offers a 9.06% forward yield with a 88% payout ratio. With a safety score of 70/100, the dividend appears safe. The 5-year dividend CAGR of 3.1% is modest — investors should weigh current income against growth alternatives.
ARCC DRIP calculator — what's the difference?
With DRIP on a $10,000 investment over 10 years, your ARCC portfolio grows to $43.8K vs $33.2K without reinvestment — a DRIP bonus of $10.7K. This is the compound interest effect in action.
ARCC dividend growth history & forecast
ARCC has grown its dividend by 2% over the last year and 3.1% annually over 5 years. At this pace, an investor who holds for 10+ years will see their yield on cost grow substantially above the current 9.06% — illustrating why dividend growth stocks are powerful long-term wealth builders.
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🌍 ARCC Yield by Country & Account Type
Real after-tax yield depends on where you live and how you hold ARCC.
Gross yield
9.06%
Tax rate
15.00%
After-tax yield
7.70%
Real yield (−CPI)
4.90%
Account/Country
Tax Rate
After-tax Yield
Real Yield
$10K Annual Income
🇺🇸 Roth IRA / 401k
0%
9.06%
6.26%
$906 / yr
🇺🇸 US Taxable (15%) ✓
15%
7.70%
4.90%
$770 / yr
🇺🇸 US Taxable (20%)
20%
7.25%
4.45%
$725 / yr
🇬🇧 UK ISA
0%
9.06%
6.26%
$906 / yr
🇬🇧 UK Taxable
8.75%
8.27%
5.47%
$827 / yr
🇨🇦 TFSA
0%
9.06%
6.26%
$906 / yr
🇨🇦 CA Taxable
25%
6.79%
4.00%
$680 / yr
🇦🇺 Super (pension)
15%
7.70%
4.90%
$770 / yr
🇦🇺 AU Taxable
30%
6.34%
3.54%
$634 / yr
🇩🇪 DE Taxable
26.375%
6.67%
3.87%
$667 / yr
🇫🇷 FR Taxable
30%
6.34%
3.54%
$634 / yr
Real yield = after-tax yield minus US CPI of 2.8%. Click any row to select. US withholding tax (30%, reducible by treaty) applies to non-US residents holding US stocks in taxable accounts.
🎯 ARCC Income Goal & Break-Even
Dividend Break-Even
12yr
Years for dividends to repay your full ARCC investment price of $21.20/share (🇺🇸 US Taxable (15%) · 15.00% tax)
$10K invested · 10 Years
Dividends earned (DRIP)
$12.5K
Lost to inflation (~2.8% CPI)
−$2.5K
Real purchasing power gain
$10.0K
How much do I need to invest in ARCC for:
Shares needed
14,706
Capital required
$311,767
Monthly income
$2,000
Based on current dividend of $1.92/share/yr · 🇺🇸 US Taxable (15%) · static projection (no growth assumed).
📅 ARCC Dividend Payment Schedule
ARCC pays quarterly — 4 times per year. Next ex-div: Mar 14, 2026.
Jan
Feb
Mar
💰
Apr
May
Jun
💰
Jul
Aug
Sep
💰
Oct
Nov
Dec
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10 shares
$4.08 / payment
$16.32 / year after tax
100 shares
$40.80 / payment
$163.20 / year after tax
1,000 shares
$408.00 / payment
$1632.00 / year after tax
📊 ARCC vs BDC Sector Benchmarks
How ARCC compares to typical BDC sector averages.
Dividend YieldARCC: +9.06% vs sector avg 9.10% ↓ Below avg
Payout RatioARCC: 88.00% vs sector avg 88.00% ↓ Below avg
ARCC━━ BDC avg: 88.00%
⚠️ Disclaimer: All projections are for educational purposes only. Dividend payments, stock prices, and growth rates are estimates based on historical data. Past performance does not guarantee future results. This is not financial advice — consult a qualified financial professional before investing. Data sourced from public financial records and updated regularly.