ARCC dividend yield: 9.06%. CSCO dividend yield: 2.85%. 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. Cisco has grown its dividend 12+ consecutive years since initiating payments in 2011. The network equipment leader is transitioning to software and subscription models via its security and observability platforms. Cisco returns 50%+ of free cash flow to shareholders via dividends and buybacks annually.
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.
Cisco has grown its dividend 12+ consecutive years since initiating payments in 2011. The network equipment leader is transitioning to software and subscription models via its security and observability platforms. Cisco returns 50%+ of free cash flow to shareholders via dividends and buybacks annually.
Is ARCC or CSCO better for dividend income in 2026?
ARCC currently offers a 9.06% yield (1.92/share/year) while CSCO offers 2.85% (1.60/share/year). ARCC provides higher current income. However, CSCO has grown its dividend faster (3.8% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in ARCC vs CSCO earn per year?
With $10,000 invested today: ARCC pays approximately $906/year. CSCO pays approximately $285/year. With DRIP reinvestment over 10 years, these grow to $2,279/year (ARCC) and $544/year (CSCO).
Does ARCC or CSCO pay monthly dividends?
ARCC pays quarterly dividends. CSCO pays quarterly dividends. Neither pay monthly — both use a quarterly schedule, which is preferred by investors who need regular cash flow.
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